GROWTH OF GOVERNMENT EXPENDITURES - THE CASE OF USA

This article examines empirically the secular growth of the government sector in the United States since World War II. Like a similar study of Canadian federal government expenditures, this article also conside rs both the economic and political dimensions of the issue, but it inc orporates additional factors peculiar to the United States, such as mi litary spending and the Reagan era. The study finds that: (1) Military spending and real income growth are the primary determinants of the g rowth of government expenditures' share of GNP; (2) To a lesser extent , perceived economic problems, government employment, the proportion o f the elderly population, and elite preferences also play some part in explaining governmental growth in the United States; and (3) While th e Reagan presidency had some impact on the purchases of government goo ds and services, it had little effect in restraining overall governmen t expansion.