Prior to World War I, aggregate local government expenditures were larger than federal government expenditures.

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Prior to World War I, local governments were responsible for providing and funding most public services, such as education, police and fire protection, and infrastructure. As a result, their aggregate expenditures were larger than the federal government's. It wasn't until the 1930s and the New Deal policies that the federal government's role in providing social and economic services expanded significantly.

Prior to World War I, Aggregate Local Government Expenditures Were