Waste in Government Expenditures

They do serve to permission the fiscally unsophisticated to tuttut, and they do permit the morally clean-handed to display their superiority over the rest of us. If all such(prenominal) governance purchases were eliminated, however, within the context of a federal budget where dollar amounts are rounded off to the nearest wholenesstenth of a one million million, their absence would non even be noticed.

Peter Grace, in his report on government yen which was both commissioned and trendd by the Reagan political science, as fountainhead as being ignored by the Congress, correctly determine the type of government waste which is providing material assistance in maintaining the federal budget deficit ("What Ever Happened to the Grace delineate?," 1989). One of the culprits he identified was excessive defense expenditures. It is hardly move that the militaryoriented Reagan Administration chose to ignore that finding. A wink major culprit was entitlement programs. It is also hardly surprising that the government services to the publicoriented Congressional majority chose to ignore that finding. The Grace report also noted that a reverse on the part of the federal government to provide measure 3 receiptss sufficient to cover its spending programs was a major culprit in the federal budget deficit problem. Both the Administration (Reagan, and afterwards Bush) and the Congress besidesk this bit in their collective teeth; the Administration to blame the Congre

Morris, C. R. "Deficit computation: Doesn't Add Up." The New York Times, Section 6, 12 February 1989, 36, 3840.

ss for too much spending (ignoring the fact that the Reagan Administration never submitted a budget in which proposed spending was bring d declare in absolute terms); the Congress to blame the Administration for not supporting revenue increases (ignoring the fact that Congress over the old eight years has not passed a major revenue increase to send to the President). As a consequence, of course, nothing happened, and that is apt(predicate) what the Administration wanted; that is, in lieu of getting their own way entirely.

As a proportionality of gross subject area product (GNP), gross federal debt increase from 33.

6 part at the blotto of fiscal year 1981 to 53.4 share at the close of fiscal year 1987. During the same time period, the publicly held proportion of the federal debt increased from 26.6 percent of GNP in 1981, to 43.0 percent of GNP in 1987.

3Calculated from entropy obtained from: Council of Economic Advisers, Economic Indicators, July 1988), p. 32.

2Calculated from data obtained from: Council of Economic Advisers, Economic Indicators (Washington: U. S. Government Printing Office, February 1984), p. 32.

A pass on distortion in American income distribution from 1981 to 1987 did accompany increased interest payments on publicly held debt. The maximum shift with interest payments was $28.4 billion. Personal income, in nominal terms, increased $1,224.9 billion between 1981 and 1987. Had income distribution remained unchanged between 1981 and 1987, the highest 20 percent of the population would have received personal income of $1,603.2 billion in 1987. Because income distribution did change, however, this group received personal income of $1,857.9 billion in 1987up $254.7 billion. 10

Once again, however, federal budget deficits soared, when the Viet Nam War was financed in the 1960s and 1970s. The Kennedy and
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