Question

Think about the major events that have happened in the U.S. in the past 100 years. Hypothesize how Federal spending has evolved across these categories during different time periods.

Answer 1

Answer:

The federal government expanded dramatically in the 20th century and has continued growing in the 21st. Between 1900 and 2012, federal government receipts increased from 3.0 percent of the economy’s output to 16.5 percent, and federal expenditures rose from 2.7 percent of economic output to 24.0 percent. State and local governments have also expanded relative to the rest of the economy, although not nearly as much as the federal government. Between 1930 and 2012, state and local government receipts grew from 8.0 percent to 13.0 percent of economic output, while their expenditures rose from 9.1 percent to 14.8 percent of output. For the overall government sector from 1930 to 2012, receipts increased from 11.1 to 26.4 percent of gross domestic product, (GDP) and expenditures rose from 12.1 to 35.6 percent of GDP.