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

Barack Obama & the Election of 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

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 91544% Corporate Income Taxes 1387% Social Insurance Taxes & Contributions 89142% Other Taxes 1617% Total2,105

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 Defense66319% Education782% Interest on debt1916% Foreign Aid371% Social Security68319% Welfare & Income Security53415% Health76422% Other52615% Environmental Protection461% Total3,522

The 2009 Deficit Gov’t Outlays (Spending) — $3.5 trillion Gov’t Revenue (Income) $2.1 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$12.9 trillion

What is a trillion dollars? $10,000 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. 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 21 st 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

Crash Course USH 47