That spending is on national security - as the defense budget ballooned after 9/11. This is consistent with neoliberal ideology since the state should only be centered on its function of military defense. But otherwise, government spending in all other sectors has not changed much since Reaganomics (despite Clinton's attempts to destroy it).
Not true. When you look at the changes in government spending as a percentage of GDP, you don't see some huge change right around the time of the Iraq War. Rather, you see a steady increase, going from it being less than 5 - 10% around 100 years ago, up to about 25% - 30% today. In some countries (like France) government spending as a percentage of GDP is at approximatly 50%.
For example, the war costs approximately 4.5% of GDP (which is definitely not a small number) in 2007. Even social security is approximately 4.5% of GDP in 2007. Furthermore, social security spending as a percentage of GDP is projected to go up substantially over the next 50 or so years (like double).
You mentioned that the defense budget ballooned after 9/11 which is why you say that government spending as a percentage of GDP has increased. This is possible, but I am still skeptical. While I agree with you that the defense budget increased after 9/11, I imagine that other government programs might have decreased in regards to spending, so on the whole government spending is probably about the same.
Futhermore, you mentioned Clinton, who actually didn't spend that much. However, one must look at the likely reasons that this was the case. Namely that Republicans had control of Congress, and therefore, they weren't going to let Clinton spend as much as he probably would have liked. Now with George W the situation is different as Republicans had control of the Congress, so they let him get away with more. Some people even like to vote for President opposite of who controls Congress because they feel that it balances the power.
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