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Essential Question : What is the current state of American deficit spending? . Government Revenues vs. Outlays . Where does the federal gov’t get its money & how does the gov’t spend it?
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Essential Question: • What is the current state of American deficit spending?
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 2012
#3 $242 billion9.9% #1 $1,132 billion46.2% #2 $845 billion34.5% #4 $229 billion9.4%
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 2012
#3 $792.4 billion22.4% #7 $103.3 billion2.9% #6 $220.4 billion6.2% #2 $811.7 billion22.9% #4 $419.0 billion11.8% #8 $57.2 billion1.6% #1 $818.5 billion23.1% #9 $43 billion1.2% #5 $272.5 billion7.7%
The 2012 Deficit Gov’t Revenue (Income) $2.448 trillion Gov’t Outlays (Spending) — $3.538 trillion Gov’t Deficit = $1.09 trillion
The 2012 Deficit Gov’t Revenue (Income) $2.448 trillion Gov’t Outlays (Spending) $3.538 trillion Gov’t Deficit = $1.09 trillion
As of 2013, the National Debt is $16.8 trillion http://www.usdebtclock.org/ How much is $16.8 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…
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.
Watch the documentary “I.O.U.S.A.” • As you watch the film, answer the questions provided • Be ready to discuss your answers after the video Ch 2 Savings 13.30 Ch 3 Trade 17.05 Ch 4 Leader 22.00
Class Discussion:What are the consequences of an increasing federal deficit?
Personal Finance: Saving and Investing Scenario Alice is a 25-year-old who starts investing $5,000 a year in a mutual fund that earns 8% per year. Alice is only able to invest for 10 years. Alice adds nothing to her fund next 30 years except the 8% interest her money gains. She cashes out her fund when she turns 65. Bob doesn’t start investing for a decade. Finally, when he turns 35 years old, he feels he has a good job and invests $5,000 a year every year for the next 30 years. Bob’s fund is identical to Alice’s and earns 8% per year. He cashes out his fund when he turns 65. Who has more money at 65 years old?
