July, 2010

Government Spending 101

Summary

How much do you actually know about government spending? Government Spending 101 is here to help you learn how it works and what effects it has on your life.

Government spending. You hear a lot about it these days.  The news is filled with stories about stimulus bills, pork projects, government deficits, and funding fights.

But how much do you actually know about government spending? Do you know why the government spends money? How the budget appropriations process works? Where does all that money come from anyway?  And what exactly is a deficit and how will it affect you?

You have questions. We have answers and the research that backs them up. Welcome to Government Spending 101.

  • You earn the money the government spends. The only way the government can obtain money is through taxation, and regardless of whom the government claims it is taxing, ultimately, the people pay all

    Antony Davies
    July 31, 2010
  • There are two types of government expenditure: transfers and purchases of goods and services. Transfers, the product of complex political and social negotiations, are promulgated and defended on the

    July 31, 2010
  • While the federal government has been raising and spending money since the birth of the Republic, for most of those years spending took place in a piecemeal, ad hoc fashion. This worked reasonably

    James C. Musser
    July 31, 2010
  • Governments make direct purchase of goods and services. The federal government, for example, buys guns, bullets, tanks, and uniforms, etc. and pays soldiers to supply the national defense.

    July 31, 2010
  • The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises . . . To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures . . . .

    —The Constitution of the United States, Article I, Section 8

    Antony Davies
    July 31, 2010