The False Liberal Narrative about U.S. Government Taxes and Spending

Many liberals think(or at least claim) that government revenue and spending went down dramatically during the “Reagan Revolution” of the 1980s and have remained much lower than they were then. This is then used as the explanation for the stagnation in average wages and the increased inequality. This claim is demonstrably false. Here is the reality:

governmentspendingchart

Automation, immigration, free trade and the rise of value transference in the economy are the real reasons for the increase in inequality.

References

Schuyler, Michael(2014). A Short History of Government Taxing and Spending in the United States, Tax Foundation, February 19 2014 http://taxfoundation.org/article/short-history-government-taxing-and-spending-united-states

Advertisements
This entry was posted in Economics. Bookmark the permalink.