1. Bellringer How much is the current federal debt? Give your best guess.

2. U.S. Debt Clock National Debt by President

3.  Budget – estimate of anticipated income and expenses for a certain period of time  Federal, state and local levels  Budget Process 1. Office of Management & Budget (executive branch) creates a budget proposal 2. 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. Page 162

4.  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 Page 163

5.  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

6.  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 http://data.bls.gov/cgi-bin/cpicalc.pl Page

7.  Cost of goods and services  Ability to get credit and the interest rates (Loans)  Interest you will earn (Savings Accounts)  Job stability  Wages

8.  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)