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Government Spending
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What is Government Spending?

Government spending refers to the funds a government allocates toward public services, infrastructure, social programs, defense, and debt obligations. It is a central subject in economics, public policy, and political science courses because it sits at the intersection of fiscal policy, democratic accountability, and macroeconomic performance. Students encounter this topic in introductory economics classes as well as upper-level courses in public economics and corporate finance, where understanding how government expenditure shapes aggregate demand, inflation, and national debt is considered foundational knowledge.

The papers archived on this topic reflect a wide range of analytical approaches. Some take a comparative lens, contrasting Keynesian and classical economic schools of thought on whether government spending stimulates or distorts economic activity. Others adopt a policy-analysis framework, examining how deficit spending affects taxpayers, future social programs, and national debt levels. Historical treatments trace the economic history of the United States to show how spending priorities have shifted over time, while internationally focused work looks at phenomena such as EU enlargement and economic growth in new member states. Exchange rate systems — both fixed and floating — also appear as connected frameworks for evaluating spending policy in open economies.

A strong essay on government spending begins with a clearly bounded thesis: arguing a specific effect of spending on aggregate demand, inflation, or income distribution is more manageable than covering all fiscal policy at once. Evidence drawn from macroeconomic data, historical budget records, and recognized economic frameworks carries the most weight. The most common pitfall is conflating government spending with government debt — these are related but distinct concepts, and blurring them undermines analytical precision.

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Paper Undergraduate
Ben Bernanke's Monetary Policy and the 2008 Credit Crisis
¶ … Ben 'do the right thing?' Why Fed Chairman Ben Bernanke's monetary policy was correct in the wake of the credit crisis -- but he should not have been chosen Time Magazine's person of the year
Paper Undergraduate
U.S. Macroeconomic Analysis: GDP, Inflation, and Unemployment
The state of the United States economy is slowly improving. Over the past eighteen months, key indicators have been at levels that would be considered poor historically, but there have been signs of improvement of late.
Essay Doctorate
Monetary Policy, Exchange Rates, and Economic Stabilization
A meeting between heads of state: President Obama of the United States and Naoto Kan of Japan has just concluded. The focus of the discussion was the exchange rate between the U.S. dollar and the Japanese yen.
Essay Doctorate
GDP, Fiscal Policy, and the Business Cycle Explained
This paper is a memo addressing three economic issues. First, it discusses thegross domestic product and how it can be used to measure the business cycle. Next, it describes the roles that the government bodies, Congress, the Executive Branch, and the Fed, play in determining national fiscal policies. Finally, it describes how national fiscal policies impact the economy's production and employment.
Research Paper Undergraduate
Social Movements and Rhetorical Change in Public Policy
Charles Tilly defines social movements as a series of contentious performances, displays and campaigns by which ordinary people made collective claims on others [Tilly, 2004]. For Tilly, social movements are a major…
Paper High School
Should the Bush Tax Cuts Be Extended? A Policy Analysis
We should let the Bush tax cuts expire for the top income earners, but retain the remainder of the Bush tax cuts. There are two distinct economic factors that must be considered in this argument -- economic growth and…
Paper Undergraduate
Keynes's Liquidity Trap, Japan, and the Great Depression
In his 1935 New Year's Day letter to George Bernard Shaw Keynes indicated that he was writing a book that would revolutionize economic theory. Keynes's theory would describe a real world economy where liquidity and…
Paper Doctorate
Abu Dhabi Stock Market: Efficiency and Transmission Mechanisms
Like many of its neighboring countries, the United Arab Emirates has made enormous efforts in recent years in an attempt to reduce dependence on the dominant public sector and to provide private investors a bigger role…
Essay Doctorate
Measuring U.S. Economic Health: GDP, Unemployment & Inflation
There are a number of different metrics that can help to measure the health of an economy. The GDP is one of those numbers, and can be obtained from the Bureau of Economic Analysis.
Paper Doctorate
Federal Arts Funding: Market Forces vs. Public Support
Recommendations on a Proposal to Defund the Arts