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Text I Government dominates nearly half our economy - Compar 8656

Text I

Government dominates nearly half our economy - Compared to much less before


            This chart shows how government spending increased faster than the economy - depressing the share of the economy left over for the pure private sector.

            The grey bars in this chart show the upward march of combined government spending growing faster than the economy.

            The black bars in the chart show the reciprocal downward slide of the private sector's share of the economy.


            Should we recognize our principle and stand up for limited government, or should we allow government to control more than today's 48% of the economy?

            The government sector has grown about 4 times faster than the economy since I was young. Nearly all the increase was consumptive social spending, a category not included by the framers of the Constitution among the four for government. Federal spending increased 10 times faster than the economy, and state & local government spending two to threefold, while national debt exploded. America is a significantly more socialized, government spending-dependent nation (and less a free-market society), than before. Yet, it is the private sector upon which we depend for generating real long-term improvements in family incomes and savings, which have not advanced in 2 ½ decades, and for strong positive trade balances, instead of negative ones.


Text II



Brazil won't limit foreigners in Telebras sell-off

            BRASILIA, May 15 (Reuters) - The Brazilian government will not restrict participation of foreign capital in the privatization of huge telecommunications holding Telebras, a Communications Ministry official said Friday.

            "There will be no restrictions on foreign capital. None," the spokesman said.

            Still, foreign companies involved in buying the 12 units of Telebras up for sale would be required to set up a local subsidiary and observe Brazilian law, the spokesman said.

            The decision was included in a decree signed by Brazilian President Fernando Henrique Cardoso on Friday. It is due to be published in the government's official daily gazette Monday.

            Many industry analysts had expected the government to set some restrictions on foreign capital in the sale of eight cellular companies to be set up ahead of the privatization.

            As well as the eight cellular companies, the government will group Telebras' fixed-line assets into three regional holdings for privatization. Also for sale is Embratel, Telebras' long-distance and international carrier.

            The government has set July 15 as a tentative sale date for the privatization. It expects to earn between $ 15 billion and $ 20 billion for the 12 units in what could be Latin America's biggest ever privatization.



According to the texts, judge the following item.

The US Constitution outlines 4 main areas of government responsibility.

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