Where has all the money gone?

Something I have been thinking about for awhile now that I just have to get off my chest.

I read a few years ago that war was a way countries burned off excess production. The context was the Great Depression, and the world-wide cause was an excess of production capability.

We have had a similar problem the last 30 year in this country, probably since the Carter Malaise in the ‘70s, but instead of using the excess capability to make things just to blow them up (except for the Gulf Wars), we have hired that excess work onto the government.

As usual I can’t find the link I want when I need it, but I heard a few years ago that in the ‘60’s one person in 10 worked for the government at some level (municipal through Federal levels) and now that number is up to 1 in 4. Part of the problem is the expansion of women into the workforce (think about the last time you contacted a government office and had a man answer), part is the complete shutdown of manufacturing, and part is a credit market that demands everybody have the latest everything, forcing more couples to become two income households so they can have the plasma TV and the Bahaman vacation.

The trouble is that somebody has to pay all of these wages. A short term expansion of government payrolls to work through a crisis is one thing- think FDR- but we cannot continue to borrow the pay the bill for 30 years like we have done.

There is only one entity in the world that can borrow money without proof it can pay it back- our Federal government. Most states have balanced budget amendments, requiring all levels of government to avoid or restrict their debt. But how any of those same entities have a portion of their budgets paid by Uncle Sam? Not just the State, county and city budgets, but also the schools.

Finding stats for this thesis has been tough. I would love to support my thoughts with facts. Just try to find them. The Bureau of Labor should have the breakdown readily available, but I can’t find it. I did see where in 2006 over 19 million people worked for the government, but there is no breakdown of what they consider as a government worker. Do teachers count? What about civilian DOD employees? Cops and firefighters?

I have gotten bit off my point, but here it is. For the last thirty years governments of the world have spent money on employees instead of war. In some ways I’m grateful, but what is the end game. I can see a temporary increase during an economic downturn, but 30 years? When does a temporary fix become a way of life?

And more importantly- how do we end it now, without another complete worldwide economic crash? We need to wean people off the govern payrolls, but how?