If we are not yet at Peak Debt, we are getting close, and that means we are also getting close to Peak Government.
Have we reached Peak Government? That is, a structural point beyond which government can no longer grow sustainably?
To help answer the question, I’ve assembled charts of the foundations of growth: population, gross domestic product (GDP), private employment and output per person (i.e. productivity). These have grown 28%, 75%, 28% and 58% respectively. (I have used 1990 as a baseline, as the past 23 years gives us a reasonably accurate clue as to the long-term trendlines of the current economy.)
In other words, if growth depended entirely on population growth, the real (inflation-adjusted) economy would have grown 28% since 1990. Instead, the GDP rose by 75%. This is the result of rising output per person, i.e. an increase in productivity.
- Want to see what’s ahead for America’s young? Pay attention to what’s already happened in Japan (dangerousminds.net)
- Population growth increases climate fear (sfgate.com)
- The Government Shutdown Looms: A Q&A On What Happens Next (financialsurvivalnetwork.com)