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10 April, 09:03

What is true regarding government expenditures in the united states?

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  1. 10 April, 09:35
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    Government expenditures as a share of GDP grew rapidly between 1930 and 1980.

    Explanation:

    The reason is that when the economy is growing with higher growth rates then the earnings of the companies grow subtantially and this increases in the tax collections and foriegn reserves. An equal share of income to government comes from the employees who pay income taxes. This means their is a lot to spend on infrastructure and other things. So the government starts creating opportunities which is its investments in creating business opportunities and offering increased values in services to its people. This was the case between 1930 and 1980. This gave America a very favorable chance to capture investors to invest in America and increased the employability of its workforce.
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