1. 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

2. 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

3. 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

5. 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

6. 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

8. 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

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

10. The federal deficit in 2009 was $1.4 trillion

11. As of 2010, the National Debt is $12.9 trillion

12. 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.

13. 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.

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

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

16. 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.

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

18. 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?

19. 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