Cost of Government Estimated at 50 percent of GNP.

• Position: Brief Article - Statistical Data Included

Between 1900 and 2000, the cost of federal, state, and local government increased from 11 percent of Gross National Product (GNP) to 50 percent. During the 1930s, spending by governments grew from 13 percent to 20 percent of GNP while the federal government embarked on Depression-era New Deal spending programs. As the nation boosted spending to fight World War II, spending jumped to 47 percent of GNP in the 1940s before dropping to 28 percent following the war. In addition to wars and large spending programs, federal regulation and mandates also have generated a significant cost. According to...