$11 Billion Gratuity Added For Parties of 100 Million Or More

Sing with me:

How big is government?  Soooooo big.

The Treasury Department released what might at first be taken for good news today - namely that the federal government swung to a surplus (an $11 billion dollar surplus) in December for the first time in three years.  (Actually, I don't want to gloss over that too much.  It is good news and a big deal that - despite presistently pricey oil, hurricane-induced employment shocks, and multiple ongoing military engagements - we're no longer deficit spending.  Not in December anyway.  Note that I don't include "tax cuts" in the list of fiscal headwinds; one does well to recognize that the pro-growth fiscal policy enacted in recent years has in fact directly and considerably contributed to our increased economic flexibility and our expanding tax revenue base.)

But back to the caveat.

The Treasury report also showed that both government taxation and government spending are at all time highs.  Tax revenues grew by more than 12% year-over-year, which is great, in that the economy is strong enough to throw off more revenue, even as tax rates have declined (thanks, Art Laffer).  But monthly spending increased 5.6% over the year-ago period, to $231 billion, which is less great.  To put it in perspective, the cost to operate the federal government is $16 million per hour higher than it was just a year ago.

"Today it is not big business that we have to fear. It is big government."
- Wendell Phillips