(See related pages)
After reading this chapter you should be able to
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Understand the process that goes into creating the federal budget of the United States. |
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Recognize that mandatory spending—the portion of the budget that is devoted to spending on items for which no annual vote is taken—has steadily increased because of various entitlement programs and interest on the national debt. |
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See how 30 percent of the federal budget is allocated almost equally to domestic spending and defense, with a relatively small amount going for foreign aid and for dues to international organizations such as the United Nations. |
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Understand how to use marginal analysis when looking at federal spending. |
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Distinguish between current-services and baseline budgeting. |
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See that the idea of opportunity cost is at the heart of federal spending. |