Final answer:
U.S. government spending has increased in absolute dollar terms over the last 50 years, but it is important to consider inflation and population growth. Examining spending as a percent of GDP provides a more accurate comparison.
Step-by-step explanation:
In absolute dollar terms, U.S. government spending has significantly increased over the last 50 years. From $93.4 billion in 1960, it grew to $3.9 trillion in 2014. However, comparing spending over time in nominal dollars can be misleading due to inflation and growth in population and the real economy. To get a more accurate understanding, it is better to examine government spending as a percent of GDP over time.
In relative terms, examining government spending as a percent of GDP provides a more accurate picture of spending growth compared to the economic growth. This method adjusts for inflation and is a standard way to compare government spending across different time periods. It provides insight into how government priorities and responsibilities may have shifted over time, as well as the government's role in the economy.