Economic Policy and the Economic Policy and the BudgetBudget

POLS 21: The American Political SystemPOLS 21: The American Political System

The government deficit is the difference between The government deficit is the difference between the amount of money the government spends the amount of money the government spends and the amount it has the nerve to collect.and the amount it has the nerve to collect.

——Sam EwingSam Ewing

http://www.thedailyshow.com/watch/mon-february-25-2013/sequester-2013---prelude-to-the-return-of-the-barter-system

Sequester 2013 – Prelude to the Return of the Barter System

In the face of the budget sequester and subsequent economic apocalypse, Samantha Bee checks items off her bucket list.

Where the Money Comes Where the Money Comes From…From…

The money that The money that the federal the federal government government uses to pay its uses to pay its bills—its bills—its revenues—revenues—comes mostly comes mostly from taxes:from taxes:

And Where it Goes…And Where it Goes…

Mandatory spending

Discretionary spending

X

Federal Budget DeficitsFederal Budget Deficits

$2.38 trillion Projected receipts

$3.55 trillion Projected outlays___________________________________________________________________

- $1.71 trillion Deficit in 2010

FY2011FY2011

Budget deficit = $1.267 trillion

The Federal Debt: Common The Federal Debt: Common QuestionsQuestions

What is the difference between the deficit What is the difference between the deficit and the federal debt?and the federal debt?

What is the current debt?What is the current debt?

The outstanding public debt as of April 24, 2014

$ 17,533,319,544,467.88

Since the estimated population of the United States is 318,087,524. Each citizen’s share of the debt amounts to $55,121.10!

Family Budgeting vs. Family Budgeting vs. National BudgetingNational Budgeting

Does this comparison make sense?

Source: The Citizen’s Guide to the Federal Budget

Balancing the BudgetBalancing the Budget

In February 2011, The Harris Poll asked a random sample of American adults in how they felt about persistent budget deficits, and what they might do to fix the problem:

“Below is a list of different areas of federal government spending. For each, please indicate if you would favor a major cut in spending, a minor cut in spending, no cut at all, or would you increase spending in this area?”

% favor cuts in

spending

Expenditures in FY 2011 (in billions)

% of total

budget in FY 2011

Foreign economic aid

75 44.1 1.2

Foreign military aid

69 10.1 0.3

Space programs 54 17.1 0.5

Federal welfare spending

51 103.5 2.6

Farm subsidies 42 20.2 0.5

Defense spending 41 749.7 18.2

Health care 24 497.3 for Medicare357.7 for Medicaid

24.2

Social Security payments

11 780.8 20.1

What is the Solution?What is the Solution?

Deficits don’t matterDeficits don’t matter

Cut spendingCut spending

Increase taxesIncrease taxes

http://www.thedailyshow.com/watch/mon-march-4-2013/sequest-out

Sequest Out

Democrats and Republicans prove unable to avoid their self-designed mutual ball punch.