1. Debt The National Debt is the total amount of money we owe to countries and people we have borrowed from – How do we borrow? – Treasury Bonds

2. Deficit The Deficit is the difference between the revenues we take in and the money we spend – Social Security revenue comes in from the people who are currently working (like me) – Social Security expense goes out to the retirees who qualify for it – If we spend more than we take in, that is a deficit

3. Debt vs. Deficit What happens when you don’t have enough money to pay your bills? – You have to borrow, or you default – The USA borrows money by issuing debt – This is how the Deficit is related to the National Debt Do you think the USA will ever be able to pay back what it borrowed? Does it need to?

5. Your Task In Excel, enter the budget percentages for the categories listed – Put your name in the header Then change it the way you think it should be Defend why you changed the percentages the way you did for each Insert a pie chart and label it Format and print Worth 20 points

6. Our 2012 Budget