Out of the $22,083 per person that Americans spent on government in 2016, we dedicated about 24 percent, or $5,380, to health care.1 This is almost triple what we spent on defense.
The second-largest spending category is social protection. These are programs that insure citizens against the destructive side of markets by providing a safety net for out-of-work Americans, the disabled, and the working poor. Included here are government contributions to the Unemployment Insurance Program (UIP) and our public pension system—Social Security. This figure also includes Trade Adjustment Assistance (TAA) for workers who’ve lost jobs because of free trade agreements. Lastly, it includes welfare benefits like Temporary Assistance for Needy Families (TANF) and the Supplemental Nutrition Assistance Program (SNAP), aka food stamps. About 20 percent of all government spending, or $4,4860 per person, goes to these social safety net programs.
Education and miscellaneous government services (including payments on the national debt) come in third and fourth, respectively. Defense spending just barely squeaks past economic affairs and into the number five slot, at around 9 percent of total government expenditures or $2k per person.
To put this data in better context, check out Part 2 of The Bargain.
