OLD1953 wrote:Personally, I think anyone expecting less and smaller government after the crisis is dreaming. It will certainly be different government, but less government? I'll do one of Vinces challenges here, can anyone show me a single instance, in which a government did not collapse and get utterly replaced where the government got smaller after a crisis? [...] It's pretty rare for governments to downsize.
When the central government in the USSR collapsed the population sees a smaller government after the crisis. The empire layer of government was gone but you still had the country level. Many revolutions for independence throw off a layer of government and so the citizens have less load on them. Anguilla used to be part of a 3 island federation but while we sent taxes off with less than 10% of the total population Anguilla could never get the votes to spend money on Anguilla. But since the revolution we have not sent taxes off anywhere and things have been much better here. So while I agree that governments tend to grow over time, I think revolutions tend to reduce the total government.
So my hope/expectation is that when the US central government loses the power of printing money, because nobody will take it any more, it will either collapse completely or have to make drastic cuts. Spending twice what it gets in taxes will no longer be an option after hyperinflation. Much of the power of the Federal government over the states is by paying them to do what the Federal government wants. Once they can't pay with printed money they won't be able to control the states so much. So the Federal government just can't be so powerful if the money fails.
Oh, several European countries are making drastic cuts as part of this crisis. So some governments are getting smaller.
I think there is good evidence that a countries 10 year growth rate is better the smaller the government it has:http://pair.offshore.ai/38yearcycle/#governments
The following gave me a smile: