2007-The Year Our Government Swallowed Free Enterprise


by Richard H. Frank

Article I, Section 8 of our Constitution grants congress the power to lay and collect taxes, duties, imposts and excises to pay the debts and provide for the defense and general welfare of the United States.

Over the past 70 years, the Congress and Executive branches of government have extended their power far beyond the intent of the Founders.  Social legislation with mandates that have resulted in unfunded obligations have increased the national debt by a multiple exceeding 23000 times since 1960.

Each piece of legislation increased the size and scope of government .  The cost to support this growth could only come from those sources enumerated in the Constitution.  Our nation, possessing the economic engine for growth of the gross national product (GNP) was able to support the insatiable appetite for spending that resided in Congress.  The unseen, insidious and probably unintended consequence of these actions was the shrinking gap between the GNP  producing private sector and the government sector  payrolls in the United States.

As the government sector grows, taxes on the private sector must be increased to support the growth in payroll   costs associated with bigger government or the nation’s GNP must grow to support these costs.

Today the average annual salary for government employees has ballooned to just under $79,000 while private sector is  just $41,000.  What is even more critical is the fact that government payrolls have exceeded the private sector manufacturing and construction segments in 2007 and continue to rise out of control.

Government contends that the increases in productivity in American will be sufficient to control the revenue gap between the private and government segments of the economy. The fallacy to this argument is that productivity increases are not infinite, and if we treat them as such, we will destroy free enterprise and kill the goose that laid the golden egg.

Like a snake that swallows its own tail, government will slowly devour the producing free enterprise system until it can no longer support itself.  Should this happen we will have transformed the United States of America from a free democratic Republic to a tyrannical marxist country.

Pending legislation like Cap & Trade, Immigration Reform and government controlled health care represents  three more bites by the big government serpent in devouring itself and the eventual demise of our Republic.  Stand up and say “NO” to our elected representatives who support this slow suicide for our nation!


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