William_T._Bianco,_David_T._Canon]_American_Polit

WHAT DO

THE FACTS

S AY?

• How much is the federal government helping the states in terms of grants?
  Has this greatly increased? What does this say about the debates between
  nation-centered and state-centered federalism?


• Should the national government provide more grants to state and local gov-
  ernments to help even out inequalities and address national problems, or leave
  decisions about funding up to the states?


• What determines whether the local, state, or federal government should be
  responsible for spending on a given policy?

Think about it

Source: St. Louis Federal Reserve Bank, fred.stlouisfed.org (accessed 9/30/18).

5

0

10

15

20

25

30%

Percentage

of GDP

1947 1957 1967 1977 1987 1997 2007 2017

Federal

State/Local

Grants

87

Is Federal Spending Out of Control?

Advocates for smaller government often make the argument that spending in

Washington is out of control and that state and local governments should have more

power. What do the numbers say? What are the trends in state and local spending as a

share of the total economy compared to federal spending?

Federalism today

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