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Quiz 3: U.S. Government Budgets, Deficits, & Debt Notes ECO 140 – Macroeconomics (Fall 2018) MCC – R. Kaulfuss Budget Deficits & Debt The National Debt

Budget Deficits & Debt · Web viewDemographics (baby boomers, longer life) Rising health care costs. SS benefits indexed to wages > inflation. SS Solutions. Reduce benefits or extend

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Page 1: Budget Deficits & Debt · Web viewDemographics (baby boomers, longer life) Rising health care costs. SS benefits indexed to wages > inflation. SS Solutions. Reduce benefits or extend

Quiz 3: U.S. Government Budgets, Deficits, & Debt NotesECO 140 – Macroeconomics (Fall 2018) MCC – R. Kaulfuss

Budget Deficits & Debt

The National Debt

Page 2: Budget Deficits & Debt · Web viewDemographics (baby boomers, longer life) Rising health care costs. SS benefits indexed to wages > inflation. SS Solutions. Reduce benefits or extend

Page 2

Key: clockwise from top rightDomestic Private: U.S. individuals, businesses, & institutionsOther Government: Social Security, Medicare, & other trust funds

Defense Spending Entitlement Programs

Social Security (FICA)1. Supplimental Retirement Income2. Disability & Family survivor support

Medicare (SECA) - elderly1. Hospital2. Doctor & Outpatient3. Prescription Drugs (not shown)

Medicaid- poor

Social Security & Medicare Crisis: Causes Demographics (baby boomers, longer life) Rising health care costs SS benefits indexed to wages > inflation

SS Solutions Reduce benefits or extend retirement age Increase taxes, extend withholding limit Privatization

Demographics

Page 3: Budget Deficits & Debt · Web viewDemographics (baby boomers, longer life) Rising health care costs. SS benefits indexed to wages > inflation. SS Solutions. Reduce benefits or extend

Page 3

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