Read Lee Johnson And Joyce's Public Budgeting Systems Chapte

Read Lee Johnson And Joyces Public Budgeting Systems Chapter 2 T

Read Lee, Johnson, and Joyce's Public Budgeting Systems, Chapter 2 – The Public Sector in Perspective. Briefly describe the relative sizes of the private and public sectors in the United States; the historical growth of local, state, and federal governments and the reasons for that growth; and the purposes of government expenditures with the sources of revenue used by these three main levels of government. Required Textbooks & Supplementary Materials Lee, Robert D., Johnson, Ronald W., and Philip G. Joyce. Public Budgeting Systems. 10th Edition. ISBN: . Your Initial Discussion Posts must be at least 450 words and must use at least one source outside of your textbook. This is a graduate-level course, so you will also be graded on spelling and grammar. Write professionally, not like a text or tweet. Always proof your work before you hit "submit." And make sure that you cite your work and provide a list of references. Your textbook is considered a reference.

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The relative sizes of the private and public sectors in the United States reflect the extensive role government plays in the economy and society. According to Lee, Johnson, and Joyce (2021), the private sector constitutes the majority of economic activity, comprising businesses, households, and non-governmental organizations that generate goods and services for profit. However, the public sector, which includes federal, state, and local governments, exerts significant influence through varied expenditures and services. As of recent data, the public sector accounts for approximately 35-40% of the gross domestic product (GDP), indicating its substantial presence alongside the private sector (U.S. Bureau of Economic Analysis, 2022). This proportion has grown over the decades due to increasing public responsibilities and expanding government functions.

Historically, the growth of local, state, and federal governments has been driven by several factors. Initially, government expansion was minimal, centered on basic functions like defense and law enforcement. However, as the economy and society evolved, governments expanded their roles to include social welfare, education, healthcare, infrastructure, and environmental regulation. The Great Depression of the 1930s marked a significant turning point, leading to increased federal intervention through New Deal policies aimed at economic recovery and social safety nets (Rothstein, 2017). Post-World War II, rapid economic growth, demographic changes, and technological advancements further necessitated larger government roles at all levels.

The growth of government expenditures is rooted in the need to address societal needs and promote economic stability. Government spending can be broadly categorized into consumption expenditures, social welfare programs, infrastructure development, and public safety services. Federal expenditures focus significantly on defense, social security, and healthcare, reflecting national priorities. State and local governments often allocate funds to education, public safety, transportation, and health services, directly impacting community quality of life. The rationale behind these expenditures is to provide public goods, correct market failures, reduce economic inequalities, and promote social stability (Wildavsky, 2017).

Funding these expenditures relies on diverse revenue sources. The federal government primarily depends on income taxes, payroll taxes, and corporate taxes. State and local governments generate revenue through sales taxes, property taxes, and income taxes, with the balance varying by jurisdiction. Federal revenues are highly progressive, designed to ensure redistribution and fund nationwide programs, whereas state and local revenues are often regressive, relying heavily on consumption and property taxes that may disproportionately impact lower-income populations. These revenue sources are integral to maintaining the public sector’s capacity to serve citizens effectively.

In conclusion, the public sector in the U.S. is substantial and continuously evolving to meet societal needs. Its growth over time has been shaped by economic, social, and political factors, with expenditures aimed at ensuring welfare, stability, and economic development. The sources of revenue—taxes and other income—are essential for supporting these functions, reflecting the complex interplay between government priorities and fiscal capacity. Understanding these dynamics is crucial for effective public budgeting and policy formulation.

References

• Lee, R. D., Johnson, R. W., & Joyce, P. G. (2021). Public Budgeting Systems (10th ed.). Cengage Learning.
• Rothstein, R. (2017). The Color of Law: A Forgotten History of How Our Government Segregated America. Liveright Publishing.
• U.S. Bureau of Economic Analysis. (2022). National Income and Product Accounts. https://www.bea.gov
• Wildavsky, A. (2017). Budgeting: A Comparative Theory of Budgeting Processes. Transaction Publishers.