I suspect your 1861 expenditure numbers are actually for 1860.
Spending accelerated greatly, as always, once the war started. The 9 months of war during 1861 would have blown that percentage all to pieces.
In raw numbers, it’s always wise to remember the entire federal expenditure in 1860 was $60M. With the most tyrannical intentions in the world, that just won’t buy much of a dictatorship, even with 1860 dollars.
Sherman Logan:
"I suspect your 1861 expenditure numbers are actually for 1860." Here are some of the raw numbers:
- 1858 Buchanan $4.0 billion GDP, $87 million spending = 2.2% of GDP
- 1859 Buchanan $4.4 billion GDP, $85 million spending = 1.9% of GDP.
- 1860 Buchanan $4.3 billion GDP, $78 million spending = 1.8% of GDP.
- 1861 Lincoln $4.6 billion GDP, $80 million spending = 1.7% of GDP.
- 1862 Lincoln $5.8 billion GDP, $486 million spending = 8.6% of GDP.
- 1863 Lincoln 7.6 billion GDP, $726 million spending = 9.5% of GDP.
- 1864 Lincoln $9.5 billion GDP, $878 million spending = $9.3% of GDP.
- etc...
By 1888 Federal spending returned to 2.3% of GDP.
Your comments about the timing of these expenditures may be somewhat correct, since doubtless "fiscal year 1862" began sometime in 1861.