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If there wasn't billions of dollars spent on interest from accumulated debt, there were few tax loopholes, the government didn't bail-out or subsidize corporations, social spending was kept to a minimum (mostly focused on low-cost high results services), the military budget was kept to a reasonable size, taxes were low, regulations were focused and streamlined, and corruption was (practically) eliminated how many of these people would need a handout from the government?

As the government grows it needs dramatically higher taxes to support itself ...

At 10% of GDP the tax rate needs to be 11.1%
At 20% of GDP the tax rate needs to be 25%
At 30% of GDP the tax rate needs to be 42.9%
At 40% of GDP the tax rate needs to be 66.6%
At 50% of GDP the tax rate needs to be 100%

The difference between the GDP represented by government and the tax rate you need to charge to sustain it reflects the net drag on the economy.