Social welfare expenditures, fiscal year 1976

Area of Science:

• Economics
• Public Policy
• Social Welfare Studies

Background:

• Public expenditures for social welfare purposes experienced abnormal growth in 1976.
• This marked the second consecutive year of significant expansion in social welfare spending.

Purpose of the Study:

• To analyze the growth rate and contributing factors of social welfare expenditures in 1976.
• To assess the impact of economic conditions like recession and inflation on social welfare spending.

Main Methods:

• Analysis of aggregate public expenditures for social welfare.
• Adjustments for price and population changes to determine real growth rates.
• Calculation of the proportion of Gross National Product (GNP) dedicated to social welfare.

Main Results:

• Aggregate social welfare expenditures increased by 16%, reaching $331 billion.
• Real growth rate in social welfare expenditures was 8%, the highest since 1971.
• Social welfare expenditures rose from 19.7% of GNP in 1975 to 20.6% in 1976 (27.5% including private spending).

Conclusions:

• Recession and inflation were key drivers of increased social welfare spending.
• Cost-of-living adjustments and expanded benefits for the unemployed and needy contributed to the rise.
• Social welfare spending represented a growing share of the national economy in 1976.