1. The Budget is all about Priorities…
“The way you spend your money determines your priorities…”
What is the opinion of this cartoonist?

2. The Politics of Taxing and Spending
Voters want
Prosperity
Lower taxes
Less debt
New/cont. programs
Objectives are
inconsistent
Add caption? P. 488 2

5. 2012 Budget Breakdown

6. Where the Money Comes From and Where it Goes!

7. What trends do you observe?

8. Annual Deficits turn into Long term DEBT

11. Top Income Tax Rates

12. Deficit vs. Surplus

15. Debating Welfare Programs
Majoritarian Politics/Programs
Examples – Social Security, Medicare
No means test
Biggest issue – cost
Client Politics/Programs
Examples – Medicaid, Food Stamps
Means tested
Biggest issue – legitimacy
Delivery
Service Strategy – A policy providing education and job training to help lift people out of poverty
Income Strategy - A policy giving money to help lift people out of poverty

16. Health Care Spending in the U.S.

17. Social Security and Medicare Cost as a % of GDP

18. Public Opinion on Social Security Reform