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My Cato Institute colleague Chris Edwards points to one of the areas where federal spending is out of control:

Most people know that federal spending and budget deficits are soaring. But an equally troubling trend is that the government is funding a growing array of activities that used to be left to state governments, businesses, charities, and individuals. An increasing part of American society is suckling on the federal subsidy teat.  

 The accompanying chart shows that there are 1,804 federal subsidy programs, and hundreds of these were added this decade. The data comes from the Catalog of Federal Domestic Assistance (www.cfda.gov), an official listing of all federal subsidies, including grants, loans, insurance, scholarships, and other types of benefits.  

The CFDA was created in the 1960s because politicians needed a guide to help their constituents access all the new benefits under Great Society programs. By 1970, there were 1,019 federal subsidy programs, and the number rose further in late-1970s before being cut back in the early 1980s under President Ronald Reagan.  

The number of subsidies started expanding again in the late-1980s, but leveled out in the late-1990s as Congress briefly restrained the budget. This decade, budget restraint has vanished and the number of subsidy programs has exploded 25 percent.

As in so many other areas, Republicans are as complicit as Democrats in making Americans dependent on government.  It would be nice if the GOP "listening tour" caused party officials to actually put our money where their mouths are, so to speak, when it comes to fiscal responsibility.

View all comments (12) | Leave a comment

Pingback| 5.8.09 @ 6:00PM

Federal Subsidy Programs on the Rise | But As For Me links to this page. Here’s an excerpt:

Federal Subsidy Programs on the Rise | But As For Me TWITTER • FACEBOOK But As For

Trackback| 5.8.09 @ 9:03PM

The American Spectator : AmSpecBlog : Federal Subsidy Programs on the Rise, on PunditKix, links to this page. Here’s an excerpt:

Trackback from PunditKix.com

Pingback| 5.8.09 @ 11:13PM

OBAMA’S BUDGET 101 « FactReal links to this page. Here’s an excerpt:

…EASY WAY TO UNDERSTAND OBAMA’S BUDGET, SPENDING, DEFICIT, ETC. CHART SOURCES Chart #1 Chart #2 Chart #3 Chart #4 BAILOUT SUMMARY $11 Trillion in Bailouts. Billions in Bribes. RELATED Federal Subsidy Programs on the Rise Obama’s budget-cutting tools Obama slashes anti-union corruption budget at DoL Support the Cap-and-Trade Tax Disclosure Act Why the national eco-tax is in trouble This entry was posted on…

Big J| 5.9.09 @ 11:05AM

While the private sector cut almost 540,000 jobs last month, the federal government added 70,000.

Stimulation you can believe in.

Tom Paine| 5.9.09 @ 8:26PM

Big J --

Those 70,000 jobs were almost entirely created for the census. The census is something the government is bound to do by the Constitution.

Slim| 5.11.09 @ 9:29AM

All
Reviewing the Non Profit job openings shows the Stimulus monies is reaching these folks.
Temps, Project Management, Daily workers, all are being sought, in the NGO world. The funds provided by the Recovery and Reinvestment act now are arriving. Expect the NGO and PAC world to becom more and more active.
end
Semper Fi

biniki| 9.1.09 @ 10:07PM

bikini
bikini swimwear

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More Blog Posts by Doug Bandow

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