Size and growth of government (cid:894)co(cid:374)t"d fro(cid:373) last week(cid:895) Can try to determine size by examining government expenditures as a % of the gdp, but it is important to know what money is being spent on as well. War and military expenditures increase during times of global conflict during world wars, expenditure increased. Social conscience/entitlement society became less tolerant of the idea that some people cannot pay to care for themselves, resulting in a more generous welfare state to provide for lower-income groups. Technological change, like automobile advancement, means the government needs to invest in things like roads and training, as well as hiring more skilled workers to manage equipment. Population growth and urbanization puts pressure on services like transportation, sanitation, fire and police services in concentrated areas. Keynesian theory has encouraged the government to play a more prominent role in managing the economy through stimulating and withdrawing as necessary.