Obama’s proposed budget is $3.6 trillion of spending. That’s $11,842 for each of us or $25,714 for each individual tax return filed. It’s also about 28% of the national economy. Any way you cut it, it’s big and dangerous.
To concentrate 28% of the economy in the hands of so few is dangerous. This converts the incentives around 28% of the spending of the economy from value-based, “is-it-worth-it?” decisions made by the parties involved to third parties spending other people’s money motivated by wanting to appear helpful. The former transaction generates much more benefit for society than the latter, despite what some economic adviser’s math model suggests. The latter is more likely to destroy value.
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