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How Much Money Should the Government Spend?


Published February 9, 2023

In 2021, government expenditures in the United States totaled 44% of GDP. The state finances this expenditure through taxes, fees, printing money, and borrowing. Hoover senior fellow Joshua Rauh details the government’s use of these funds.

Discussion Questions:

  1. How big should the government be?
  2. When is the role of the government justified versus not justified?

Additional Resources:

  • Read “How Much Do Public Employees Value Defined Benefit Versus Defined Contribution Retirement Benefits?” by Joshua Rauh. Available here.
  • Watch “Tax Flight: Behavioral Responses to State Income Taxation,” with Joshua Rauh on PolicyEd. Available here.
  • Watch “Setting the Record Straight on Wealth Inequality,” with Tyler Goodspeed on PolicyEd. Available here.