Government Revenues vs. Outlays ■Where does the federal gov’t get its

money & how does the gov’t spend it?–The “Income Board” lists the four major

ways in which the federal gov’t generates revenue to pay for programs

–Working with a partner, guess what percent each of the 4 categories makes up of the total gov’t revenue

–Also, take a guess as to how much total money the U.S. gov’t collected in 2010

Government Revenue (FY2010)

Income CategoryTotal

(Billions)Percent

Individual Income Taxes 899 41.6%

Corporate Income Taxes 191 8.8%

Social Insurance Taxes & Contributions

865 40%

Other Taxes 207 9.6%

Total 2.162 trillion

Government Revenues vs. Outlays ■Where does the federal gov’t get its

money & how does the gov’t spend it?–The “Spending Board” lists the nine

major programs on which the federal gov’t spends money

–Working with a partner, guess what percent each of the 9 categories makes up of the total gov’t spending

–Also, take a guess as to how much total money the U.S. gov’t spent in 2010

Government Spending (FY2010)Spending Category Total

(Billions) Percent

Defense 696 20%

Education 125 4%

Interest on debt 197 6%

Foreign Aid 45 1%

Social Security 707 21%

Welfare & Income Security 624 18%

Health 835 24%

Other 180 5%

Environmental Protection 47 1%Total 3.456 trillion

The 2010 Deficit

Gov’t Outlays (Spending) — $3.456 trillion

Gov’t Revenue (Income) $2.162 trillion

Gov’t Deficit = $1.294 trillion

The federal deficit in 2010 was $1.294 trillion

As of 2011, the National Debt is $14.38 trillion

http://www.usdebtclock.org/

What is a trillion dollars?

A packet of one hundred $100 bills is less than 1/2″ thick and contains $10,000. Fits in your

pocket easily and is more than enough for week or two of shamefully decadent fun.

Believe it or not, this next little pile is $1 million dollars (100 packets of $10,000). You could stuff that into a grocery bag and walk around with it.

While a measly $1 million looked a little unimpressive, $100 million is a little more respectable. It fits

neatly on a standard pallet…

And $1 BILLION dollars… now we’re really getting somewhere…

Next we’ll look at one trillion dollars. This is that number we’ve been hearing so much

about. What is a trillion dollars? It’s a million million. It’s a thousand billion.

It’s a one followed by 12 zeros.

Currently, the largest problem in

Europe is the debt crisis

A growing number of European nations are

unable to pay their debtsSince 2010, Greece, Italy,

Ireland, Spain, & Portugal received

bailouts from European gov'ts