Economics Paper on U.S.A Government Spending In Fiscal Year 2016

The primary sources of revenue for the federal government include individual income taxes, corporate taxes, and excise taxes. However, before the World War II, the key source of revenues for federal was excise taxes or taxes on consumer goods. Subsequently, since World War II, the key sources of revenue include personal income taxes and corporate taxes, with personal taxes being the key source since the 1940’s. (United States, Office of Management Budget, 37)

Government spending on National Defense, Health, Income Security and Social Security have significantly increased yearly (United States, Office of Management Budget, 38). In 1940s, approximately one million was spent on National Defense, and it’s estimated that around six-hundred million will be spent in advancing years. (United States, Office of Management Budget, 40). Similar trends are exhibited by Health sector, Income Security and Social Security. Consequently, the spending in such areas have gradually increased, perhaps, due to a number of reasons. Health, Social Security, and Income Security are intimately related, and with an influx of people over 65 percent receiving aid, the spending must increase accordingly to cater for the increasing population. Also, the requirements for healthcare have changed, allowing more people to receive healthcare. Since World War II, spending on National Defense has also increased, perhaps, due to rising tensions amidst the Cold War and Vietnam War. Investments went into nuclear weapons, since the country presumably endeavor to stay ablest of defense in case of threats.

The budget spent on Natural Resources and Energy has mostly increased, with a few years showing a decline in expenditure. Arguably, the increase is due to environment and natural resources crisis experienced in the contemporary world, with human increasing population seeking for more land to settle in. As oil reservoirs and key natural resources decrease, the country must consider alternatives and establish methods to conserve the limited resources available.

Works cited

United States, Office of Management Budget. Historical Tables, Budget of the United States Government: Fiscal Year 2016. Place of publication not identified: Claitors Publishing, 2015. Print. Accessed 29th March 2018