State Capitalism Anyone?

Many see the United States as the embodiment of entrepreneurial, flexible and innovative capitalism. Carl Schramm and Robert Litan of the Kauffman Foundation argue that the U.S. is an innovative mix of entrepreneurial and "big-firm" capitalism. But according to one recent analysis government plays a massive role in the US economy. The latest issue of Reason (pointer from Arnold Kling) cites a study by economic consultant Gary Shilling which shows that:.

More than half of all Americans--53 percent--now depend on government for their income. In 1950 the figure was just 28 percent...Shilling totaled up federal, state, and local government workers, plus private-sector workers who owe their jobs to government, plus recipients of Social Security, other transfer payments, and benefits such as food stamps. He also tacked on dependents...adjusting his figures to avoid double-counting...

Kling adds a pointer to Mark Trumbull's piece on Schilling's analysis in the Christian Science Monitor.

Comments

[Wendy]

I wonder how much of that is defense department related?

[Joeventures]

Hearing what I hear about the Reason Foundation's tendency to adjust numbers to fit their conclusions on transportation policy, I tend not to believe them on other "analyses."