Despite the large federal deficits during the last few decades, public capital in the United States declined because _____
A) a growing share of the federal budget goes toward income redistribution, especially for the elderly.
B) of less labor productivity.
C) of increasing farm subsidies.
D) of the growing portion of the national debt owed to foreigners.
E) a growing share of the federal budget goes toward income redistribution, especially for national defense.

Question

Quizplus · Accepted Answer

The statement mentions that a growing share of the federal budget goes toward income redistribution, especially for the elderly. This suggests that there has been a shift in government spending away from public capital investment towards income redistribution programs, leading to a decline in public capital.

Despite the Large Federal Deficits During the Last Few Decades