what does the us government spend the most money on
United States federal budget During FY2016, the federal government spent $3.85 trillion on a budget or cash basis, up $164 billion or 4% vs. FY2015 spending of $3.69 trillion. Major categories of FY 2016 spending included: Healthcare such as Medicare and Medicaid ($1,060B or 28% of spending), Social Security ($910B or 24%), non-defense discretionary spending used to run federal Departments and Agencies ($600B or 16%), Defense Department ($585B or 15%), and interest ($240B or 6%).[1]
Economy of the United States The United States has been the world's largest national economy in terms of GDP since at least the 1920s.[43] For many years following the Great Depression of the 1930s, when danger of recession appeared most serious, the government strengthened the economy by spending heavily itself or cutting taxes so that consumers would spend more, and by fostering rapid growth in the money supply, which also encouraged more spending. Ideas about the best tools for stabilizing the economy changed substantially between the 1930s and the 1980s. From the New Deal era that began in 1933, to the Great Society initiatives of the 1960s, national policy makers relied principally on fiscal policy to influence the economy.[citation needed]