Government in the Economy
The major components of spending in the U.S. are consumption, investment, and government spending on goods and services; net exports are fairly small by comparison. It may surprise some to know that government’s share of spending has remained fairly constant over the period 1929–98. (Reliable data prior to 1929 are not available.) With the notable exception of World War II, government’s share of spending has been approximately 20% of the total.
Suggested citation: "Government in the Economy," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-08, pp. 04, 08.01.1999.