Government Revenues vs Outlays Where does the federal

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 2010

Government Revenue (FY 2010) Income Category Total Percent (Billions) Individual Income Taxes 899 41. 6% Corporate Income Taxes 191 8. 8% Social Insurance Taxes & Contributions 865 40% Other Taxes 207 9. 6% Total 2. 162 trillion

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 2010

Government Spending (FY 2010) Defense Education Interest on debt Foreign Aid Social Security Welfare & Income Security Health Total (Billions) 696 125 197 45 707 624 835 Other 180 5% Environmental Protection Total 47 3. 456 trillion 1% Spending Category Percent 20% 4% 6% 1% 21% 18% 24%

The 2010 Deficit Gov’t Revenue (Income) $2. 162 trillion Gov’t Outlays (Spending) — $3. 456 trillion Gov’t Deficit = $1. 294 trillion

The federal deficit in 2010 was $1. 294 trillion

As of 2011, the National Debt is $14. 38 trillion http: //www. usdebtclock. org/

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…

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

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. It’s a thousand billion. It’s a one followed by 12 zeros.

Currently, the largest problem in Europe is the debt crisis A growing number of European nations are unable to pay their debts Since 2010, Greece, Italy, Ireland, Spain, & Portugal received bailouts from European gov'ts