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Throughout the Cold War, the largest expenditure by the US government was the various welfare programs such as Social Security, Medicare, and Medicaid. By the late 1980s, these services constituted nearly half of the entire budget.
However, most people do not consider welfare programs when discussing the budget since those expenditures are outside of the discretion of Congress; they have to be spent. Of the discretionary spending, the defense budget was certainly the largest single expenditure.
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