Interesting article on taxes

[GG]

I'm not talking about the ability to obtain financing; I'm talking about the willingness to spend. It's demand that drives the economy. Downswings occur because spending (demand) slows down--either businessess, consumers, or both reduce spending. Government spending never slows down, and in fact speeds up during a downturn. The scope of capital availability means nothing if businesses and consumers "hunker down" and stop spending in a risky environment.

 

In 1929 government spending relative to gdp was 1.2%; it's now almost 20%. Large government has stabilized demand; that's the reason for less severe downturns.

 

I'd like to see the source of that data, as it appears extreme. If a big part of the 20% is SS, then you have to factor the SS taxes that are going out of the economy as well.