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Summary and analysis
The united states government expenditure has been increasing rapidly since the mid-2000s. The local government, federal, and state expenditures have increased from 4.4 trillion to 6 trillion from 2005, with California having total spending of $333.8 billion in 2015. However, the spending continued to grow after the recession due to several factors, including the covid 19 pandemic. Federal spending increased drastically to $700 during the great recession due to the need to bail out banks and provide a “stimulus.” Since the recession period, the federal government expenditure was held steady at $3.6 trillion, but it increased to 6.55 trillion due to the covid 19 pandemic.
According to the 2019 census bureau, the total state government expenditure was $1.92. However, in 2020 the spending increased significantly due to the covid 19 pandemic and was estimated to be about $1.97 trillion. Before the beginning of the 20th century, State government expenditure was the smallest component of government spending since it spent less than 1% of GDP each year. However, it increased steadily 3% in the 1930s and over 8% in 2000. The 2008 recession led to a drastic increase to around 9.8%. The chart above indicates that the federal government spends more than the local government on public welfare and education. Both the state and the local expenditure increased over a while from 1 trillion in 1997 to over 3 trillion in 2017. General spending on significant categories such as a pension, education, defense, welfare, and healthcare has increased over a period of time.
How 5 Indicators Relate to The Growing Centralization of the Federal Government
The five indicators, i.e., education, pension, defense, healthcare, and welfare, indicate a growing centralization of the local government. For instance, the federal government is in charge of defense spending in the regional states, reducing general expenditure on defense. The state also spends a comparatively higher amount of money on higher education and healthcare than the local government, indicating a growing centralization of the local government.