Mandatory v. Discretionary Government spending Mandatory v. Discretionary

Today’s Objective After today’s lesson, students will be able to… Explain the difference between mandatory and discretionary spending and how the government obtains the money it spends. Essential Skill Explicitly assess information and draw conclusions

Quick Review What is revenue? What is deficit? What are outlays? How does the Federal Government obtain revenue What are outlays? Which agency does the Federal Government give the most money to? What is deficit? When is the last time we had a surplus? What is debt? What is our current national debt?

Deficit and Debt scenarios Each group will represent one of our review terms (revenue, spending, deficit, and debt) As I read the following scenarios, decide whether your term would increase or decrease. Once you decide, raise your arrow in the correct direction Be prepared to explain your answer

Government Spending Sheet With a partner answer the questions on the sheet as well as the questions projected on the board – some will overlap Write your answers on the back of the sheet Label the parts of the pie that are mandatory spending and the parts that are discretionary

Different Types of Government spending What does controllable spending refer to? What is its other name? What examples of it can you find on the pie chart? What does uncontrollable spending refer to? Why has defense spending – as a percent of the overall budget – shrunk over the 20th century?

Quiz Answers Congress Bicameral Roper v. Simmons Lobbyists Judicial Activism

The Free Ride Problem Goods and services that are accessible and beneficial to all Things that you could benefit from, whether or not you paid! This is called the “Free Ride Problem” Hence the need for taxes The government provides goods and services to all but can’t afford to have “Free Riders” Privatize instead? Why keep it in the public sector?

Reflection Examine the Government Spending pie chart. Do you see any problems? What concerns do you have about the areas our government is spending money in? What changes do you feel need to be made?