bell ringer this helps to understand the us debt: u.s. tax revenue: $2,170,000,000,000 fed budget:...
TRANSCRIPT
Bell Ringer• This helps to understand the US debt:
• U.S. tax revenue: $2,170,000,000,000• Fed budget: $3,820,000,000,000• Deficit: $ 1,650,000,000,000• National debt: $14,271,000,000,000• Recent budget cut: $38,500,000,000
• Let’s remove 8 zeros and pretend it’s a household budget:• Annual family income: $21,700• Money the family spent: $38,200• New debt on the credit card: $16,500• Outstanding balance on the credit card: $142,710• Total budget cuts: $385
• In your opinion, why are American politicians still avoiding tackling the U.S. debt? Think about how spending cuts (welfare for those in poverty & the elderly, roads/infrastructure, education, research, etc.) and tax hikes would affect our everyday lives.
• http://www.usdebtclock.org/
Please put your Budget Simulations
HW in the bin!
Today we will …
Objectives Agenda
• Review executive orders, impeachment & succession.
• Describe the steps in creating the US national budget.
• Explain the role of The Federal Reserve in monetary policymaking.
• Compare/contrast fiscal & monetary policy.
1. Presidential Odds & Ends2. Fiscal Policy - Creating US
National Budget slides/notes
3. Monetary Policy – The Fed video & questions
4. Closure - Fiscal & Monetary Policy FRQ
HW: • Foreign Policy RQs (1/30)• Topic Statement (’d 1/30)
Executive Orders• A rule or regulation issued
by the President that has the force of law.
• Congress acts in response to or in anticipation of executive orders (preempts and compromises)
Impeachment• The House can “impeach”
the President.• The Senate conducts a
trial & votes on impeachment.
• The Supreme Court Justice presides over the trial.
• Presidents:1. Andrew Johnson -
acquitted2. Bill Clinton - acquitted▫ Nixon resigned before
impeachment
Check for understanding
•Specifically explain how a president can be removed from office. Provide at least one historical example of this process being used.
Economic Policy
Fiscal Policy Monetary Policy
Goal: put more $ in people’s pocket Manage the economy by
controlling taxing & spending.
How can the Pres. influence?
How can the Congress influence?
Goal: regulate money supply to increase or decrease the nations level of business We want a productive
growing economy but it can’t grow too fast
Inflation!
Overall goal is to regulate & ensure the stability of the economy.
Inflation• When the value of money goes down. This means that it
costs more money to buy products. • The more money there is out there being spent, the less
the money is worth. The supply is high, thus the value is comparatively lower.
• What this also means is that people are spending, and this is good.
• Proper balance between a healthy amount of spending and money in circulation & an acceptable level of inflation.
• Economists have placed "healthy" inflation at 2 - 3%. This shows spending growth and expansion, any more and we begin to worry.
Fiscal Policy Actions▫Raising & lowering taxes▫Spending
1. Mandatory Spending – obligated by previously enacted laws
Entitlements (ex: Social Security, Medicare) Interest on the debt
2. Discretionary Spending – controlled thru regular budget process• Defense budget• Education• Environmental Protection Agency• Department of Veterans Affairs
Monetary PolicyFederal Reserve Video – 14 min.
https://www.youtube.com/watch?v=KN3kD4T3ltY&feature=related