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.
Further Explanation
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 spendingMandatory spendingInterest 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 sectorTo support some particular industries by giving out subsidiesTo redistribute incomeTo strengthened the economyTo promote social welfare for the citizens
However, there are two main sources of government spending, these include
TaxGovernment borrowing
Thus, the US government's expenditures increased rapidly in the 30 years between 1980 and 2010, rising to about 3.5 trillion dollars.
LEARN MORE:
The level of service exports worldwide increased more than between 1980 and 2010 The price of imported oil rises. If the government wanted to stabilize output, which of the following could it do?
KEYWORDS:
dollarsincreasedrapidly