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Federal Government Growth: During and After World War II.

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Federal Government Growth: During and After World War II It is frequently claimed that World War II contributed to the growth of the big government in the United States. Why does government grow? It is believed that the growth was due to the rising affluences, the pressure of interest groups, the empire-building of bureaucrats, and the extension of the vote to previously disenfranchised classes. The war affected the growth of the federal government in three different major areas: public finance, military spending, and social welfare programs. Until World War II the individual income tax was a minor part of the federal government receipts (affecting no more than 3 percent of the population). However with the introduction of the employee withholding tax in 1943, for the first time a large percentage of the population was subject to the income tax. The unprecedented amount of money being raised and spent for World War II suddenly touched the consciousness of many pacifists, who up until the war were not required to pay taxes. ...read more.


Excise taxes were raised, and special taxes that continued to be collected for decades were taxed on luxury goods, which made income tax more progressive. While taxes had covered 33 percent of World War I government spending, in World War II they covered 46 percent. The war also provided immediate benefits to the U.S. economy because it led to a substantial increase in exports and in the federal government itself. The issue of defense of the country should be priority for every government. It is very good that American government created such strong army with the most modern machines and system of defense. The US is currently spen ding close to $300 billion a year on military spending. In the Past-Cold war p eriod; this represents a vast waste of public capital. U.S. spending on its mi litary rose from $6 million in 1940 to almost $17 billion by 1941. ...read more.


The government program today provides money, medical care, food, housing, and other things that people need in order to survive. There are fou r major programs that contribute to the welfare system. These programs are Me dicaid, Aid to families with dependant Children, Social Security, or Supplement al Security, or the food stamps program. This system determined the income lev el for every household and how many individuals lived there. If the level of i ncome was below what was the determined necessary income level, the welfare sys tem provided benefits for that household. For instance, a household that has f our people living there, and they required $900.00 to live every month, and the family could only earn up to $500.00 a month, welfare would give the family th e $400.00 benefit. If the family had no income, welfare gave the full $900.00 a month to that family. In conclusion, the Federal Government grew tremendously basicall y after 1954. There were years that were affected, but the outcome became grea tly appreciated through out history. ...read more.

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