DC Continues Its Explosive Growth

spending

Photo Credit: 401(K) 2013

Adjusted for inflation, federal spending has gone up from an average of $882 billion every year in the 1980s to $1.48 trillion a year in the ’90s to $2.44 trillion a year in the first decade of the 21st century. It’s estimated that the government will have spent as much in the first four years of the new decade as it did in all of the 1990s.

Two crises — the terrorist attacks of Sept. 11, 2001, and the so-called “great recession” — further propelled the growth of government in certain areas but without the commensurate cuts in other areas that earlier generations imposed in times of crisis.

“In the past when there were various crisis like World War II or the Korean War, non-defense spending was dramatically cut by 20 to 30 percent,” Schatz said. “That didn’t happen after 9/11, and it certainly didn’t happen after the financial crisis.”

Nothing typifies the expansion of government like the growing wealth of the Washington, D.C., area. The region has few natural resources and little manufacturing base to produce wealth, yet seven of the nation’s 10 richest counties surround Washington. The average government worker’s compensation now stands at over $126,000 a year. And the fact that Washington’s traffic congestion now ranks as the nation’s worst stands as more evidence of the region’s growth.

As the rest of the country suffered through the recession with layoffs and foreclosures, Washington’s work force and its home prices remained mostly stable.

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