Government Spending
Federal Budget Process The Federal Budget 1. 2. Submits it to Congress in January, so it can be ready by the beginning of the fiscal year (Oct. 1 – Sept 30)
Federal Budget Process The Federal Budget 1. Prepared by the President 2. Approved by Congress Submits it to Congress in January, so it can be ready by the beginning of the fiscal year (Oct. 1 – Sept 30)
Federal Spending Categories I’m not sure if the students need to know these next three slides. The GSE on economics are a bit unclear – but so were the previous standards. There were questions on the EOCT about which category of spending a particular choice fell into. Probably good info to know anyways
Federal Spending Categories Social Security Medicare & Medicaid National Defense Income Security – unemployment, disability programs, WIC Interest on debt Non-defense Discretionary Spending (Education, Law Enforcement, Transportation, Post Office, etc.) I’m not sure if the students need to know these next three slides. The GSE on economics are a bit unclear – but so were the previous standards. There were questions on the EOCT about which category of spending a particular choice fell into. Probably good info to know anyways
Categories of State Spending
Categories of State Spending Public Welfare – welfare payments, housing subsidies Higher Education – colleges, universities, tech schools Highways State Pensions State Law Enforcement
Local Spending
Local Spending Public Education – (K-12) Public Safety Utilities Police, Sheriff, Fire Departments Utilities Hospitals Highways Local Amenities – parks, “civic beautification”
Deficit and Debt
Definition: Deficit A budget deficit is spending ________ than tax _________ in a given year A budget surplus is tax revenues _______ expenditures in a given year Deficits have been _______ over the last fifty years, due to __________ government spending This video is a little bit old, and biased but it explains how the debt got where it was https://www.youtube.com/watch?v=SV-xPS5-GxE
Definition: Deficit A budget deficit is spending more than tax revenues in a given year A budget surplus is tax revenues exceeding expenditures in a given year Deficits have been increasing over the last fifty years, due to higher government spending This video is a little bit old, and biased but it explains how the debt got where it was https://www.youtube.com/watch?v=SV-xPS5-GxE
The National Debt The debt is the sum of all the deficits the government incurs, it is the total amount the government owes The national debt is currently ________________ Go to http://www.usdebtclock.org/
The National Debt The debt is the sum of all the deficits the government incurs The total amount the government owes The national debt is currently… Go to http://www.usdebtclock.org/
Impact of the National Debt Pay more ____________ on the Debt Higher spending can create ______________ Greater government _________ on the economy John Stossel video - https://www.youtube.com/watch?v=hW7rJbftQh4
Impact of the National Debt Interest on the Debt Inflationary Effect Greater government role in the economy More government borrowing means less money for private sector John Stossel video - https://www.youtube.com/watch?v=hW7rJbftQh4