Imagine an alternate reality where the first term of President Barack Obama coincided with one of the greatest periods of government austerity in recent memory. Imagine total government spending under his watch had the steepest annual decline in three decades. Imagine total government employees fell by the fastest rate in more than 60 years. Imagine that in his last two years, federal spending and federal employment grew by the slowest annual rate since the 1950s.
"The real collapse of spending has been at the level of state and local public services and investments," Hersh said. "Even as the economy grew 4.2% since the start of the Obama administration, state and local spending contracted 5.2%." Here's the graph he shared with The Atlantic. The plunging green line tracks change in nondefense state and local spending since Obama took office.
What's the matter with shrinking government? Nothing at all, you might say. State and local governments are expensive and inefficient, and those workers might be put to better use making things rather than regulating things. Fair enough. But with interest rates now at historical lows, it's a little surprising that we're choosing this moment to not borrow more money from eager investors to spare total government from its own sharp knives and make downpayments on things we know we need, like roads and broadband. President Obama isn't fully responsible for this era of premature and self-inflicted austerity. He's the president of the United States, not the states, themselves. But, for better or worse, it's his record now. Who would have guessed?
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