We noted that government purchases dont include all government spending. A big part of what the U.S.

We noted that €œgovernment purchases€ don€™t include all government spending. A big part of what the U.S. government does is transfer money from one person to another. Social security (payments to retirees), and Medicare and Medicaid (paying for medical care for the elderly and the poor) make up most of these €œgovernment transfers.€ We€™ll look into this in more detail in Chapter 36, but right now, let€™s see how big €œgovernment transfers€ are and how fast they€™ve grown in the federal government€™s budget. The figures in this table are all in non-inflation-adjusted dollars. Complete the table.

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Total Total Transfers as Percent of Spending Year 1950 2000 Growth Rate in %: Federal Transfers $13.6 Billion $1,057 Billon Federal Spending $42.5 Billion $1,788 Billion