Government and Fiscal Policy in American Economic History

Author(s):  
John Joseph Wallis

Over the last 225 years, government finances in the United States have gone through three distinct stages. In the first stage, 1790–1850, state governments actively pursued policies to promote economic development and financed them from revenues from state investments. In the second, 1850–1930, local governments became the most important level of government, as measured by revenues and expenditures, and revenues shifted toward the property tax. In the third period, 1930 to the present, the national government became the most active and largest level of government, financed through income and payroll taxes, and developed an extensive network of grants to state and local governments. The chapter tracks the changes in sources of revenues and purpose of expenditures, with specific attention paid to military spending over the entire period.

Author(s):  
Charlotte L. Kirschner ◽  
Akheil Singla ◽  
Angie Flick

As more and more of the population moves to areas prone to natural hazards, the costs of disasters are on the rise. Given that these events are an eventuality, governments must aid their communities in promoting disaster resilience, enabling their communities to reduce their susceptibility to natural hazards, and adapting to and recovering from disasters when they occur. The federal system in the United States divides these responsibilities among national, state, and local governments. Local and state governments are largely responsible for the direct provision of services to their communities, and the Stafford Act of 1988 provides that the federal government will pay at least 75% of all eligible expenses once a presidential major disaster declaration has been made. As a result, state and local governments have become largely reliant on transfers from the federal government to pay for disaster relief and recovery efforts. This system encourages state and local governments to ignore the risks they face and turn to the federal government for aid after a disaster. This system also seems to underemphasize an important mechanism that can bolster disaster resilience: financing the costs of disasters in advance through ex ante budgeting. Four tools for budgeting ex ante—intergovernmental grants, disaster stabilization funds, the municipal bond market, and hazard insurance—are described and examples of their use provided. Despite limited use by state governments, these tools provide governments the opportunity to build community resilience to disasters by budgeting ex ante for them.


2020 ◽  
Vol 32 (5) ◽  
pp. 745-758 ◽  
Author(s):  
Philip G. Joyce ◽  
Aichiro Suryo Prabowo

PurposeThis paper reviews the response of both the national and state governments in the United States to the coronavirus pandemic and discusses budgetary challenges that are likely to be faced by the country over the next several years.Design/methodology/approachThe paper uses government sources, analysis by internal and external think tanks and contemporaneous media accounts to describe both the problem and the governmental responses.FindingsSince the first cases appeared in the US in early 2020, and particularly as the numbers started to expand substantially by March of that year, governments at all levels have worked to both respond to the immediate public health crisis and mitigate the economic effects of the pandemic. This included some immediate actions by the Federal Reserve to introduce more liquidity and four separate pieces of legislation passed in March and April 2020. The effect of this legislation has been to add $2.5 tr to 2020 and 2021 deficits. State and local governments, meanwhile, face years of budget shortfalls, which will require them ultimately to raise taxes and cut spending and may also require additional fiscal stimulus from the federal government. The magnitude of the fiscal effects will be driven by whether there is a second wave, how long the recession lasts, and what additional responses will be necessary in order to get the pandemic under control and deal with its aftermath.Originality/valueThe paper is likely the first to summarize the information about the federal and state responses, and the likely future impacts, in a single place.


2010 ◽  
Vol 2 (3) ◽  
pp. 237-248 ◽  
Author(s):  
Kyle Andrew Poyar ◽  
Nancy Beller-Simms

Abstract State and local governments in the United States manage a wide array of natural and human resources that are particularly sensitive to climate variability and change. Recent revelations of the extent of the current and potential climate impact in this realm such as with the quality of water, the structure of the coasts, and the potential and witnessed impact on the built infrastructure give these political authorities impetus to minimize their vulnerability and plan for the future. In fact, a growing number of subnational government bodies in the United States have initiated climate adaptation planning efforts; these initiatives emphasize an array of climate impacts, but at different scales, scopes, and levels of sophistication. Meanwhile, the current body of climate adaptation literature has not taken a comprehensive look at these plans nor have they questioned what prompts local adaptation planning, at what scope and scale action is being taken, or what prioritizes certain policy responses over others. This paper presents a case-based analysis of seven urban climate adaptation planning initiatives, drawing from a review of publicly available planning documents and interviews with stakeholders directly involved in the planning process to provide a preliminary understanding of these issues. The paper also offers insight into the state of implementation of adaptation strategies, highlighting the role of low upfront costs and cobenefits with issues already on the local agenda in prompting anticipatory adaptation.


2019 ◽  
pp. 184-208
Author(s):  
David M. Struthers

This chapter examines the World War One period in which the federal, state, and local governments in the United States, in addition to non-state actors, created one of the most severe eras of political repression in United States history. The Espionage Act, the Sedition Act, changes to immigration law at the federal level, and state criminal syndicalism laws served as the legal basis for repression. The Partido Liberal Mexicano (PLM), Industrial Workers of the World (IWW), and other anarchists took different paths in this era. Some faced lengthy prison sentences, some went underground, while others crossed international borders to flee repression and continue organizing. This chapter examines the repression of radical movements and organizing continuities that sustained the movement into the 1920s.


Author(s):  
Jennifer L. Hochschild ◽  
Nathan Scovronick

AMERICANS CONTINUE TO FOLLOW the advice of Benjamin Franklin in making “the proper education of youth” the most important American social policy. Public education uses more resources and involves more people than any other government program for social welfare. It is the main activity of local governments and the largest single expenditure of almost all state governments. Education is the American answer to the European welfare state, to massive waves of immigration, and to demands for the abolition of subordination based on race, class, or gender. Although public schools in the United States are expected to accomplish a lot for their students, underlying all of these tasks is the goal of creating the conditions needed for people to believe in and pursue the ideology of the American dream. Our understanding of the American dream is the common one, described by President Clinton this way: “The American dream that we were all raised on is a simple but powerful one—if you work hard and play by the rules you should be given a chance to go as far as your God-given ability will take you.” The dream is the unwritten promise that all residents of the United States have a reasonable chance to achieve success through their own efforts, talents, and hard work. Success is most often defined in material terms, but everyone gets to decide what it is for himself or herself. The first man to walk across Antarctica talks about this idea in the same way as people who make their first million: “The only limit to achievement,” he said, “is the limit you place on your own dreams. Let your vision be guided by hope, your path be adventurous, and the power of your thoughts be directed toward the betterment of tomorrow.” The American dream is a brilliant ideological invention, although, as we shall see, in practice it leaves much to be desired. Its power depends partly on the way it balances individual and collective responsibilities. The role of the government is to make the pursuit of success possible for everyone. This implies strict and complete nondiscrimination, universal education to provide the means for pursuing success, and protection for virtually all views of success, regardless of how many people endorse them.


2020 ◽  
Vol 78 (10) ◽  
pp. 866-883 ◽  
Author(s):  
Jennifer L Harris ◽  
Jennifer L Pomeranz

Abstract Children’s diets in their first 1000 days influence dietary preferences, eating habits, and long-term health. Yet the diets of most infants and toddlers in the United States do not conform to recommendations for optimal child nutrition. This narrative review examines whether marketing for infant formula and other commercial baby/toddler foods plays a role. The World Health Organization’s International Code of Marketing Breast-milk Substitutes strongly encourages countries and manufacturers to prohibit marketing practices that discourage initiation of, and continued, breastfeeding. However, in the United States, widespread infant formula marketing negatively impacts breastfeeding. Research has also identified questionable marketing of toddler milks (formula/milk-based drinks for children aged 12–36 mo). The United States has relied exclusively on industry self-regulation, but US federal agencies and state and local governments could regulate problematic marketing of infant formula and toddler milks. Health providers and public health organizations should also provide guidance. However, further research is needed to better understand how marketing influences what and how caregivers feed their young children and inform potential interventions and regulatory solutions.


2017 ◽  
Vol 49 (2) ◽  
pp. 127-139 ◽  
Author(s):  
Beverly A. Cigler

Floods are the costliest natural hazard events in the United States in terms of lives and property losses. The financial costs of flood disasters are unsustainable, especially for the national government, which assumes the most costs while state and local governments have the greatest ability to avoid great losses due to their influence over land use, economic policy, and other areas that can help mitigate floods and reduce the high costs of relief and recovery. This article summarizes the types, causes, and occurrence of floods in the United States and their unsustainable economic and social costs. It explains that the growing burden to taxpayers from disaster response and recovery has resulted in increased interest by national decision makers in shifting more disaster responsibilities and costs to state and local governments. The article reviews the broad tool kit of mitigation strategies available to local governments and their residents in taking greater responsibility for the impacts of flood events.


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