Governement Spending

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Everyone has their own opinion about government spending.

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Government spending reduces labor force which is created for people to work. Government creates uncertainty that reduces the return of long-term investments. Government spending reduces productivity growth rates. Government spending makes the labor markets more rigid. Americans are blaming wasteful government spending for the deficit. Wasteful spending consists, of programs that should be devolved to state and local governments.Income Security has gone up to 15.2% in the last two years. The social security rate has gone up in the last three years to 19.4%. Discretionary spending was 38% of fiscal in 2008. Mandatory spending was 54% of fiscal in 2008. In 2009, the unemployment rate in the US rose 9%, it was the highest level in 26 years.