Question

1. Explain how mandatory spending comes about relative to discretionary spending. Then assign the following programs to each: interest payments on the debt, national defense, Social Security, food stamps. (One page in length)

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Answer 1

E 49

Mandatory spending is the type of government spending that does not need to be specially approved by the US Congress, therefore it is the spending that is independent of the Appropriation Bill passed by US Congress. This is also called Entitlement. Therefore, US citizens enjoy the benefits of such entitlements as long as they are eligible for the benefits without the Congress requiring to approve it every year. On the other hand, Discretionary spending has to be approved by the US Congress by authority of the Appropriation Bill. Spending on the discretionary spending categories are discretional because they have to be agreed upon and passed by the Congress. If the Congress does not approve a spending category (or amount), it cannot be included in the Budget.

Therefore, categorization of the spending items is as follows.

(1) Interest payment on debt - Mandatory spending

(2) National defense - Discretionary spending

(3) Social security - Mandatory spending

(4) Food stamps - Mandatory spending