Lesson 08 Assignment Packet Part 1: "Ten Trillion and Counting" 1. According to the film, what is a budget deficit? The government, like a household, has expenses, and then they have income. And when those expenses exceed the income each year, they run a deficit. If you have a deficit this year and then a deficit next year, those deficits start to add up, and that’s what we call the debt. So the debt is the sum total of all the deficits we’ve accumulated since the revolution. 2. According to the film, what is total national debt? Over $11 Trillion 3. What are some reasons why the budget deficit and non-budgeted spending have been adding more than $500 billion to the national debt in recent years? Wars, the 2009 economic crash, financially broken system since 1982 4. Name three countries that loan money to the U.S. government. What instruments do they receive to guarantee their loans? China, Japan, and Europe (Saudi-Arabians). The instrument used to guarantee the loans is the Full faith and credit of the United States. 5. On several occasions, a balanced budget amendment has been proposed as law but not passed by Congress. What would be the advantages and disadvantages of having such a law?
- Fall '08
- Deficit, United States public debt