Chapter 1 Outline States Fundamental units of government in American federalism Federalism States share power with national government American government is a centric system State and local governments have the most direct influence on our daily lives by the policies that they create States hold fundamental powers states key Gov in America Total Government Spending 6 5 trillion 67 federal 33 state and local o It appears to be 58 federal spending and 42 state and local spending but the federal government gives 9 553 billion to states to use via grants Federal Spending most to least 1 Health 2 Income Security 3 Education 4 General Public services 5 National Defense 6 Economic affairs 7 Housing and community services 8 Recreation and culture Healthcare Most expensive service 25 Fastest growing because o Rising cost of healthcare o Rising population of people over 65 who are eligible for o Increasing number of children parents ect who are eligible Medicare for Medicaid Income security Social security 100 federal government welfare social services and unemployment benefits 1 spending from federal government over 1 2 billion Education others Largest spending of state and local governments Paid for by taxes Some states and areas have higher taxes than General Public Service The federal government pays for 75 of interest payments States cannot borrow money but the Federal Gov t can emergencies National Defense Economic Affairs resources 100 paid for by the National government Transportation general economic and labor affairs natural State and local governments invest money for states to be business friendly for the economy to grow Public Order Safety State and local government pays the most here This includes police forces fire departments ect Some states pay more for this because they have 0 tolerance for crimes Housing and Community Services Government housing Fannie Mae Freddie Mac Mostly federal federal grants Rec Culture Mostly state and local governments Per Capita Income Average income of every man woman and child in the state divided by population Differences among states are interrelated More sophisticated state centric view is superior State and local government spend close to of all government revenues in the US and pass most of the laws that closely affect us 1882 Chinese Exclusion Act PUBLIC POLICY MATTERS Immigration Reform Act of 1965
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