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World War II and the Growth of the U.S. Federal Government

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  • Hugh Rockoff

    (Rutgers)

Abstract

It is frequently claimed that World War II contributed to the growth of big government in the United States. One theory is that agencies that were given additional resources or authority during the war were able to retain them after the war because the agencies and their supporters were able to take advantage of inefficiency and inertia in the political process. The public, moreover, it is said, had gotten use to higher taxes during the war, so it was not necessary for the government to lower taxes all the way to their prewar level. This is the famous "ratchet" hypothesis. In this paper, however, I argue that there is little evidence for this phenomenon. On the other hand, I argue that the perception that government spending and control of the economy had proved successful during the war contributed to the ongoing shift in public attitudes in favor of big government.

Suggested Citation

  • Hugh Rockoff, 1998. "World War II and the Growth of the U.S. Federal Government," Departmental Working Papers 199801, Rutgers University, Department of Economics.
    • Handle: RePEc:rut:rutres:199801
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    References listed on IDEAS

    as
    1. Alan T. Peacock & Jack Wiseman, 1961. "The Growth of Public Expenditure in the United Kingdom," NBER Books, National Bureau of Economic Research, Inc, number peac61-1.
    2. Peltzman, Sam, 1980. "The Growth of Government," Journal of Law and Economics, University of Chicago Press, vol. 23(2), pages 209-287, October.
    3. Peltzman, Sam, 1980. "The Growth of Government," Working Papers 1, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    4. M. Slade Kendrick & Mark Wehle, 1955. "A Century and a Half of Federal Expenditures," NBER Books, National Bureau of Economic Research, Inc, number kend55-1.
    5. M. Slade Kendrick & Mark Wehle, 1955. "Introduction to "A Century and a Half of Federal Expenditures"," NBER Chapters, in: A Century and a Half of Federal Expenditures, pages 1-2, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Beetsma, Roel & Cukierman, Alex & Giuliodori, Massimo, 2005. "Wars, Redistribution and Civilian Federal Expenditures in the US over the Twentieth Century," CEPR Discussion Papers 5356, C.E.P.R. Discussion Papers.

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    More about this item

    Keywords

    war;

    JEL classification:

    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-

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