Government employment is increasing relative to private employment, but only moderately, not explosively, yet the deficit is exploding. Part of this comes from what Doc Zero calls the remora economy. Private businesses attach themselves to the state, and the state attaches nominally private businesses to itself and commands them to serve its political objectives.
The private businesses make corrupt profits from their state connection, and the state creates costs that are nominally off budget, as for example, the health crisis and the recent financial crisis which was primarily a crisis of affirmative action loans. Government regulatory intervention in the economy is exploding, creating a multitude of invisible taxes, off budget expenditures, and opportunities for corrupt profits by semi private businesses, such Al Gore becoming a billionaire from carbon credits.