The Economic Lesson of the Day

I shall make this as short and simple as possible, because it really is that simple.

Labor force participation shows the percent of the population that CAN work, that actually DOES.

You will notice the dramatic increase after about 1968 which is 100% due (look it up, please dont' question me) to women entering the work force.

You will then see the dramatic decline since this latest recession began which is about 95% due to men leaving the workforce (look it up, please don't question me).

Ergo, I have this simple question to ask.

If more and more women entered the work force, this should then increase the economic growth of the country (which it did). If economic growth increased, then government revenues should have gone up (which it did). Thus, in theory, with "twice" the amount of the population working, yet no need to double infrastructure, double military spending, and other public goods, then government spending as a percent of our total output should DECREASE.

But it has not.

Matter of fact it has more than doubled.

Now, fellow junior, aspiring, deputy, official or otherwise economists I ask you the simple question...

why?

I know the answer, but the question is whether YOU know the answer.

And the answer is two fold.

It is also a very TRUE answer, which will make it an incredibly politically incorrect answer. But since we're in an economic crisis, methink the people are starting to realize the economic costs of being politically correct at the expense of being truthful and living in reality.

Answer away.