Post on 21-Dec-2015
Lectures in Macroeconomics- Charles W. Upton
Government Spending
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
Government Spending
Our Objective
• This is a descriptive section. Here, we present some data on what the government actually spends.
Government Spending
Our Objective
• This is a descriptive section. Here, we present some data on what the government actually spends.
• The discussion revolves around graphs showing government spending, usually as a percentage of GDP.
Government Spending
Government Spending 1959-2003
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000
As % of GDP
Government Spending
Government Spending 1959-2003
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000
These data include both (a) government purchases of goods
and services and (b) transfer payments
Government Spending
Govt. Consumption 1959-2003
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
0.2
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
As % of GDP
Government Spending
Govt. Consumption 1959-2003
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
0.2
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
This series is relatively constant.
Government Spending
Govt. Transfer Payments 1959-2003
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
As % of GDP
Government Spending
Govt. Transfer Payments 1959-2003
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
This series is not.
Government Spending
The Devil is in the Details
• Federal and State Breakdown
• Defense and non-defense spending
Government Spending
Federal Spending 1934-2003
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
1934 1938 1942 1946 1950 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002
As % of GDP
Government Spending
Federal Spending 1934-2003
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
1934 1938 1942 1946 1950 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002
KoreaWW II
Government Spending
Federal Spending (1965-2003)
0.0
5.0
10.0
15.0
20.0
25.0
1965 1969 1973 1977 1981 1985 1989 1993 1997 2001
This series is relatively constant.As % of GDP
Government Spending
Federal Non-Defense Spending (1965-2003)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
1965 1969 1973 1977 1981 1985 1989 1993 1997 2001
This series is not.As % of GDP
Government Spending
Federal Non-Defense Spending (1965-2003)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
1965 1969 1973 1977 1981 1985 1989 1993 1997 2001
Government Spending
Defense Spending (1940-2003)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
1940 1944 1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000
As % of GDP
Government Spending
Defense Spending (1940-2003)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
1940 1944 1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000
Government Spending
Defense Spending (1965-2003)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
1965 1969 1973 1977 1981 1985 1989 1993 1997 2001
As % of GDP
Government Spending
State and Local Consumption, 1960-2002
0
0.02
0.04
0.06
0.08
0.1
0.12
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
As % of GDP
Government Spending
State and Local Consumption, 1960-2002
0
0.02
0.04
0.06
0.08
0.1
0.12
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
Government Spending
State and Local Transfer Payments, 1960-2002
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
As % of GDP
Government Spending
State and Local Transfer Payments, 1960-2002
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
Government Spending
How the States Spend
0
0.2
0.4
0.6
0.8
1
1.2
1932
1938
1944
1950
1954
1957
1960
1963
1964
-65
1967
-68
1970
-71
1973
-74
1976
-77
1979
-80
1982
-83
1985
-86
1988
-89
1991
-92
1994
-95
1997
-98
2000
-01
Education
Other
WelfareRoads
% of State Spending for
different purposes
Government Spending
State Spending on Education, 1953-2001
0
0.01
0.02
0.03
0.04
0.05
0.06
1952 1956 1960 1963-64
1967-68
1971-72
1975-76
1979-80
1983-84
1987-88
1991-92
1995-96
1999-2000
As % of GDP
Government Spending
State Spending on Roads, 1953-2001
0
0.005
0.01
0.015
0.02
0.025
1952 1956 1960 1963-64
1967-68
1971-72
1975-76
1979-80
1983-84
1987-88
1991-92
1995-96
1999-2000
As % of GDP
Government Spending
State Spending on Welfare, 1953-2001
0
0.005
0.01
0.015
0.02
0.025
0.03
1952 1956 1960 1963-64
1967-68
1971-72
1975-76
1979-80
1983-84
1987-88
1991-92
1995-96
1999-2000
As % of GDP
Government Spending
State Spending on Other, 1953-2001
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
1952 1956 1960 1963-64
1967-68
1971-72
1975-76
1979-80
1983-84
1987-88
1991-92
1995-96
1999-2000
As % of GDP
Government Spending
State Spending on Other, 1953-2001
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
1952 1956 1960 1963-64
1967-68
1971-72
1975-76
1979-80
1983-84
1987-88
1991-92
1995-96
1999-2000
As % of GDP
Libraries, Hospitals, Health, Employment Security Administration, Veteran's Services, Air Transport, Water Transport and Terminals, Parking Facilities,
Transit Subsidies, Police Protection, Fire Protection, Correction, Protective Inspection and Regulation,
Sewerage, Natural Resources, Parks and Recreation, Housing and Community Development, Solid Waste Management, Financial Administration, Judicial and Legal, General Public Buildings, Other Government
Administration, Interest on General Debt and General Expenditures
Government Spending
State vs. Federal, 1959-2002
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
Federal
State
This graph shows federally-funded
state spending as both federal & state spending
Government Spending
State vs. Federal, 1959-2002
0%
20%
40%
60%
80%
100%
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
Federal
State
This graph shows federally-funded
state spending as federal spending
Government Spending
% of State Spending Federally Financed
0%
20%
40%
60%
80%
100%
1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999
Government Spending
End
©2004 Charles W. Upton. All rights reserved
Data are from Statistical Appendix of
Economic Report of the President