Government Growth

• Beginning had no revenue and no spending
• Last year, Govt. spending was about 40%
• Military
• Social Welfare
• Infrastructure

Theories of Govt Growth

• Demand
• Supply
• "Ratchet"
• Public Interest
• Public Choice

Demand

• People demand public goods
• Parks
• Roads
• Schools
• Military
• Encouraging Competition
• Externalities
  • Positive
  • Negative

Redistribution of Wealth and Income

• "Spread the Wealth"
• New Deal
  • Social Security Act
• Great Society
• "War on Poverty"
• Stabalization
  • FED
  • Employment Act

Supply

• Voting
• Lobbying
• Bureaucracy
• Regulatory Capture