I thought this should be pulled into its own thread (I may add to it now and then). Several times the thesis has been put forward that we had a “golden age” in America, usually around 1960 or so. When America was “thriving.” The theory seems to be in some quarters that this was due to the generous involvement of government and liberal ideas back then.

This article was one of the original triggers for the discussion. At the time it was linked here, I discovered that in every category bemoaned in the article, government spending in constant dollars had usually increased, sometimes a little, sometimes drastically. In no cases had it been reduced.

How much government do we have now? How much did we have in the good old days of 1960?

No Medicare taxes in 1960. Social Security taxes on workers were less than half what they are now.

1960 Federal budget, in constant 2008 dollars, was less than a fifth of what it is now. Federal deficit in 1960? $2.1 billion in 2008 dollars. The deficit now is 600 times that.

1960 Federal revenues, in 2008 dollars, $631 billion, or $3,500 per citizen, compared to the current $6,300 per citizen.

Percentage of Americans with health insurance in 1960: About 75 percent. Now, after trillions of dollars of government health care programs: 84 percent (the figure in my first post was not only wrong, but weird. I caught the mistake.)

(Numbers from Obama budget historical tables, Table 1.3)

Defense spending as a percentage of Federal budget, around 53 percent, over twice what it is now. (Table 4.2 in above link)

Per capita income in “thriving” 1960, in constant dollars, about half what it is now (Census figures only go back to 1967)

Education spending per student in 1960 (constant 2008 dollars): $2,741. In 2008: $11,134. A factor of four.

No food stamps.

No Department of Housing and Urban Development. No Federal Departments of Transportation, Energy, Education, or Veteran’s Affairs. No EPA. No Department of Homeland Security.

How the hell did we ever manage back in the age of “triumphant America?”