Economic conditions matter. Inflation increases what we pay for everything from food to houses. When unemployment is high, some of us do not have a job. And low economic growth makes it harder to get promoted or gain a higher salary. The question is, how much can (and should) the government do to ensure a Goldilocks economy — one with low inflation, strong economic growth, and low unemployment?

A large chunk of America’s economy involves international trade – buying (importing) and selling (exporting) goods and services across national borders. International trade has clear benefits: Americans can purchase a wider range of goods, often cheaper than from domestic producers. Trade also creates new markets for American businesses, allowing them to sell more products, and increasing profits and employment. At the same time, by increasing competition, trade can force American companies out of business and workers out of jobs because of foreign competition. Faced with these benefits and costs, is free trade a good idea – and for whom?

In the fiscal year ending on September 30, 2022, the federal government spent over six trillion dollars on providing goods, services, and payments to Americans. Much of this spending was on national defense and expenditures known as entitlement programs such as Social Security and Medicare (for details on these programs, see the briefs listed in the For Further Reading section). The rest of the budget, almost a trillion dollars every year, is discretionary spending, covering everything from law enforcement and road building to foreign aid and education. What do Americans get for this substantial annual expenditure?