Notebook # 28- Economics 10-4 Deficits, Surpluses, And The National Debt pages

Deficits, Surpluses, and The National Debt ESSENTIAL QUESTION: What is the impact of the national debt and government deficits on the U.S. economy? What is the global impact of U.S. national debt and government deficits? Pages

Deficits, Surpluses, and The National Debt Pages GPS STANDARDS : SSEMA1- Explain the method by which economic activity is measured. f.) Explain the difference between the national debt and government deficits.

l l Deficits, Surpluses, and The National Debt Pages deficit spending- spending in excess of revenues collected (spending more money than you are collecting in taxes) federal debt- the total amount borrowed from investors to finance the government’s deficit spending (the spending of money the government does not have)

l l Deficits, Surpluses, and The National Debt Pages The accounting system of the Bureau of the Public Debt, a part of the Department of the Treasury, announces the “public debt outstanding” at about 11:30 a.m. daily. The system takes into consideration 50 different reporting sources to determine how much the federal government owes on any particular day.

l l Deficits, Surpluses, and The National Debt Pages There are many websites dedicated to the national debt to make the general public aware of how BIG the debt is:

l l Deficits, Surpluses, and The National Debt Pages Throughout United States history, the federal government has practiced deficit spending, or spending more than the revenues it collected. In 1998 the federal budget had its first surplus in 29 years.

l l Deficits, Surpluses, and The National Debt Pages The surplus did not last long, however, as the recession of 2001, caused by September 11th, reduced tax receipts while politicians simultaneously opted for tax cuts rather than debt reduction. By 2002, federal deficits were back.

l l Deficits, Surpluses, and The National Debt Pages Historically, the largest federal deficits happened during World War II. The budget, however, had a surplus by 1947, which lasted until the 1980s, when the Reagan administration increased defense spending and cut taxes.

l l Deficits, Surpluses, and The National Debt Pages The federal debt is the total amount the government has borrowed from investors to finance its deficit spending over its long history. The total federal debt had grown to $6.74 trillion by As you saw on the debt clock earlier, the total federal debt has now grown to $11.9 trillion in 2009.

l l Deficits, Surpluses, and The National Debt Pages

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