What is Government's Role?
When the founders were writing the constitution and establishing the federal
government of the USA, they had a number of concerns. A primary concern
was to restrict the power of the federal government so as to not infringe on
the rights of the individual and the states. One of the primary reasons they
had fought for independence from Britian was the government had gone too
far in exerting their power, so they did not want to repeat the same mistake.
The states were concerned that an oppressive federal government might
take away their rights and that issue also had to be resolved before they
could agree on how a new government would be formed.
In the end they came up with the following as to what the federal
government had the power to do:
- Make currency.
- Declare wars.
- Create military branches.
- Sign treaties with foreign countries.
- Regulate interstate and international commerce.
- Create post offices and stamps.
- Make laws to support the constitution.
When one looks at all of the agencies that exist now in the USA federal
government how many of them are not included in this list? I found that
according to the Federal Register there are currently 438 agencies and sub-
agencies in the Federal Government. President Joe Biden's Cabinet includes
Vice President Kamala Harris and the heads of the 15 executive departments
- the Secretaries of Agriculture, Commerce, Defense, Education, Energy,
Health and Human Services, Homeland Security, Housing and Urban
Development, Interior, Labor, State, Transportation, Treasury, and Veterans
Affairs, and the Attorney General. Additionally, the Cabinet includes the
White House Chief of Staff, the US Ambassador to the United Nations, the
Director of National Intelligence, and the US Trade Representative, as well as
the heads of the Environmental Protection Agency, Office of Management
and Budget, Council of Economic Advisers, Office of Science and Technology
Policy, and Small Business Administration. Our first president, George
Washington, had 4 people in his cabinet. At the end of 2022 the Federal
Workforce was a whopping 2.87 million people and the nation's largest
employer. When Washington was president the entire population of the US
was less than 2.87 million.
Additionally, 16.7% of the total population work at some level of
government. Somehow over the years the government has taken over every
aspect of our lives and it continues to expand. We, the taxpayers, pay their
salaries.
President Regan once quipped that there are only three things in life that are
certain: death, taxes, and government programs. It seems that the joke is
on us. Regan also said that government is not the solution to our problems,
it is the problem. Having said that, there seems that there is no chance of
ever reducing the size of government, only the remote hope that somehow
the rate of expansion can be reduced.
Currently a little over 79 % of the USA workforce is in services. The balance
is broken down to 1.66% in agriculture and 19.18% in industry. This seems
upside down to me as well.
The USA has a labor participation rate of 60.2 % and 16.7% of that total
work for the government at some level. This means that the remaining
43.5% of the working population supports the rest. I don't think this is
sustainable. It certainly isn't if the trajectory remains the same.
If you think this is unique to the USA, think again. Canada currently has
65.6% labor participation rate. 20.4% of that total work for government at
some level and government is the largest employer in Canada. Government
in Canada represents a whopping 64% of the country's GDP. From this one
could conclude that Canada is on the same trajectory, or worse, as the USA.
If this trend continues who will be left to pay the others who are working for
the government?
Mexico is currently spending only 11.48% of their GDP for government and it
is projected to actually decrease in the following few years. A breakdown of
Mexico's work force is as follows: 4.15 percent Agriculture, 32.13 percent
Industry, and 58.77 percent Services. One might say that the Mexican
government provides fewer services to their people, which is true, but the
citizens are not paying for services they do not want or need either.
Somewhere there is a balance between an intrusive costly government and
one that sticks to the basics.
Of course, there are other factors to consider but overall, it looks like what
the founders feared would happen has happened. This started to happen
from the very founding of our governments. It has happened slowly but
deliberately. The old Chinese proverb - death by a thousand pin pricks -
seems to apply.
One of the tactics used to perpetuate this trend in the USA is that our
government takes us to the brink of a preverbal fiscal cliff during every
budget cycle and both political parties are poised to blame the other for
creating the crisis. The press is busy selling the public that if some
agreement is not reached by some arbitrary date vital public services will
have to stop, or the military will not be paid, or retired folks will not receive
their social security benefits, or medical services will have to stop, etc. All of
this drama comes to a head when, at the eleventh hour, congress once again
funds further expansion of the government by spending money they do not
have in the process and the public sighs in relief in unison that the crisis has
been averted until the next budget cycle when this drama repeats itself once
again. In that way we are all complacent in promoting the growth of an
already bloated government by borrowing money and growing the national
debt.
To balance the federal budget, government revenue must meet or exceed
government spending. That's happened only twice in the past half-century:
President Lyndon Johnson's administration did it in 1969, and President Bill
Clinton's administration from 1998 to 2001. As of this writing it has been 23
years since the USA has had a balanced budget.
Another tactic is for the government to identify or create a crisis and then
position itself as the only viable solution. Many times, this leads to the
creation of yet another government agency. Many of them sound necessary
and good when created but they soon lose their focus. They expand their
mission and grow exponentially. The reason they were formed in the first
place is lost in the process. There is no turning back, they just grow like a
cancer with no cure.
I have learned that the scariest phrase to hear is "I am from the
government, and I am here to help you." As for me, just pass by me and I
will figure out how to help myself.
Author: Tim Eyerman