1. Chapter 22 Section 1 & 2
Mr. Holmes
December 8, 2012

2. Budgeting The fiscal year for the government runs from 10/1 to 9/30.
Spending falls into two categories:
Mandatory: What they have to spend
Discretionary: Things that the federal government can choose.

3. It’s all about the money…
Revenue
Expenditures
Taxes
3 categories:
Proportional
Progressive
Regressive
Biggest spending items
Defense
Social Security
Income Security
Medicare
Medicaid
Interest on Debt

4. State Budget Revenue Expenditures Federal Government Sales Tax
Public Welfare
Education

5. Local Government Revenue Expenditure Property Tax State Government
Fire
Police
Schools
Roads
Sewers
Trash

6. Does this show a surplus or deficit?

7. What is wrong with
federal debt?

8. When there is a recession:
Government does two things:
Increase spending
Cut taxes

9. 2009 Stimulus
In 2009, President Obama asked Congress to pass a stimulus to help Americans during the Depression.
Americans today still argue if it was a good use of money or a waste of money.