How much has the federal government planned on spending in 2014? $3.8 trillion!

Government Spending Federal, State, and Local Unit 6

Federal Government Expenses Largest expenditures in the federal budget (2014): 1.Social Security – $1,224,000,000,000 2.Medicare & Medicaid – $980,000,000,000 2.Defense (military) – $655,000,000,000

State Government Expenses Largest state government expense: 1.Local government aid – Money given to local governments by the state to pay for things like schools, roads, police, etc

Local Government Expenses Largest local government expense: 1.Schools

Impact of Government Spending Money distribution – The govt determines where its money goes (and who will receive it) – Incomes of businesses and communities can be affected by these choices Example: If the government decided to purchase diesel engines from Cummins for the newest army vehicles, how would this impact income for people in the Columbus area? – How would this impact Detroit where Ford engines are made? Tax/Debt burden – The more money the government spends, the more it either needs to collect in taxes, or borrow

Quick Review 1.What is the largest expense in the federal budget? 2.What is the largest expense in state budgets? 3.What is the largest expense for local governments? 4.How does government spending affect you and me? – Money distribution (did we receive any of that money?) and taxes Social Security Local government aid Education

Why should YOU care? The burden of government spending is placed squarely on the shoulders of YOU, the taxpayer Many of the programs and things the government spends money on helps YOU – Military protection – Social security (for when you retire) – Government created/reliant jobs – Education funding Wouldn’t it be nice if we all had our own laptops in school?