In this week's Liberty Update, we highlight how the Trump Administration's Department of Government…
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Image of the Day: The Vast Federal Bloat That DOGE Targets

In this week's Liberty Update, we highlight how the Trump Administration's Department of Government Efficiency (DOGE) is finally confronting the bloated federal workforce, which includes malfeasant officials like former Internal Revenue Service (IRS) agent Lois Lerner.  In that vein, our friends at Unleash Prosperity offer a visual today on just how vast and bloated that federal workforce has become:

[caption id="" align="aligncenter" width="541"] What DOGE Confronts[/caption]

 …[more]

March 06, 2025 • 10:13 AM

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While Federal Spending Hit New Record in 2011, Washington, D.C. Became America’s Wealthiest City Print
By Timothy H. Lee
Thursday, October 20 2011
Incoming federal revenues have actually remained fairly stable in recent years. The problem is that spending spun out of control in 2009, 2010 and now 2011.

Here’s an irony.  How is it that the only location in America immune from belt-tightening lies within the actual Beltway itself? 

According to the Congressional Budget Office (CBO), the federal government just spent a new record $3.6 trillion during fiscal 2011. 

If that leaves you insufficiently insulted, the Census Bureau separately announced this week that Washington, D.C. leapfrogged tech mecca San Jose, California as the wealthiest metropolitan area in the United States.  As aptly summarized by The Wall Street Journal in its news report: 

“Washington, D.C. nosed out San Jose, California as the nation’s highest-income metropolitan region, fueled mainly by its army of attorneys, consultants, lobbyists and outside government contractors.” 

Still not furious?  Well, Senate Majority Leader Harry Reid (D – Nevada) took to the Senate floor this week demanding even more spending and proclaimed, “It’s very clear that private sector jobs have been doing just fine, it’s the public sector jobs where we’ve lost huge numbers.” 

First, some perspective on the new federal spending record. 

Incoming federal revenues have actually remained fairly stable in recent years.  The problem is that spending spun out of control in 2009, 2010 and now 2011. 

Just four years ago in 2007, the federal government took in approximately $2.57 trillion while it spent $2.73 trillion, for a deficit of just $161 billion.  In comparison, the government took in slightly less in 2011, $2.30 trillion, but spent enormously more, $3.60 trillion, for a deficit of $1.3 trillion. 

In other words, allegations that the Bush-era tax cuts or Iraq and Afghan wars somehow caused three consecutive deficits exceeding $1 trillion under Barack Obama are false.  In fact, receipts actually increased in the years following the 2003 tax cuts that liberals now scapegoat, reaching their all-time peak in 2007.  What has instead changed is the sheer enormity of federal outlays.  We now spend almost $1 trillion more than in 2007 – the last fiscal year in which Republicans controlled Congress and the White House, by the way – and that accounts for today’s unsustainable deficit levels. 

Since 1970, in fact, federal spending per household has more than doubled, and has grown more than ten times faster than median household income during that time. 

Yet what do we have to show for all of that uncontrolled spending?  The same old problems, but with a lot more debt. 

Upon taking office in 2009, the Obama Administration projected that its massive spending “stimulus” would keep unemployment below 8%, and reduce it to approximately 6% today.  Instead, the rate quickly ascended to 10.1%, stands at 9.1% today and has exceeded that false 8% ceiling for an all-time record 32 consecutive months. 

Bear in mind that the recession officially ended over two years ago in June 2009. 

The nation’s capital, however, continues to flourish.  Populated by a density of attorneys, lobbyists, government workers and outside contractors, its median household income reached approximately $85,000 last year.  That compares to the national average of approximately $50,000, and D.C.’s 6% unemployment rate lies well below the nationwide 9.1% rate. 

Moreover, your taxes are subsidizing a remarkably comfortable lifestyle for federal workers themselves.  According to Tina Korbe of hotair.com, “After controlling for differences in education, experience, occupation and other observable characteristics, federal employees earn hourly wages 22 percent higher than those of comparable private-sector workers.”  Additionally, she adds, “The average federal employee’s benefits package is also greater than a comparable private-sector worker’s – by about 30 to 40 percent.” 

Yet leave it to Harry Reid, the same man who announced in the spring of 2007 that the Iraq war “is lost” just as it was being won, to call for even more federal spending and lament the alleged plight of government workers. 

The truth is that private sector employment has declined by 2.5 million since 2008, from 111.8 million to 109.3 million.  How does that constitute “doing just fine?” 

Outside of Washington, D.C., families continue to suffer and tighten their belts.  Meanwhile, Obama, Reid and other liberals demand even higher spending and taxes, never satiated. 

Only when we finally reverse that dynamic and reduce federal spending will the nation as a whole achieve more lasting prosperity. 

Notable Quote   
 
"Few things are so unhelpful as the journalist who buries the lede.There has been a lot of that lately, especially insofar as the Trump administration's mmigration crackdown is concerned.Take, for example, the case of the Georgetown University researcher arrested in Virginia last week over his alleged ties to terrorism. Badar Khan Suri reportedly spread Hamas propaganda online while having 'close…[more]
 
 
— Becket Adams, Program Director for the National Journalism Center
 
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