A government big enough to give you all you want

It's not Republican, it's not Democrat. Honestly, it's not liberal, it's not conservative ... It's economics," says Economist Art Laffer. "If you tax people who work and you pay people who don't work, don't be surprised when you get a lot of people not working. -- Art Laffer

Previously, with the help of Hauser's law, we looked at the revenue available to government through taxation.

Hauser's law neatly shows that the amount of money available to the government is nearly constant, irrespective of tax rates. If the relationship holds, the amount of revenue is always going to be about 19% of GDP. When faced with this information, wouldn't it seem appropriate to focus on increasing GDP as a way to increase revenue?

The hidden time bomb in this relationship is the realization that there is only 19% of blood that can be squeezed out of the income of the people. However, the government has ways to spend more than they take in.

But, you can also chart government spending as a function of GDP.

The spending has blown past 19 %, and may never look back. Does everyone see where this is going?