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Does the United States Have The 'Smallest Government in 45 Years'?
Capitol Confidential ^ | 8/15/2012 | Tom Gantert

Posted on 08/16/2012 7:56:45 AM PDT by MichCapCon

Government workers at all levels are taking a larger share of all compensation and getting paid more than in the past.

Yet, an editor at a national magazine claims government is the smallest since the 1960s.

"We now have our smallest government in 45 years," said Jordan Weissmann, an associate editor at The Atlantic.

Weissman based his opinions on an analysis done by The Hamilton Project, a public policy offshoot of The Brookings Institution.

But Weissmann’s claim is based on the number of government jobs as a percent of the total population. It deserves a closer look.

James Hohman, fiscal policy analyst at the Mackinac Center for Public Policy, says the size of government can't be judge solely on the number of government workers.

Hohman questions Weissmann’s comparison between the number of government jobs and the total population.

"With falling labor force participation, it's natural that jobs across the board are falling on a per capita basis," Hohman said.

So Hohman tested government employment and spending to other measures. First, Hohman checked total government jobs as a percent of employment.

As of July of 2012, government jobs made up 16.5 percent of the total U.S. workforce. The last time the percentage of government jobs was that low was August 2008, not the 1960s. It was as low as 15.7 percent in September 2000 and was 16.8 percent in December 2008.

In January of 2000, there were 20.8 million government workers at all levels. That number had climbed to 22.9 million in April of 2010. As of July of 2012, it is 21.9 million.

But Hohman also pointed out that fewer jobs don’t translate into spending less on government employment. Government compensation at all levels increased after being adjusted for inflation from $1.33 trillion in 2000 to $1.69 trillion in 2011, according to the Bureau of Economic Analysis. Government workers received 17.6 percent of all compensation in 2000 and 20.4 percent in 2011.

"Taxpayers also care about the cost of government workers," Hohman said. "They're picking up a larger bill for fewer workers."

Additionally, entitlement programs play a part in the size of government and are not specifically tied to employment, Hohman said.

For example, The Heritage Foundation reports that 67.3 million Americans depend upon federal government for housing, food, income or student aid. The report warns of an impending class warfare between those dependent on the government and those who pay for it.

Hohman points out that total government output when compared to the nation's gross domestic product — or the measure of all goods and services produced in the U.S. — was 13.2 percent last year. It peaked at 13.8 percent in 2009, the highest since 14 percent in 1993.

Michigan’s numbers mirror the national data.

As of June 2012, all government jobs in Michigan made up 15.2 percent of the workforce, the lowest since July of 2005. Government jobs in Michigan accounted for 17.5 percent of all compensation in the state in 2011. That number was 16.6 percent in 2007.

"You'd have to squint and turn your head to see the size of government as anything less than expansive," Hohman said.


TOPICS: Business/Economy; Government
KEYWORDS: federal

1 posted on 08/16/2012 7:56:55 AM PDT by MichCapCon
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To: MichCapCon

Per the link below, total gubmint spoending, as a percent of GDP was:

2011: 40%
2010: 41%
2009: 43%
2008: 37%
2007: 35%
2006: 35%
2005: 35%
2004: 35%
2003: 35%
2002: 35%
2001: 33%
2000: 33%
1999: 33%
1998: 33%
1980: 34%
1970: 31%

Ignore all this talk about smaller government. All that shows is that fewer people are getting paid more.

http://www.usgovernmentspending.com/total_2011USpt_88ps5n


2 posted on 08/16/2012 8:01:59 AM PDT by lacrew (Mr. Soetoro, we regret to inform you that your race card is over the credit limit.)
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To: MichCapCon

The point is, the number of clerks is gone but the number of policy and regulation nazis is way up.

See, Obama was right in his analogy about the tellers being replaced by ATMs except he was thinking of all the file clerks who are gone having been replaced by “technical experts and regulation writers and enforcers”.


3 posted on 08/16/2012 8:05:08 AM PDT by Mouton (Voting is an opiate of the electorate. Nothing changes no matter who wins..)
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To: MichCapCon

Life is tough. It is tougher when you are stupid.
You count the number of employees. PERIOD. If that number is higher then ever before then you have bigger Government. But when your Government sucks it really doesn’t matter what the size is...............


4 posted on 08/16/2012 8:12:55 AM PDT by SECURE AMERICA (Where can I sign up for the New American Revolution and the Crusades 2012?)
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To: Springman; Sioux-san; 70th Division; JPG; PGalt; DuncanWaring; taildragger
I don't think so.

If anyone wants to be added to the Michigan Cap Con ping list, let me know.
5 posted on 08/16/2012 8:13:13 AM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: MichCapCon

Historical Federal Workforce Tables

Total Government Employment Since 1962 1

(numbers in thousands)

Year Executive branch civilians (thousands) Uniformed military personnel (thousands) Legislative and judicial branch personnel (thousands) Total Federal personnel (thousands)
1962 2,485 2,840 30 5,354
1963 2 2,498 2,732 30 5,260
1964 2 2,470 2,719 31 5,220
1965 2,496 2,687 32 5,215
1966 2,726 3,129 33 5,888
1967 2,968 3,413 34 6,416
1968 3,020 3,584 35 6,639
1969 3 3,040 3,499 36 6,575
1970 4 2,944 3,104 38 6,085
1971 4 2,883 2,752 40 5,675
1972 2,823 2,360 42 5,225
1973 2,781 2,289 44 5,113
1974 2,847 2,198 46 5,091
1975 2,848 2,164 49 5,061
1976 2,833 2,119 50 5,002
1977 2,840 2,112 53 5,005
1978 2,875 2,099 55 5,028
1979 2,823 2,063 53 4,939
1980 4 2,821 2,090 55 4,965
1981 4 2,806 2,122 54 4,982
1982 2,770 2,147 55 4,972
1983 2,820 2,163 56 5,039
1984 2,854 2,178 56 5,088
1985 3,008 2,190 58 5,256
1986 2,966 2,206 55 5,228
1987 3,030 2,213 58 5,301
1988 3,054 2,176 59 5,289
1989 3,064 2,168 60 5,292
1990 4 3,067 2,106 61 5,234
1991 4 3,048 2,040 64 5,152
1992 3,017 1,848 66 4,931
1993 2,947 1,744 66 4,758
1994 2,908 1,648 63 4,620
1995 2,858 1,555 62 4,475
1996 2,786 1,507 61 4,354
1997 2,725 1,439 62 4,226
1998 2,727 1,407 62 4,196
1999 2,687 1,386 63 4,135
2000 4 2,639 1,426 63 4,129
2001 4 2,640 1,428 64 4,132
2002 2,630 1,456 66 4,152
2003 2,666 1,478 65 4,210
2004 2,650 1,473 64 4,187
2005 2,636 1,436 65 4,138
2006 2,637 1,432 63 4,133
2007 2,636 1,427 63 4,127
2008 2,692 1,450 64 4,206
2009 2,774 1,591 66 4,430
2010 4 2,776 1,602 64 4,443

6 posted on 08/16/2012 8:13:49 AM PDT by Theoria (Rush Limbaugh: Ron Paul sounds like an Islamic terrorist)
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To: Mouton

I don’t believe the EPA had any regulatory power when they wee first formed. Education was local, cheaper, and far superior to what it is today.


7 posted on 08/16/2012 8:16:18 AM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: MichCapCon

It’s even simpler when you understand that federal contractors aren’t counted as federal “employees”. The better measure is indeed government spending, not the number of the people classified as “employees”.


8 posted on 08/16/2012 8:17:01 AM PDT by kevkrom (Those in a rush to trample the Constitution seem to forget that it is the source of their authority.)
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To: lacrew
Quite a jump in 2009 relatively speaking.

With today's political rhetoric even a large increase can be considered a decrease as we have see with the unemployment numbers too.

9 posted on 08/16/2012 8:17:27 AM PDT by EGPWS (Trust in God, question everyone else)
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To: kevkrom

In simplest terms.

If you have people to check to make sure bathroom mirrors aren’t a quarter inch too high or low, You got too damn much government. PERIOD.


10 posted on 08/16/2012 8:22:50 AM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: Theoria

Nice graph

Looks like the military personell got replaced by government workers ....

Smaller government my ass...


11 posted on 08/16/2012 8:43:51 AM PDT by Popman (In a place you only dream of Where your soul is always free)
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To: kevkrom

AHA!!!

You’re on to the dirty little secret of the Federal Government. There is more work to be done (regulations).

If there are fewer federal employees; then there must be more civilian contractors to do the work.

Then we (the taxpayers) pay for salary + benefits PLUS overhead PLUS profit!!!


12 posted on 08/16/2012 8:44:14 AM PDT by catman67
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To: catman67
Then we (the taxpayers) pay for salary + benefits PLUS overhead PLUS profit!!!

On the other hand, I'd be willing to bet that actual productivity per dollar spent is higher amongst the contracting folks than the direct employees.

13 posted on 08/16/2012 8:47:34 AM PDT by kevkrom (Those in a rush to trample the Constitution seem to forget that it is the source of their authority.)
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To: kevkrom
On the other hand, I'd be willing to bet that actual productivity per dollar spent is higher amongst the contracting folks than the direct employees.

I think it depends on whether the contractor works for government on a regular basis.

When our post office had to put in a concrete pad big enough to park 3 cars on, they couldn't hire the guy down the street at a bargain. They had to go to a diversity approved contractor 70 miles away in Detroit at top dollar. It took the arab contractor 3 weeks to do an afternoon's work and they didn't even finish the job.
14 posted on 08/16/2012 9:05:09 AM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: MichCapCon

Perhaps the report should include contractors directly paid by the governments (Federal, State, and local)


15 posted on 08/16/2012 11:45:55 AM PDT by griswold3 (Big Government does not tolerate rivals.)
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