BellringerHow much is the current

federal debt? Give your best

guess.

Economy – Federal Debt

U.S. Debt Clock

National Debt by

President

Federal Budget Definitions Budget – estimate of anticipated income and

expenses for a certain period of time Federal, state and local levels

Budget Process1. Office of Management & Budget (executive

branch) creates a budget proposal2. President reviews and approves proposed budget

and submits it to Congress for debate\3. Must be approved by Senate and then the House

to become law.

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Federal Budget Definitions

Budget Deficit – more money is spent than is collected

Budget Surplus – more money is collected then is spent

Difference between state and federal gov’t

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Federal Budget Definitions

National Debt – the total amount of money that the federal government owes

Debt from 8 years under Pres. Bush – 4.9 Trillion

Debt from 4 years under Pres. Obama – 5 Trillion

Economic Extremes

Recession – a period of significant decline in the economy; usually lasts 6 months to a year

Depression – major economic slow down; more serious and longer lasting than a recession

Inflation – a general, prolonged rise in the prices of goods and services http://data.bls.gov/cgi-bin/cpicalc.pl

Page

Effects on Consumers

Cost of goods and services

Ability to get credit and the interest rates

(Loans)

Interest you will earn (Savings Accounts)

Job stability

Wages

Today’s Activity

Read the article “States Adding Drug Test as Hurdle for Welfare” and write a 3-4 sentence reflection

Using the Pork Barrel Spending packets document 5 different pork barrel items for 5 different agencies (packets)