expat_panama
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- Apr 12, 2011
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...Total government spending now exceeds 40% of GDP. Federal regulations now cost the private sector an astounding $1.7 trillion per year, or 12% of total output. That means that the governing elite now control more than 50% of the income produced by the American people to spend and distribute as they and lobbyists for powerful political and economic interests see fit.
As a result the U.S. has fallen to 10th place, its lowest rank on the Index of Economic Freedom, since the inception of the Index in 1995, down from fifth place in 2007. Moreover, the scheduled 2013 increase in tax rates and regulatory burdens means the U.S. is on course to drop to new lows in the years ahead.
In general, countries with declines in economic freedom experience slower economic growth while those with increases in economic freedom experience faster growth. Since 2007, the U.S. decline is associated with a significant expansion of government spending as a share of GDP, increased control of financial institutions, a loss of freedom among individuals and businesses to invest without government interference, an erosion of property rights, and an increase in corruption.
The increase in the scope and power of the government over the economy has suppressed private sector economic activity.
Excerpt. Read more at To Restore Prosperity, We Must Increase Economic Freedom - Forbes.