Thursday, February 19, 2009

We Are All Socialists Now....

This is the title of the latest Newsweek cover story.

Government intrusion into our economy has grown. Ten years ago U.S. government spending was 34% of GDP (Gross Domestic Product). Projections for 2010 are for U.S. gov't spending to be 40% of our GDP (40% of our economy). GDP is a measure of the total output of our economy.

European governments, which follow a more socialist model historically, spend about 48% of their GDP. We are catching up!

Spending on entitlement programs (Social Security, Medicare) is going to increase, so the percentage of the economy (GDP) taken by the government will get bigger. Who knows, maybe we will surpass the French!

Unless you believe in socialism, the fact that this is the cover story of a major news magazine here in the United States of America has to make you take pause.

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