End of Cold War and Modern Times #5 Obama and Financial vs. Foreign Challenges

Essential Question: What are the major challenges facing America in the 21st century? Warm-Up Question: What is the bigger problem facing America: threats of terrorism OR the federal deficit? Explain

Barack Obama & the Election of 2008 The election of 2008 was a historic moment in U.S. history as Barack Obama became the first African American elected president But, the president faces serious foreign & domestic challenges http://www.youtube.com/watch?v=TR-sn2vzmFQ http://www.youtube.com/watch?v=dNo8u95NCQU

Government Revenues vs. Outlays Where does the federal gov’t get its money & how does the gov’t spend it? The “Income Board” lists the four major ways in which the federal gov’t generates revenue to pay for programs Working with a partner, guess what percent each of the 4 categories makes up of the total gov’t revenue Also, take a guess as to how much total money the U.S. gov’t collected in 2009

Government Revenue (FY2009) Income Category Total (Billions) Percent Individual Income Taxes 915 44% Corporate Income Taxes 138 7% Social Insurance Taxes & Contributions 891 42% Other Taxes 161 Total 2,105

Government Revenues vs. Outlays Where does the federal gov’t get its money & how does the gov’t spend it? The “Spending Board” lists the nine major programs on which the federal gov’t spends money Working with a partner, guess what percent each of the 9 categories makes up of the total gov’t spending Also, take a guess as to how much total money the U.S. gov’t spent in 2009

Government Spending (FY2009) Spending Category Total (Billions) Percent Defense 663 19% Education 78 2% Interest on debt 191 6% Foreign Aid 37 1% Social Security 683 Welfare & Income Security 534 15% Health 764 22% Other 526 Environmental Protection 46 Total 3,522

The 2009 Deficit Gov’t Revenue (Income) $2.1 trillion Gov’t Outlays (Spending) — $3.5 trillion Gov’t Deficit = $1.4 trillion

The federal deficit in 2009 was $1.4 trillion

As of 2010, the National Debt is $12.9 trillion

What is a trillion dollars? A packet of one hundred $100 bills is less than 1/2″ thick and contains $10,000. Fits in your pocket easily and is more than enough for week or two of shamefully decadent fun.

Believe it or not, this next little pile is $1 million dollars (100 packets of $10,000). You could stuff that into a grocery bag and walk around with it.

While a measly $1 million looked a little unimpressive, $100 million is a little more respectable. It fits neatly on a standard pallet…

And $1 BILLION dollars… now we’re really getting somewhere…

Next we’ll look at one trillion dollars Next we’ll look at one trillion dollars. This is that number we’ve been hearing so much about. What is a trillion dollars? It’s a million million. It’s a thousand billion. It’s a one followed by 12 zeros.

Class Discussion: What are the consequences of an increasing federal deficit?

Essential Question: What are the major challenges facing America in the 21st century? Warm-Up Question: How does the federal government borrow money? How much money do you think Americans, on average, have in their savings accounts?

I.O.U.S.A. Documentary Watch the documentary “I.O.U.S.A.” As you watch the film, take notes & be ready to discuss your answers http://www.youtube.com/watch?v=O_TjBNjc9Bo