The US government's expenditures increased rapidly in the 30 years between 1980 and 2010, rising to about 3.5 trillion dollars.
The levels at which the government spends is one the major tool in fiscal policy. The government normally increases its spending to promote the economy. If the government increases its spending, it will have a positive impact on the country’s Gross domestic product.
<h2>Further Explanation</h2>
Also, increased government expenditures will help the country to recover quickly from the recession.
Government spending is money that is spent by the public sector to acquire goods and also to provide services such as healthcare, education, defense, etc.
Government expenditure is classified to three, which are
- Discretionary spending
- Mandatory spending
- Interest on debt
Each year, the United States government earmarks some funds to education, health, defense and many more.
Government allocates funds for this sector to achieve the following:
- To provide goods and services for the public sector
- To support some particular industries by giving out subsidies
- To redistribute income
- To strengthened the economy
- To promote social welfare for the citizens
However, there are two main sources of government spending, these include
- Tax
- Government borrowing
Thus, the US government's expenditures increased rapidly in the 30 years between 1980 and 2010, rising to about 3.5 trillion dollars.
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KEYWORDS:
- tax
- government
- expenditures
- trillion dollars
- increased
- rapidly
