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Mike Lee@BasedMikeLee Ā· Jun 7, 2025

šŸ§µ 1/ Until the 1930s, state and local governments outspent the federal governmentā€”combined. In 1900, states andā€¦

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Summary

This thread traces how the federal government's share of spending grew from 2.7% of GDP in 1900 to 55% by 2019, arguing this represents unconstitutional centralization of power away from states and localities. The author advocates returning fiscal authority to states and communities through cutting federal mandates and reforming entitlements.

Summarized by ThreadOut AI from the full thread. May miss nuance ā€” read the thread below.

  1. #1

    šŸ§µ 1/ Until the 1930s, state and local governments outspent the federal governmentā€”combined. In 1900, states and localities handled most public services, from schools to roads. Federal spending was a measly 2.7% of GDP, while state and local was higher.

  2. #2

    2/ This wasnā€™t just numbersā€”it was principle. States and localities were closer to the people, responsive to local needsā€”and indeed most needs. The federal government stepped in mainly for things like defense and trade. Limited scope, limited spending. Thatā€™s how the Founders designed it.

  3. #3

    3/ The tide turned with the New Deal in the 1930s. Federal spending surged past state and local combined and didnā€™t look back. World Wars and Great Depression policies centralized power, disregarding the Constitutionā€™s strict limitations on federal authority. By 2019, feds spent 55% of all government funds, states and locals just 45%.

  4. #4

    4/ Why the shift? There are now few limits on federal power. Also, so-called ā€œmandatoryā€ expenses (mostly entitlements) now eat up two-thirds of federal budgets, dwarfing state priorities and even other federal priorities. Federal grants to states have also tied local hands.

  5. #5

    5/ The result? A bloated federal machine, distant from citizens, accumulating a national debt soon to reach a staggering $37 trillion. (This happens because, unlike the states, the U.S. government controls the money supply, which it constantly increases by borrowing more money). States, once the heart of governance, are now junior partners, begging for federal crumbs. This isnā€™t freedomā€”itā€™s dependency.

  6. #6

    6/ We need to reverse this, restoring state and local primacy in spending. How? Slash federal mandates, reform entitlements, and power to the states and localities, which are closer to the people. Let communities decide their own prioritiesā€”schools, hospitals, roadsā€”not D.C. bureaucrats.

  7. #7

    7/ States are laboratories of democracy. Theyā€™re closer to the people, more accountable. Federal overreach has crushed innovation and ballooned deficits. In 2024, federal spending hit 24% of GDP, while state and local hovered at 17%. Time to return that ratio to its proper proportions.

  8. #8

    8/ The Founders understood that centralized power corrupts. They gave states the lead for a reason. Letā€™s honor that vision: cut federal spending, empower states, and restore the balance that made America thrive. Whoā€™s with me?