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In this brief, authors Michael Ettlinger, Jordan Hensley, and Julia Vieira analyze how much the governments of different countries spend, and on what, to illuminate the range of fiscal policy options available and provide a basis for determining which approaches work best. They report that the United States ranks twenty-fourth in government spending as a share of GDP out of twenty-nine countries for which recent comparable data are available. The key determinant of where countries rank in overall government spending is the amount spent on social protection. The United States ranks last in spending on social protection as a share of GDP and twenty-second in per capita spending. The United States ranks at or near the top in military, health care, education, and law enforcement spending. Measuring government spending by different methods and including tax expenditures does not appear to significantly alter the conclusion that the United States is a low-tax, low-spending country relative to the other countries examined, particularly when compared to its fellow higher-income countries. [This paper is an evolution of a previous work, "Comparing Public Spending and Priorities Across OECD Countries" (ED606844).]

At the heart of progressivism is the belief that government--not big government, or small government, but effective government--has a critical role to play in ensuring the well being of its citizens. Public spending serves an important function in pursuing economic growth objectives while ensuring that gains are widely distributed to promote broad-based increases in living standards. But governments' relative fiscal positions, how much they spend, and the composition of that spending is likely to make a difference in achieving these objectives. Member countries of the Organization for Economic Cooperation and Development--an international organization consisting primarily of developed, free-market economies--vary significantly in (1) their relative fiscal positions, or deficits and surpluses; (2) their amount of public spending; and (3) how they allocate spending across different categories to reflect priorities. This descriptive study examines how OECD countries have addressed the current economic situation through their fiscal balance sheets, and then goes on to consider similarities and differences in public spending across OECD countries through the prism of economic and social objectives. Countries are compared according to three relative measures of government spending: spending as a share of GDP, spending per capita, and spending by category as a percentage of total government expenditure.