This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Discretionary 1 10/1 • Agreed-Congress o National Defense and Social programs are only discretionary o Annual spending exceeds annual revenue – Deficit (pp. 34) o Annual revenue exceeds annual spending – Surplus o For those born in 1989, the National debt was $2.6 trillion, in your lifetime you have seen the Debt increase 3 ¼ times. If the Debt increases 3 ¼ times in the next 18 years it will be $27.6 trillion. * Per person $92,000 • Deficits/National Debt matters for 3 reasons 1. Debt leads to spending more on interest… an escalating cost. 2. Puts a country at mercy to other countries. 3. Not coming to grips with spending what you can’t afford. • Start focusing more on the world economy to create a surplus • Common Causes of Financial Trouble o Excessive use of credit 39% o Lower income or unemployment 25% o Poor money management 15% o Divorce/separation 8% o Other 14% 2...
View Full Document
This note was uploaded on 04/19/2011 for the course BUS 100 taught by Professor Mo during the Fall '08 term at Indiana.
- Fall '08
- Monetary Policy