Where Is the Money You Pay to the Government Going?

On Tuesday night (7th) at 9 PM ET, President Joe Biden will address the American people in his second “State of the Union” speech. This has been a tradition in U.S. politics since 1790, initiated by George Washington, the first president of the country.

During the speech, the president typically tries to remind lawmakers and the nation of his achievements and plans for the coming years, including how and where your money will be spent. Biden is expected to address several issues including inflation, Covid-19, mass shootings, police reform, and infrastructure.
The Nation in Numbers

Before the speech, get to know data about the country’s situation. The annual report conducted by USAFacts includes information on some of the most commonly addressed topics in the State of The Union. Use this data to measure the country’s progress up to now.
How is the American economy doing?

• The U.S. GDP increased by 2.1% in 2022, after rising 5.9% in 2021.
• Year-over-year inflation was at 6.5% in December 2022.
• The Federal Reserve raised interest rates seven times in 2022 and again on February 1, 2023, to curb inflation, increasing the rate to nearly 4.5-4.75%.
• When adjusted for inflation, the average hourly wage of workers fell by 1.7% in December 2022 compared to the previous year.
• The unemployment rate was 4.0% at the beginning of 2022 and ended the year at 3.5%.

How much does the government spend and where does the money go?

• The federal government collected $5.0 trillion in revenue in fiscal year 2022 or $15,098 per person.
• The federal government spent $6.5 trillion in fiscal year 2022 – or $19,434 per person – including funds distributed to states.
• Federal spending decreased by 12.4% in fiscal year 2022, after remaining relatively stable in fiscal year 2021.
• The federal government spent 28.7% more than it collected in fiscal year 2022, resulting in a deficit of $1.45 trillion.
• The national debt reached $30.9 trillion in the last fiscal year.

What is the health situation in the country?

• About 3.5 million people died in 2021, 2.4% more than in 2020 and 21.3% more than in 2019. The three leading causes – cancer, heart disease, and COVID-19 – accounted for 50% of deaths.
• The federal government spent $173.3 billion on public health in 2022 – 13.6% more than in 2021, but 10.7% less than in the first year of the pandemic.
• In 2021, 8.3% of the population (27.2 million Americans) were uninsured, down from 8.6% in 2020, but up from 8.0% in 2019.

What are the results in the educational system?

• Public schools spent an average of $15,375 per student in the 2019-2020 school year, more than in any previous year after adjusting for inflation.
• Of the students who started high school in 2010, 23% completed a four-year college degree by 2020. Another 27% enrolled in college but have not yet graduated.
• Forty-eight percent of the population aged 25 and older hold a college degree.
• On average, people with a bachelor’s degree earned $1,432 per week in 2022, about 68% more than workers with only a high school diploma.

How many people are immigrating to the U.S. today?

• Immigration to the U.S. increased in fiscal year 2021, after a decline in 2020.
• About 13.6% of people in the U.S. are foreign-born.
• Government spending on immigration and border security decreased in 2022, after reaching a record high in 2020 and remaining elevated in 2021.
• The number of immigrants rejected or apprehended at the borders reached 2.8 million in fiscal year 2022, the highest number since at least 1980.
• Immigration officials removed 89,000 people from the U.S. in 2021. This is the lowest number of removals since 1996.
• The federal government estimates that 11.4 million undocumented immigrants were living in the country in 2018.

What is the defense situation?

• Defense spending decreased by 5.3% in 2022 and was 16.7% lower than the peak in 2010.
• Afghanistan and Israel received the majority of U.S. foreign aid between 2017 and 2020. This aid decreased by 20% and 1% in 2020, respectively.
• The country spent $57.0 billion on foreign aid in fiscal year 2020, an increase of 4.6% from fiscal year 2019.

Is the country becoming safer?

• Violent crimes fell by 1.7% in 2021, after rising by 4.6% in 2020. Property crimes decreased for the second consecutive year in 2021 by 4.5%.
• Governments spent $267 billion on law enforcement and corrections in 2020 – the highest since at least 1980, after adjusting for inflation.
• More than 5.5 million people were in prison or on probation in 2020.
• The share of prisoners whose most serious offense, as defined by the FBI, is a drug-related crime has decreased annually since 2007.
• The increase in suicides and firearm homicides raised the country’s firearm mortality rate from 13.7 to 14.8 deaths per 100,000 people between 2020 and 2021.

What kind of support does the government offer to people?

• Middle-class families received $31,578 in government assistance and paid $18,014 in taxes in 2020.
• More employees are receiving vacation, sick leave, retirement benefits, and paid family leave than in 2010.
• Total federal assistance to individuals decreased by 38.6% in fiscal year 2022 but was 42.2% higher than in fiscal year 2019.
• The poverty rate increased in 2020 and 2021, reaching 11.6% in 2021.
• The number of people living on the streets increased for the fourth consecutive year in 2020.

Source: USAFacts