What is Government Spending?
Transfer payments
- Unemp. compensation benefits
- Welfare and food stamp programs
- Social Security and Medicare benefits
- Farm price supports
- deficiency payments,
- Farm Program Transition Payments
Notes:
Government spending also includes what are known as transfer payments to individuals such as unemployment compensation benefits, welfare and food stamp programs, social security and medicare benefits, and farm price support programs. Under old Farm Bills, many farmers qualified for “deficiency payments” if the market price of the commodities they sold were below a government mandated “target price”. These programs are now being phased out under the new Farm Bill. During the phase out period, many crop producers are receiving Farm Program Transition Payments to allow them to adjust to a more market-oriented agricultural production system