Government employs the largest number of people in

• Government employs the largest number of people in the United States (federal, state, and local governments together)

• Four key factors for growth of government 1. Population growth 2. Changing public attitudes 3. Rising standard of living 4. National emergencies

1. POPULATION GROWTH – If population grows you need more government employees because we need … • More schools • More police • Larger defense (military) • Better roads

2. CHANGING PUBLIC ATTITUDES • Because of Great Depression people rejected laissez-faire economic policy (no government interference) and wanted more government intervention • Franklin D. Roosevelt’s “New Deal” programs designed to ease the hardships of the Great Depression

3. Rising Standard of Living • as people earn and spend more and improve their standard of living, they expect goods and services to improve • US Government has grown in areas such as health care, education, and consumer protection

4. National Emergencies • A war can increase the government in size – Example: World War II Congress passed the GI Bill of Rights: provided funds for veterans to return to college – this program continued after the war ended

• New government programs leads to increased government spending • Federal Government mostly spends on insurance benefits & interest on debts • State & Local Governments mostly spend of education, public welfare, and road construction and maintenance