II. INTRODUCTION Governments in countries all around the world are straightjacketed by debt. Debt repayments reduce the amount available for everything else the state needs to spend money on, so resources for public services are really pre-determined, because debt servicing has to come first. How the remainder is allocated is also a problem in the majority of cases. Over the past century, government spending grew to an average of forty five percent of gross domestic …showed first 75 words of 1730 total…

…showed last 75 words of 1730 total…raisers. Otherwise, there would be a shortage of what people need to pay taxes. ------------------------------------------------------------------------ **Bibliography** Kathy Guthrie, State Government Health Spending Nearly Doubled Last Decade, http://www.mnplan.state.mn.us/press/health.html, 1994. Kaz, How Government Spending Creates Jobs, http://www.siteofthesentient.com/inframe/spending.html Government Spending and Financing, http://perspicuity.net/civics/gov-acct.html Rud Garfield, Government Spending and Economic Growth, http://www.house.gov/jec.fiscal.budget/spending/spending.htm, 1995.