As you can see below in the breakdown or percentages of federal spending, most of it goes to social programs which benefit the poor and middle class. Medicare and social security will go broke unless more money is allocated to them, which is usually the way it goes with federal programs.
![[Image: policybasics-wheretaxdollarsgo-f1.png]](https://images.weserv.nl/?url=www.cbpp.org%2Fsites%2Fdefault%2Ffiles%2Fthumbnails%2Fimage%2Fpolicybasics-wheretaxdollarsgo-f1.png)
As you can see below defense spending is decreasing under the republican-controlled congress. Notice how it went rose under the Obama administration with the split congress.
Recent Defense Spending
Defense spending declined in the 1990s after the end of the Cold War and increased in the 2000s during the War on Terror.
![[Image: usgs_chart2p32.png]](https://images.weserv.nl/?url=www.usgovernmentspending.com%2Finclude%2Fusgs_chart2p32.png)
Chart 2.32: Recent Defense Spending
Defense spending stood at 6.8 percent of GDP at the height of the Reagan defense buildup. But, beginning even before the breakup of the Soviet Union it began a decline, reaching below 6 percent in 1990, below 4 percent in 1996 and bottoming out at 3.5 percent of GDP in 2001, about half the level of 1985.
But 9/11, the terrorist attack on iconic US buildings in 2001, changed that, and defense spending began a substantial increase in two stages. First, it increased to 4.6 percent by 2005 for the invasion of Iraq, and then to 5.0 percent in 2008 for the the “surge” in Iraq.
Spending increased further to 5.7 percent in 2011 with the stepped up effort in Afghanistan. Defense spending is expected to decline to 4.5 percent of GDP in 2015 and 3.8 percent GDP by 2020.
As you can see below defense spending is decreasing under the republican-controlled congress. Notice how it went rose under the Obama administration with the split congress.
Recent Defense Spending
Defense spending declined in the 1990s after the end of the Cold War and increased in the 2000s during the War on Terror.
Chart 2.32: Recent Defense SpendingDefense spending stood at 6.8 percent of GDP at the height of the Reagan defense buildup. But, beginning even before the breakup of the Soviet Union it began a decline, reaching below 6 percent in 1990, below 4 percent in 1996 and bottoming out at 3.5 percent of GDP in 2001, about half the level of 1985.
But 9/11, the terrorist attack on iconic US buildings in 2001, changed that, and defense spending began a substantial increase in two stages. First, it increased to 4.6 percent by 2005 for the invasion of Iraq, and then to 5.0 percent in 2008 for the the “surge” in Iraq.
Spending increased further to 5.7 percent in 2011 with the stepped up effort in Afghanistan. Defense spending is expected to decline to 4.5 percent of GDP in 2015 and 3.8 percent GDP by 2020.
