Opportunity cost of government

Economists argue that all of our choices have an opportunity cost.  Government spending is no exception to this basic economic principle.  Except that the opportunity cost of a dollar spent by government is always greater than a dollar spent by an individual.  Why?  Well, the government could spend a tax dollar on education the opportunity cost of which might be spending that tax dollar on highways.  In addition, we have to consider that the government first had to tax the dollar away from the individual and we have to ask how that person would have spent it.


The deficit and debt have been increasing dramatically over the last decade.  The congress increased the debt ceiling 10 times between June 2002 and February 2010.  In 2009 the federal debt held by the public was 53% of the GDP.  With TARP and stimulus programs one must wonder how else could this money have been spent, and what is it costing YOU?  


Now you can know. The Independent Institute has launched the Government Cost Calculator.


"Unlike total or “per capita” government debt calculators currently available, the Calculator personalizes government spending, enabling you to see how much federal programs are costing you now and how much they will cost you in the future. Simply input your age, education level, and income to immediately see the dollar amount of your federal tax payments. You can choose to view your total lifetime federal tax payments or narrow the results according to those areas that concern you most, such as national defense, farm subsidies, or Social Security."


Perhaps with this calculator individuals will realize the large opportunity cost of government spending, and understand that as the federal government continues to grow it hampers the ability of the private sector to grow.