In economic statistical observance, per capita spending means the spending by the government per head. Per capita analysis is useful where the absolute data is not comparable and is independent of the country size (Statista, 2019). Per capita data makes numbers that are hard to grasp more understandable because it puts them into context. In the state of Louisiana, the per capita expenditure for different sectors, according to the data presented by the tax policy center by June 18, 2020, totaled $9,145 (Tax Policy Center, n.d.). In the education sector, the state’s per capita expenditure was $1731 for elementary and secondary education and $745 for higher education. This expenditure was among the lowest when compared to states like the District of Columbia ($3,999), New Jersey ($3,066), and Vermont ($2,644) that recorded higher per capita expenditures.In the public welfare and health sector, the state recorded a per capita expenditure of $2421 for public welfare and $698 for health and hospitals (Tax Policy Center, n.d.). The spending was among the highest when compared to other states. Besides, the state spent $515 on highways and was one with the lowest expenditures when compared to other states such as North and South Dakota, whose expenditure was more than a thousand dollars. Lastly, the state’s per capita spending on police was $352, which is relatively average of the amount spent by other states. In terms of the policy implications of the state’s per capita expenditure, the high spending states would have better educational facilities than Louisiana. Besides, the expenditure on highways means that the state’s highway infrastructural development would be less compared to higher spending states. However, the higher expenses in public welfare and police protection imply better living conditions of the people and better enforcement of security. A low spending state experience more economic growth. Besides, the state taxes less from the residents, leaving people with more money in the pockets for spending. However, low spending states tend to have high costs of living because of inflation. Conversely, high spending states tend to have a lower cost of living because of low rates of inflation. However, the residents in these states are taxed more to raise more funds for expenditures.
Statista. (2019, July 2). Topic: Per capita expenditure. https://www.statista.com/topics/831/per-capita-expenditure/
Tax Policy Center. (n.d.). State and local general expenditures, per capita. https://www.taxpolicycenter.org/statistics/state-and-local-general