Real-World
Economics

 

George H. Blackford, Ph.D.

 Economist at Large

 Email: george(at)rwEconomics.com

 

It ain't what you don't know that gets you into trouble.

It’s what you know for sure that just ain't so.
Attributed to Mark Twain (among others)

    

 

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Graphs from
Understanding the Federal Budget

Amazon.com

 

 

 

 

Source: Office of Management and Budget (1.1 10.1), Bureau of Economic Analysis. (1.1.5)

 

Source: Office of Management and Budget. (2.3 10.1)

 

Source: Office of Management and Budget. (2.5 10.1)

 

Table 2.1: Breakdown of Federal Budget by Function and Subfunction, 2013.

Function and Subfunction, 2013

Billions of
Dollars

Percent of
GDP

Percent of
Budget

050 National Defense:

$633.4

3.81%

18.33%

051 Department of Defense-Military:

$607.8

3.66%

17.59%

Military Personnel

$150.8

0.91%

4.37%

Operation and Maintenance

$259.7

1.56%

7.52%

Procurement

$114.9

0.69%

3.33%

Research, Development, Test, and Evaluation

$66.9

0.40%

1.94%

Military Construction

$12.3

0.07%

0.36%

Family Housing

$1.8

0.01%

0.05%

Other

$1.4

0.01%

0.04%

053 Atomic energy defense activities

$17.6

0.11%

0.51%

054 Defense-related activities:

$8.0

0.05%

0.23%

150 International Affairs:

$46.4

0.28%

1.34%

151 International development and humanitarian assistance

$22.8

0.14%

0.66%

152 International security assistance

$9.9

0.06%

0.29%

153 Conduct of foreign affairs

$13.0

0.08%

0.38%

154 Foreign information and exchange activities

$1.5

0.01%

0.04%

155 International financial programs

-$0.8

-0.01%

-0.02%

250 General Science, Space, and Technology:

$28.9

0.17%

0.84%

251 General science and basic research

$12.5

0.08%

0.36%

252 Space flight, research, and supporting activities

$16.4

0.10%

0.48%

270 Energy:

$11.0

0.00%

0.00%

271 Energy supply

$9.0

0.05%

0.26%

272 Energy conservation

$1.2

0.01%

0.04%

274 Emergency energy preparedness

$0.2

0.00%

0.01%

276 Energy information, policy, and regulation

$0.5

0.00%

0.02%

300 Natural Resources and Environment:

$38.1

0.23%

1.10%

301 Water resources

$7.7

0.05%

0.22%

302 Conservation and land management

$10.7

0.06%

0.31%

303 Recreational resources

$3.5

0.02%

0.10%

304 Pollution control and abatement

$9.6

0.06%

0.28%

306 Other natural resources

$6.6

0.04%

0.19%

350 Agriculture:

$29.5

0.18%

0.85%

351 Farm income stabilization

$25.0

0.15%

0.73%

352 Agricultural research and services

$4.4

0.03%

0.13%

370 Commerce and Housing Credit:

-$83.2

-0.50%

-2.41%

371 Mortgage credit

-$87.9

-0.53%

-2.54%

372 Postal service

-$1.8

-0.01%

-0.05%

373 Deposit insurance

$4.3

0.03%

0.12%

376 Other advancement of commerce

$2.2

0.01%

0.06%

400 Transportation:

$91.7

0.55%

2.65%

401 Ground transportation

$60.0

0.36%

1.74%

402 Air transportation

$21.5

0.13%

0.62%

403 Water transportation

$9.8

0.06%

0.28%

407 Other transportation

$0.4

0.00%

0.01%

450 Community and Regional Development:

$32.3

0.19%

0.94%

451 Community development

$7.8

0.05%

0.23%

452 Area and regional development

$1.5

0.01%

0.04%

453 Disaster relief and insurance

$23.0

0.14%

0.67%

500 Education, Training, Employment, and Social Services:

$72.8

0.44%

2.11%

501 Elementary, secondary, and vocational education

$42.4

0.26%

1.23%

502 Higher education

-$0.5

0.00%

-0.02%

503 Research and general education aids

$3.7

0.02%

0.11%

504 Training and employment

$7.3

0.04%

0.21%

505 Other labor services

$1.9

0.01%

0.05%

506 Social services

$18.1

0.11%

0.52%

550 Health:

$358.3

2.16%

10.37%

551 Health care services

$321.8

1.94%

9.32%

552 Health research and training

$32.9

0.20%

0.95%

554 Consumer and occupational health and safety

$3.6

0.02%

0.10%

570 Medicare:

$497.8

3.00%

14.41%

600 Income Security:

$536.5

3.23%

15.53%

601 General retirement and disability insurance (excluding social security)

$7.0

0.04%

0.20%

602 Federal employee retirement and disability

$131.7

0.79%

3.81%

603 Unemployment compensation

$70.7

0.43%

2.05%

604 Housing assistance

$46.7

0.28%

1.35%

605 Food and nutrition assistance

$109.7

0.66%

3.18%

609 Other income security

$170.7

1.03%

4.94%

650 Social Security:

$813.6

4.90%

23.55%

700 Veterans Benefits and Services:

$138.9

0.84%

4.02%

701 Income security for veterans

$65.9

0.40%

1.91%

702 Veterans education, training, and rehabilitation

$12.9

0.08%

0.37%

703 Hospital and medical care for veterans

$52.5

0.32%

1.52%

704 Veterans housing

$1.3

0.01%

0.04%

705 Other veterans benefits and services

$6.3

0.04%

0.18%

750 Administration of Justice:

$52.6

0.32%

1.52%

751 Federal law enforcement activities

$27.3

0.16%

0.79%

752 Federal litigative and judicial activities

$14.6

0.09%

0.42%

753 Federal correctional activities

$6.9

0.04%

0.20%

754 Criminal justice assistance

$3.8

0.02%

0.11%

800 General Government:

$27.8

0.17%

0.80%

801 Legislative functions

$3.7

0.02%

0.11%

802 Executive direction and management

$0.5

0.00%

0.01%

803 Central fiscal operations

$12.1

0.07%

0.35%

805 Central personnel management

$0.4

0.00%

0.01%

806 General purpose fiscal assistance

$7.9

0.05%

0.23%

808 Other general government

$6.0

0.04%

0.17%

809 Deductions for offsetting receipts

-$2.7

-0.02%

-0.08%

900 Net Interest:

$220.9

1.33%

6.39%

950 Undistributed Offsetting Receipts:

-$92.8

-0.56%

-2.69%

Total outlays

$3,454.6

20.79%

100.00%

Source: Office of Management and Budget (3.2 10.1)

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Table 4.1: Federal Welfare Programs and Expenditures, 2013.

Program (2013)

Billions of
Dollars

Percent of
GDP

Percent of
Budget

Medical care:

$282.4

1.70%

8.17%

Children's health insurance

$9.5

0.06%

0.27%

Medicaid

$265.4

1.60%

7.68%

Indian health

$4.3

0.03%

0.12%

Substance abuse and mental health services

$3.2

0.02%

0.09%

Student assistance-Department of Education other

$44.9

0.27%

1.30%

Housing assistance

$39.3

0.24%

1.14%

Food and nutrition assistance:

$109.6

0.66%

3.17%

SNAP (formerly Food stamps) (including Puerto Rico)

$82.5

0.50%

2.39%

Child nutrition and special milk programs

$19.3

0.12%

0.56%

Supplemental feeding programs (WIC and CSFP)

$6.6

0.04%

0.19%

Commodity donations and other

$1.1

0.01%

0.03%

Public assistance and related programs:

$172.5

1.04%

4.99%

Supplemental security income

$50.3

0.30%

1.46%

Family support payments to States and TANF

$21.2

0.13%

0.61%

Low income home energy assistance

$3.5

0.02%

0.10%

Earned income tax credit

$57.5

0.35%

1.66%

Veterans non-service connected pensions

$5.0

0.03%

0.15%

Payments to States for daycare assistance,

$5.2

0.03%

0.15%

Payments to States—Foster Care/Adoption Assist

$6.8

0.04%

0.20%

Payment where child credit exceeds tax liability

$21.6

0.13%

0.63%

Refundable AMT credit

$0.2

0.00%

0.00%

Other public assistance

$1.2

0.01%

0.04%

Total Welfare Expenditures

$648.6

3.90%

18.78%

Source: Office of Management and Budget. (11.3 10.1)

 

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Source: Office of Management and Budget. (11.3 3.2 10.1)

 

Source: Census Bureau (151)

 

Source: Office of Management and Budget. (8.1 10.1 11.3)

 

Source: Office of Management and Budget. (8.1 11.3 10.1)

 

Source: Burman, Toder, and Geissler.

 

Source: *Congressional Budget Office, **Burman et al., ***Census Bureau.

 

Source: *Congressional Budget Office, **Burman et al., ***Census Bureau.

 

Source: *Congressional Budget Office, **Burman et al., ***Census Bureau.

 

Source: *Congressional Budget Office, **Burman et al., ***Census Bureau.

 

Source: *Congressional Budget Office, **Burman et al., ***Census Bureau.

 

Source: Office of Management and Budget. (3.1 10.1)

 

Source: Office of Management and Budget. (11.3 3.1 10.1)

 

Table 5.1: Expenditures Included in Retirement/Disability, 2013.

Program (2013)

Billions of
Dollars

Percent of
GDP

Percent of
Outlays

 
 
Social security and railroad retirement:

$814.5

4.90%

23.58%

 

Social security: old age and survivors insurance

$667.2

4.01%

19.31%

 

Social security: disability insurance

$140.1

0.84%

4.06%

 

Railroad retirement (excl. social security)

$7.2

0.04%

0.21%

 

Federal employees retirement and insurance:

$194.0

1.17%

5.62%

 

Military retirement

$54.3

0.33%

1.57%

 

Civil service retirement

$77.2

0.46%

2.23%

 

Veterans service-connected compensation

$59.4

0.36%

1.72%

 

Other

$3.2

0.02%

0.09%

 

Public assistance and related programs:

$55.5

0.33%

1.61%

 

Supplemental security income program

$50.3

0.30%

1.46%

 

Veterans non-service connected pensions

$5.2

0.03%

0.15%

 

Total: Retirement/ Disability

$1,064.0

6.40%

30.80%

 

Source: Office of Management and Budget. (11.3 3.1 10.1)

 

Table 5.2: Expenditures Included in Healthcare, 2013.

Program 2013

Billions of
Dollars

Percent of
GDP

Percent of
Budget

Medicare:

$583.8

3.51%

16.90%

Medicare: hospital insurance

$273.0

1.64%

7.90%

Medicare: supplementary medical insurance

$310.8

1.87%

9.00%

Medicaid

$265.4

1.60%

7.68%

Children's health insurance

$9.5

0.06%

0.27%

Veterans:

$51.8

0.31%

1.50%

Hospital and medical care for veterans

$43.6

0.26%

1.26%

Uniformed Services retiree health care fund

$8.2

0.05%

0.24%

Other Medical Care:

$15.6

0.09%

0.45%

Indian health

$4.3

0.03%

0.12%

Health resources and services

$7.3

0.04%

0.21%

Substance abuse and mental health services

$3.2

0.02%

0.09%

Other

$0.8

0.00%

0.02%

Total: Medical care

$926.1

5.57%

26.81%

Source: Office of Management and Budget. (11.3 3.1 10.1)

 

Table 5.3: Non-Medical and Non-Retirement/Disability Programs, 2013.

Program 2013

Billions of
Dollars

Percent of
GDP

Percent of
Budget

Unemployment Assistance

68.3

0.41%

1.98%

Assistance to students:

58.0

0.35%

1.68%

Veterans education benefits

13.2

0.08%

0.38%

Student assistance—Department of Education and other

44.9

0.27%

1.30%

Housing assistance

39.3

0.24%

1.14%

Food and Nutrition Assistance:

109.6

0.66%

3.17%

SNAP (formerly Food stamps) (including Puerto Rico)

82.5

0.50%

2.39%

Child nutrition and special milk programs

19.3

0.12%

0.56%

Supplemental feeding programs (WIC and CSFP)

6.6

0.04%

0.19%

Commodity donations and other

1.1

0.01%

0.03%

Public assistance and related programs:

116.9

0.70%

3.38%

Family support payments to States and TANF

21.2

0.13%

0.61%

Low income home energy assistance

3.5

0.02%

0.10%

Earned income tax credit

57.5

0.35%

1.66%

Payments to States for daycare assistance

5.0

0.03%

0.15%

Payments to States—Foster Care/Adoption Assist.

6.8

0.04%

0.20%

Payment where child credit exceeds tax liability

21.6

0.13%

0.63%

Other public assistance

1.2

0.01%

0.04%

All other payments for individuals:

6.1

0.04%

0.18%

Coal miners and black lung benefits

0.4

0.00%

0.01%

Veterans insurance and burial benefits

1.2

0.01%

0.04%

Aging services programs

1.4

0.01%

0.04%

Energy employees compensation fund

1.2

0.01%

0.04%

Refugee assistance and other

1.8

0.01%

0.05%

Total: Non- Medical/ Retirement/ Disability Programs

398.2

2.40%

11.53%

Source: Office of Management and Budget. (11.3 3.1 10.1)

 

Table 5.4: Ten Largest Items in Other Payments for Individuals, 2013.

Program 2013

Billions of
Dollars

Percent of
GDP

Percent of
Budget

SNAP (formerly Food stamps) (including Puerto Rico)

$82.5

0.50%

2.39%

Unemployment Assistance

$68.3

0.41%

1.98%

Earned income tax credit

$57.5

0.35%

1.66%

Student assistance—Department of Education and other

$44.9

0.27%

1.30%

Housing assistance

$39.3

0.24%

1.14%

Payment where child credit exceeds tax liability

$21.6

0.13%

0.63%

Family support payments to States and TANF

$21.2

0.13%

0.61%

Child nutrition and special milk programs

$19.3

0.12%

0.56%

Veterans education benefits

$13.2

0.08%

0.38%

Payments to States—Foster Care/Adoption Assist.

$6.8

0.04%

0.20%

Total: 10 Largest in Other Payments for Individuals

$374.6

2.25%

10.84%

 

Source: Office of Management and Budget’s (11.3 3.2 10.1)

See Also:

Something to Think About

How a Conservative Would Balance the Federal Budget

Why Democrats Lose Elections

Waste, Fraud, and Abuse in the Federal Budget

Lower Taxes, less Government, and Deregulation

A Note on Tax-Expenditure Entitlements and Welfare

A Note on Taxing Corporations

Budget Projections, Federal Debt, Social Security, and Medicare

Social Security, Healthcare, and Taxes

Where Did All the Money Go? How Lower Taxes, Less Government, and Deregulation Redistribute Income and Create Economic Instability

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