From 1960 to 2015, government purchases in the United States have shrunk as a percentage of GDP, but transfer payments have expanded greatly.

Question

Quizplus · Accepted Answer

This statement is true. Over the years, government purchases (such as spending on infrastructure, defense, and education) have decreased as a percentage of GDP, while transfer payments (such as Social Security, Medicare, and welfare programs) have increased. This shift reflects a greater emphasis on social welfare programs and a smaller role for government in directly providing goods and services.

From 1960 to 2015, Government Purchases in the United States