The following analysis is based on data from the U.S. Bureau of Economic Analysis. The values are presented on a per household basis (See US Federal Government Costs) and represent the average for all states. Values are presented with the Federal Government's contributions removed so the numbers represent only the money collected and spent by state and local governments for your benefit.

Income (per family)      1960    1960Today      2008
State Income Tax          $   80       $    553       $ 2,416
Sales Taxes                 $ 231        $ 1,606       $ 3,648
Property Taxes              $ 307       $ 2,132       $ 3,230
Total Revenue               $ 843        $ 5,858      $15,786
Total (w/o Fed. Grants)  $ 767        $ 5,331      $12,637
 
Expenses (per family)   1960     1960Today     2008
General Public Service    $   66       $   461       $ 1,494
Fire                               $    21       $  145        $   317
Police                            $   38       $   263       $   807
Law Courts                     $   11       $     79       $   367
Prisons                          $   13       $     92       $   631
Highways                       $  199       $ 1,382     $ 1,601   Transit & Railroads          $     2       $    13       $   128
Public Schools               $   297      $ 2,067      $ 4,758
Higher Education             $    49      $    342     $ 1,061
Water & Sewer                $    42      $   290       $   384

Editor's Analysis:
The money collected by the state and local governments has increased over $7000 in adjusted dollars over the average yearly collections in 1960. Note the huge increases in costs for law enforcement, the bureaucracy (General Public Service) and of public schools. However, also note the amount we spend on highways today is very close in real terms to what was spent in 1960.









7/20/2008
Getting medical data for 1960 that is comparable to today was a considerable challenge. Some came from a series of N.Y. Time articles, written in 1960, discussing Blue Cross's request for a rate hike. Other data came from the U.S. Census Bureau. Since the quality of medical care has improved since 1960, some of the cost comparisons may not be completely "apples to apples".  As is our tradition, some data is presented on a "per household" basis to allow you to relate it to your own family.

Yearly Expenses            1960    1960Today     2008
(per household)

Total Health Care             $ 425      $ 2,952     $13,019
Group Insurance              $ 107       $   741     $13,968

Insurance Coverage       1960   1960Today     2008
Hospital Room                 $  10      $      70    $     275
Child Birth                       $ 120      $    834    $  5,000

Other Data:                                     1960       2008
Physicians (per 1000 households)       4.75        7.47
Infant Mortality (per 1000 births)          26.0         6.9
Life Expectancy (at birth)                    69.7         77.8  

Editor's Analysis:
It appears that the cost of health care has increased approximately four times faster than the CPI inflation rate. This is partly due to the improved medical care and that we are also living about eight years longer. Also the increased use of insurance has probably increased demand for services and the provider's fear of litigation has resulted in expanded use of tests and more treatments.

The nearly 20 times increase (or $13,227) in group insurance premiums over the CPI inflation rate, suggests that those with insurance are possibly subsidizing those who are covered by Medicare, Medicaid or are uninsured.






7/27/2008
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The following analysis uses US Census Bureau's value for numbers in 1960 as 52,799,000 and the current estimated number of households as 113,879,801. The categories presented were selected to highlight the major areas that could be fairly compared between 1960 and today. Also see Family Perspective.

Income (per family)     1960    1960Today     2008
Income Tax (personal)   $  874      $ 6,074     $ 9,167
Social Security             $  219      $ 1,522     $ 7,357
Total Tax Receipts        $1,884     $13,096    $21,138

Expenses (per family)  1960    1960Today    2008
Defense Department     $  865       $ 6,009     $ 4,582
State Department         $     5        $     34     $    259
Interior Department       $   15        $   105      $   290
Agriculture Dept.          $  112        $   780     $    228
Justice Department      $     5        $     37      $   360
Health, Ed. & Welfare   $   70        $  485      $ 3,740
NASA                          $   14        $    98       $   207
Veterans Admin.          $  102        $   711     $   613
Highway Trust Fund     $    53        $  368       $   337
Social Security            $   230       $ 1,60      $ 4,817
Medicare                     $     0        $      0      $ 2,897

Debt (per family)          1960    1960Today    2008
Budget Deficit              $    73       $   507      $ 2,179
Total national debt        $5,381      $37,396    $79,098

Editor's Analysis:
The money collected by the federal government, via direct and indirect taxes, from an average household has increased 61% faster than the CPI adjusted inflation rate. In equal terms, our national debt has more than doubled from 1960 to today.











7/13/2008