ECON 103 Chapter Notes - Chapter 6: Majority Rule, Government Spending, Government Failure
9 Jan 2017
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Document Summary
The size and growth of the us government: The us government, especially the federal government, has rapidly expanded over time. Spending accounted for only 9. 4% of the gdp in 1930; only. 1/3rd of this spending was at the federal level. Govt. spending, especially at the federal level, soared from 1930-1980. 9. 4% of gdp in 1930 to 32. 8% in 1980. After remaining constant between 1980 and 2000, govt. spending increased 38% between 2000 and 2012. The major categories of federal spending are health care, social security, national defense, and other transfer payments. The major categories of state and local spending are education, administration, and public welfare. Transfer payments: payments to individuals or institutions that are not linked to the current supply of a good or service by the recipient. Social security, unemployment benefits, and welfare are examples of transfer payments. Competitive behavior is present in both the market and public sectors.
