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14.2 Federal Expenditures
Policies and programs on which gov't spends changes over time.
Expenditures rise over time.
Big Governments, Big Budgets
Growth has been dramatic. Now, gov't spends 1/3rd of GDP
Citizens like government services
Public sector expands in response to public's preferences and changes in economic and social conditions that affect the public's level of demand for government activity.
Rise/Decline of National Security State
Military budget was huge to supply war needs.
Now, budget of Department of Defense is only 1/5th of all federal expenditures
Rise of the Social Service State
The biggest slice of the budget pie, once reserved for defense, now belongs to income security expenditures, policies extending aid to the elderly, the poor, and the needy.
Provides a minimal level of sustenance. Also includes disability disability insurance.
Provides both hospital and physician coverage
-Social Security is less an insurance program than a kind of intergenerational contract.
Aging population - puts a higher burden on current working members.
-Incrementalism causes higher budget each year
-Uncontrollable expenditures (such as entitlements, which are not determined each year)
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