Transcript Did You Know? - Effingham County Schools

Government Spending
Deficits, Surpluses, and The
National Debt
Tomorrow’s Test
GDP (included/not included)
Real GDP & Economic Growth
Aggregate Supply & Aggregate Demand
(shifters)
Inflation (CPI, GDP deflator, calculating)
Unemployment (Calculate,Types)
Fed Structure/Roles
Monetary Policy
Study
The GDP Notes Handout
The Unemployment Types Notes Handout
Written Notes
Fed/Monetary Policy Notes Handout
Government Spending in
Perspective
Total gov’t spending was $6.5
trillion in 2009—about
$21,000 per person.
Government Spending in
Perspective
Total Federal and Combined State and Local Spending per Household, 1965–2007
Federal Government Spending
Categories
The biggest categories of federal spending:
th-Income Security
4
st
1 -National Defense
th-Health
5
nd
2 -Social Security
th-Net Interest
6
rd
3 -Medicare
What the
Federal
Government
Spends it’s
Money On
I. From the Deficit to the Debt
Deficit- expenditures > revenues in 1 yr.
Surplus- revenues > expenditures in 1 yr.
Federal debt- total owed
National Debt
Dice Game
1 roll is for government expenditures.
1 roll is for government revenue (taxes).
5 rounds (10 rolls)
Keep a tally:
– Each year’s deficit/surplus
– Total debt accumulated
Deficits/Surpluses
Debt Clock
U.S. Treasury Web Site
I. From the Deficit to the Debt Continued
When there’s a deficit, gov’t can sell bonds
(borrow)
II. Impact of the National Debt
2 ways it hurts economy:
– More debt = more interest.
– When gov’t borrows, interest rates rise.
II. Impact of the National Debt Continued
1/2 of debt is owed to the Fed.
II. Impact of the National Debt Continued
China, Japan, UK = hold most debt.
II. Impact of the National Debt
Social Security & Medicare spending is
growing.
II. Impact of the National Debt -
1. What is the term for when
revenues exceed expenditures
over the course of 1 year?
A) Deficit
B) Surplus
C) Debt
2. The U.S. government owes over
$11 trillion total. What is the term
for this?
A) the deficit
B) the surplus
C) the debt
Healthcare
The Issues
I. The Issues
Health care spending is rising faster than
inflation and economic growth.
The leading cause of personal
bankruptcy in U.S. is medical debt.
Health care in U.S. costs more per
person than any other nation on earth.
U.S. is the only wealthy, industrialized
nation that doesn’t have universal
coverage.
I. The Issues
In ‘07 15% of U.S. population (45.7
million people) did not have health care.
We spend more for our health care but
get less.
http://www.cnn.com/interactive/2009/08/he
alth/map.health.global/index.html
II. The Causes
Diet
– Obesity
– Late-Onset Diabetes
– Estimated 70% of increases in costs are
lifestyle related.
Prescription drugs cost more in U.S. than
in other countries.
– Gov’t Health Care = Monopsony
– Intellectual Property Right Enforcement
– Gov’ts Sometimes Use Price Controls
II. The Causes
Inadequate competition among insurers.
Inadequate info for
– users of health care.
– providers of health care.
Doctors paid for services provided rather
than by salary.
Medical malpractice Lawsuits.
III. Possible Remedies
2 schools of thought: costs vs. coverage
Create a national market.
Tax credits or subsidies.
Coverage mandates.
Create a Public Sector Competitor.
Take A Stand!
Consider the ideas to “fix” healthcare.
To what extent should the government get
involved?
Look at the signs around the classroom.
In a moment, go to the sign that best
represents your opinion.
Talk with the other people in your group,
and be ready to share why you believe as
you do.
Patient Protection and
Affordable Care Act
Insurance Mandate-You must get insurance.
Tax credit for poor
Prohibits Pre-Existing Condition Exclusions
No cancellation of coverage except for fraud.
Limits out-of-pocket expenses to $5k individual/yr
Public option
National market for health insurance
Taxes
– employers who don’t offer coverage
– individuals w/ incomes > $350k
IV. Who’s For It?
AARP, AMA, ANA, AFL-CIO, AFT
The President and many democrats.
V. Who’s Against It?
People worried about costs/ deficit
spending.
People worried about becoming less
Capitalist/ more Socialist.
The health insurance industry.
Most Republicans.
Quote of the Day
“My medical plan was to not get shot.”
Boots Riley
Listen
When Social Security was created in the
1930s, the life expectancy was 60.
It was 75 in the 80s, and is 78 today.
II. Impact of The National Debt
- Continued
I. Government Spending in
Perspective - Continued
Total gov’t spending was $6.5
trillion in 2009—about
$21,000 per person.
I. Government Spending in
Perspective
Total Federal and Combined State and Local Spending per Household, 1965–2007
III. Impact of Government Spending
I. From the Deficit to the Debt
Guarantee access for pre-existing
Lawsuits
Can’t cancel unless fraud
Small businesses form health care groups
National market