Posted on
Wednesday, July 23, 2008
Wednesday, July 23, 2008
Burden Of Financing Government Expands
With both the natural and political campaign heat rising, a lot of people might not have noticed the 2008 “Cost of Government Day” that arrived on July 16.
That’s the date on which the average American has paid his or her share of the financial burden imposed by the spending and regulation that occurs on the federal, state and local levels, as figured by Americans for Tax Reform.
A disturbing trend on the observance of this day is that it continues to come a little later on a steady basis, indicating that paying for the cost of government is taking more and more days just about every year.
Now it takes more than a full half a year to cover that cost. That ought to make taxpayers think twice when they tend to be attracted to candidates who promise to have government “do more” for everyone. Such ideas call for bigger government, and that means bigger costs to taxpayers.
This year’s date is four days later than last year when it was observed on July 12. It is 17 days later than the “Cost of Government Day” notched as recently as 2000. Since 1977, COGD has fallen later than July 16 only four other times.
It is easy to pinpoint the primary problem — the free-spending ways of elected officials in Washington.
In its report on this year’s date, Americans for Tax Reform notes, “The driving factor for this development is the fact that all components of the cost of government — federal spending, state and local spending, and regulation — are now increasing faster than national income.”
Continuing that course without abatement is a recipe for national financial disaster.
Regaining control of runaway spending does not involve just deciding to cut out new spending. The amount of money spent by Washington is already on track — automatically, without politicians lifting a finger — to go through the roof in the years ahead, said Rebecca Hageline, of The Heritage Foundation.
“Our national entitlement programs are set to expand rapidly,” Hageline explained.
Heritage Foundation researchers found: “These middle-class retirement programs, Social Security, Medicaid and Medicare will cause federal spending to jump up by half, from 20 percent of the economy to 30 percent by 2035. This tsunami of spending is a major threat to limited government because it runs on auto-pilot, with automatic increases locked in by each program’s governing laws.
“While other programs are constrained through annual budgets, entitlements get first call on resources. Other goals such as defense or national security must compete for an increasing smaller share of what’s left.”
Forecasters have not ignored this gathering storm. Heritage and others have warned policymakers in Washington it was coming several years, with little acknowledgement. The few politicians who have tried to speak up are ignored, or worse.
A point of no return is almost at hand, Hageline said. “We’ve got to start addressing this problem now, before it gets even worse.”
There is no easy fix. Solutions mentioned include raising the Social Security retirement age and targeting low-income seniors more effectively. A more generationally equitable system is needed in the long run to add a Social Security option in which individuals set aside money for their own retirement that they own themselves, said Heritage’s Brian Riedl.
No matter what solution is proposed, it is time for everyone in Washington to get involved, Hageline declared.
Concerned citizens can be most effective in delivering that message, and people are being urged to get involved at the community level, spreading the word and sending a groundswell demand for Washington policy to take notice, and deliver a solution.
Just the possibility of sometime soon celebrating Cost of Government Day close to Christmas ought to be enough to jump start citizen involvement.

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