00:01
Hey guys and welcome to another economics example where we're going to be talking a little bit about federal government spending.
00:06
So for this example, we're just going to go through a couple things and categorize them in the three types of federal government spending.
00:15
So first you have direct spending, which is just the federal government buying things that it needs, put simply.
00:23
Next, you have transfer payments, which is the government paying money to people not really expecting much in return.
00:29
And then you have grant and aid payments, which is just the federal government giving money to lower levels of government for whatever they need.
00:39
So let's put a couple of these in here, a couple examples.
00:45
So an example of direct spending might be, say, buying equipment for the irs.
00:56
An example of transfer payments would be, say, disability benefits.
01:11
And then an example of a grant -in -aid payment would be any kind of disaster control payment.
01:22
That is the worst sra, i think i've ever seen.
01:27
Disaster control payments.
01:30
So recently you might think like california wildfire, the federal government would have sent money to california to help them deal with that problem...