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Another figure I like to focus on it's public spending as percentage of GDP. In 2020, the U.S. government has spent 46.18% of the total GPD. Which means almost

Another figure I like to focus on it's public spending as percentage of GDP. In 2020, the U.S. government has spent 46.18% of the total GPD. Which means almost half of every economic activities in the U.S. were directly spent by the government. I think it's a more interesting number than debt or taxation as you can immediately see how much the government controls the economy whereas debt and taxation are just technically playing the money supply at the end of day.

dragonwriter 5y ago
> In 2021, the U.S. government has spent 46.18% of the total GPD. Even for Fiscal Year 2021 (which ends tomorrow), we won't have solid GDP numbers for a while, so that's at best speculative, and higher than most projections I’ve seen (most of which are down several points from 2020, which was a little below that.) If the reference is to calendar year 2021 (which is the most natural unqualified reference), its even more speculative, as there is a day more than a full quarter of the year left. > Which means almost half of every economic activities in the U.S. were directly spent by the government. No, it doesn't. While GDP is the most common current measure of economy size, and may vary in proportion to total economic activity, it by design does not capture all economic activity. GDP measures end-purchaser value of production, not total economic activity. Lots of economic activity is (for instance) resale, which doesn't matter to GDP.
- hartator 5y ago
  > Even for Fiscal Year 2021 Sorry meant 2020. The number is from wikipedia and is not speculative as far as I know: https://en.m.wikipedia.org/wiki/List_of_countries_by_government_spending_as_percentage_of_GDP https://en.m.wikipedia.org/wiki/List_of_countries_by_governm... > Lots of economic activity is (…) resale, which doesn’t matter to GDP. The government reported expenses don’t included internal resale as well. GDP and public spending will go to infinite if it does, I fail seeing why it’s relevant here?

dragonwriter 5y ago

> In 2021, the U.S. government has spent 46.18% of the total GPD. Even for Fiscal Year 2021 (which ends tomorrow), we won't have solid GDP numbers for a while, so that's at best speculative, and higher than most projections I’ve seen (most of which are down several points from 2020, which was a little below that.) If the reference is to calendar year 2021 (which is the most natural unqualified reference), its even more speculative, as there is a day more than a full quarter of the year left. > Which means almost half of every economic activities in the U.S. were directly spent by the government. No, it doesn't. While GDP is the most common current measure of economy size, and may vary in proportion to total economic activity, it by design does not capture all economic activity. GDP measures end-purchaser value of production, not total economic activity. Lots of economic activity is (for instance) resale, which doesn't matter to GDP.

hartator 5y ago
> Even for Fiscal Year 2021 Sorry meant 2020. The number is from wikipedia and is not speculative as far as I know: https://en.m.wikipedia.org/wiki/List_of_countries_by_government_spending_as_percentage_of_GDP https://en.m.wikipedia.org/wiki/List_of_countries_by_governm... > Lots of economic activity is (…) resale, which doesn’t matter to GDP. The government reported expenses don’t included internal resale as well. GDP and public spending will go to infinite if it does, I fail seeing why it’s relevant here?