Editing Economy of the United States (section)

===Expenditure===
{{Main|United States federal budget|Government spending in the United States|National debt of the United States}}
{{See also|Social programs in the United States|Social Security (United States)}}
[[File:2023 US Federal Budget Infographic.png|thumb|400px|right|CBO: U.S. Federal spending and revenue components for fiscal year 2023. Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources.]]
[[File:CBO Deficit - Baseline Comparison - April 2018.png|thumb|right|350px|Congressional Budget Office (CBO) baseline scenario comparisons: June 2017 (essentially the deficit trajectory that President Trump inherited from President Obama), April 2018 (which reflects Trump's tax cuts and spending bills), and April 2018 alternate scenario (which assumes extension of the Trump tax cuts, among other current policy extensions).<ref name="CBO_BOE2018">{{cite web| url = https://www.cbo.gov/publication/53651| title = CBO Budget and Economic Outlook 2018–2028| date = April 9, 2018}}</ref>]]

The United States public-sector spending amounts to about 38% of GDP (federal is around 21%, state and local the remainder).<ref>{{Cite web|url=https://www.oecd.org/en/data/indicators/general-government-spending.html|title=General government spending|website=OECD}}</ref> Each level of government provides many direct services. The federal government, for example, is responsible for national defense, research that often leads to the development of new products, conducts space exploration, and runs numerous programs designed to help workers develop workplace skills and find jobs (including higher education). Government spending has a significant effect on local and regional economies, and on the overall pace of economic activity.

[[Politics of the United States|State governments]], meanwhile, are responsible for the construction and maintenance of most highways. State, county, or city governments play the leading role in financing and operating public schools. Local governments are primarily responsible for police and fire protection. In 2016, U.S. state and local governments owed $3{{spaces}}trillion and have another $5{{spaces}}trillion in unfunded liabilities.<ref>{{cite news |title=Debt Myths, Debunked |url=https://www.usnews.com/opinion/economic-intelligence/articles/2016-12-01/myths-and-facts-about-the-us-federal-debt |work=U.S. News |date=December 1, 2016}}</ref>

The [[United States welfare state|welfare system in the United States]] began in the 1930s, during the Great Depression, with the passage of the [[New Deal]]. The welfare system was later expanded in the 1960s through [[Great Society]] legislation, which included [[Medicare (United States)|Medicare]], [[Medicaid]], the [[Older Americans Act]] and federal education funding.

Overall, federal, state, and local spending accounted for almost 28% of gross domestic product in 1998.<ref>{{cite web |url=http://www.gpoaccess.gov/usbudget/fy01/guide01.html|title=U.S. Budget 2001|archive-url=https://web.archive.org/web/20120112170429/http://www.gpoaccess.gov/usbudget/fy01/guide01.html|archive-date=January 12, 2012}}</ref>