1. Government Spending

5. 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)

6. 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)

7. 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

8. 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

9. Categories of State Spending

10. Categories of State Spending
Public Welfare – welfare payments, housing subsidies
Higher Education – colleges, universities, tech schools
Highways
State Pensions
State Law Enforcement

11. Local Spending

12. Local Spending Public Education – (K-12) Public Safety Utilities
Police, Sheriff, Fire Departments
Utilities
Hospitals
Highways
Local Amenities – parks, “civic beautification”

13. Deficit and Debt

14. 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

15. 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

16. 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

17. 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

18. Impact of the National Debt
Pay more ____________ on the Debt
Higher spending can create ______________
Greater government _________ on the economy
John Stossel video -

19. 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 -