|
| | |
| Click
images to enlarge |
|
|
After
surging for more than seven years, revenue growth slowed dramatically
in 2001, even before accounting for the 2001 tax relief act. The stock
market downturn begun in March 2000 and the recession that started
in January 2001 explain most of the decline in revenues. |
|
Steady
discretionary spending levels prevailed during the first five years
of the past decade. Since 1998, though, the climb in spending has
been persistently steep. |
|
The
economic downturn stands out as the biggest factor causing the projected
surplus to fade away. |
|
|
Over the last five years, spending growth at most major federal agencies,
and by the U.S. government overall, has far exceeded the rise in median
household income (depicted by the vertical blue line). |
|
The
48% rate of growth in federal spending over the last six years is
almost two times the 25% growth of family income. At certain major
departments, growth has run two to three times higher than that of
typical family income. |
|
|
|