The U. S. federal government is spending significantly more per person now than it was in 1916. This increase in spending has led to a perception of an affordability crisis among Americans, despite the higher expenditure on citizens.
1. Current Spending Statistics: In fiscal year 2025, the federal government spent approximately $7.035 trillion, equating to $20,474 per person. This marks a dramatic increase from $208.36 per person in 1916, highlighting a growth of 98 times over the past century.
2. Household Income Comparison: In contrast to federal spending, the median household income for 2024 is projected at $83,730. This suggests that for a typical family of four, federal spending nearly matches their pre-tax income. Basic living costs, such as mortgage payments and groceries, are now overshadowed by government expenditures.
3. Historical Context: Government spending has steadily increased since World War I, with notable exceptions during major crises such as World War II and the 2008 mortgage crisis. After spikes in spending due to these crises, per capita spending resumed its upward trend.
4. Recent Spending Trends:
• During the COVID-19 pandemic, federal spending reached unprecedented levels, rising from $17,207.20 per person in 2019 to $24,808.23 in 2020.
• Post-pandemic spending has stabilized at over $20,000 per person, a new standard for federal expenditures.
5. Major Contributors to Spending Increases: A significant portion of increased spending is attributed to programs like Social Security, which sees more beneficiaries and increased cost-of-living adjustments. Both Medicare and Medicaid are also factors in rising expenditures, compounded by escalating healthcare costs.
6. National Debt Concerns: With a federal deficit projected at $1.8 trillion for fiscal year 2025, government borrowing has surged. In July 2025 alone, the federal government borrowed $572.8 billion, the highest for any single month outside the pandemic.
7. Calls for Accountability: The increase in federal spending raises questions about whether improvements in quality of life, innovation, and affordability have kept pace with spending. There is a push for increased transparency and scrutiny of government expenditures, highlighted by advocacy groups like Open the Books, which aim to identify and expose waste and promote accountability.
Federal spending has dramatically increased over the last century, raising concerns about its impact on affordability and quality of life for Americans. Despite the substantial investments made by the government, questions arise regarding the effectiveness and transparency of these expenditures. As the national debt continues to grow, stakeholders are encouraged to scrutinize government spending practices to ensure taxpayers receive adequate value for their money.
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