Federal government spending

Federal government spending is a complex issue discussed by various experts in the following podcast clips:

1. Education Spending - Eric Hanushek speaks on the EconTalk about the federal government's role in education funding. Over the past decade, federal contributions rose from 6-7% to about 9% of total educational spending. Despite individual states spending more on education, federal funds remain crucial, with states reluctant to forego federal support despite legal options to do so 1.

2. General Spending - David Friedberg and David Sacks on the All-In Podcast discuss how federal spending surged to 25-30% of GDP during COVID, significantly higher than the historic average of 18-20%. This created a deep economic dependency, with around 120 million Americans directly benefiting from federal spending. They emphasize the need to control and rationalize spending to avoid exacerbating economic issues 2.

3. Spending Trends - George Hahn on the The Prof G Pod with Scott Galloway describes how U.S. government spending has modestly grown from 17% to just over 20% of GDP since the 1960s, excluding major crises. The issue isn't the spending itself but the reliance on debt, as the government now owes what the economy produces in a year, with projections indicating the debt could reach 118% of GDP by 2033 3.

   
   1
   Federal Government's Education Spending
   00:11:25
   
   2
   Federal Spending Insights
   00:52:55
   
   3
   Government Spending Insights
   00:02:56
   
   4
   Federal Spending Crisis
   00:09:21
   
   5
   Defense Spending Breakdown
   02:58:24

4. Pandemic Spending - Ted Cruz discusses on the Verdict with Ted Cruz4.

5. Defense Spending - The Acquired podcast provides a detailed breakdown of the U.S. defense budget, which stands at $800 billion, representing about 3-4% of GDP and 12-20% of the federal budget. A significant portion of this budget, around $50 billion, goes to Lockheed Martin, highlighting the close relationship between private contractors and the government 5.

These discussions indicate a significant increase in federal spending across various sectors, and the ongoing challenges in funding and managing the national budget.