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The Government

VIEWS: 12 PAGES: 12

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									The U.S. Government
   The 2 Sides of Government
What is a Budget?
    The Government Budget
Government Revenue   Government Spending

    Taxes              All Gov’t Expenses
               Deficit vs. Debt
• Deficit: how much more Government spends than it receives in
  tax revenue over 1- year

• Debt: total amount Government owes (has borrowed)
    2009 Budget Summary
• Total Spending:                              3.90 Trillion dollars

• Total Revenue                                2.20 Trillion dollars

• Total Deficit:                                1.7 Trillion*

• Total Debt:                                  12.5 Trillion dollars
       *2009 numbers was a very extreme budget year due to the current financial crisis.
       The actual budget deficit was approximately 1.7 trillion due to greatly
       Increased government spending on various “bailout” programs such as TARP….
       Government Revenues (2008)
•   Income Taxes      48%
•   Corporate Taxes   14%
•   Social Security   36%
•   Other              2%
             Government Spending
•   Social Security     22.0%
•   Medicare            11.0%    41% of Budget
•   Medicaid            8.0%
•   Interest on Debt    8.0%
•   Defense Spending    16.0%
•   Homeland Security   1.0%
•   Education           2.0%
•   Other               28.0
•   Total               100.0%
   US Demographics

• America’s population is aging

• By 2040 1 in 4 Americans will be over 65

• This FACT ensures that entitlement spending will increase
  a rapidly growing rate
           Entitlement Spending
• Includes- Social Security, Medicare & Medicaid

• Largest part of Government budget
   – Consumes approximately 41% of budget!


• Projected to over 60% by 2040!
                   Growth of Entitlements
      1964                            .             1984                             .           2004*


                                                                  27%                                   20%
33%                                            30%                                          33%
                    46%
                                                                                                         21%
7%                                           13%                    21%                     7%
       14%                                                                                        19%
                                                       9%


         Defense                                   Social Security                           Medicare & Medicaid
         Net interest                              All other spending

*Current services estimate.
Source: Budget of the United States Government, FY 2005, Office of Management and Budget.
Social Security

         spending         Problems increase as the
                          Babyboomers Retire!




                    Medicare


                      spending
           Wake-Up Call
• 60 Minutes Video

								
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