■ Essential Question:–What are the major challenges

facing America in the 21st century?

■ Warm-Up Question:–What is the bigger problem facing

America: threats of terrorism OR the federal deficit? Explain

Barack Obama & the Election of 2008

http://www.youtube.com/watch?v=TR-sn2vzmFQ

The election of 2008 was a historic

moment in U.S. history as Barack

Obama became the first African American

elected president

http://www.youtube.com/watch?v=dNo8u95NCQU

But, the president faces serious foreign &

domestic challenges

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 2009

Government Revenue (FY2009)

Income CategoryTotal

(Billions)Percent

Individual Income Taxes 915 44%

Corporate Income Taxes 138 7%

Social Insurance

Taxes & Contributions891 42%

Other Taxes 161 7%

Total 2,105

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 2009

Government Spending (FY2009)Spending Category

Total (Billions)

Percent

Defense 663 19%

Education 78 2%

Interest on debt 191 6%

Foreign Aid 37 1%

Social Security 683 19%

Welfare & Income Security 534 15%

Health 764 22%

Other 526 15%

Environmental Protection 46 1%Total 3,522

The 2009 Deficit

Gov’t Outlays (Spending) — $3.5 trillion

Gov’t Revenue (Income) $2.1 trillion

Gov’t Deficit = $1.4 trillion

The federal deficit in 2009 was $1.4 trillion

As of 2010, the National Debt is $12.9 trillion

What is a trillion dollars?

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

Class Discussion:What are the consequences of an increasing federal deficit?

■ Essential Question:–What are the major challenges

facing America in the 21st century?

■ Warm-Up Question:–How does the federal government

borrow money?–How much money do you think

Americans, on average, have in their savings accounts?

I.O.U.S.A. Documentary

■ Watch the documentary “I.O.U.S.A.” –As you watch

the film, take notes & be ready to discuss your answers

http://www.youtube.com/watch?v=O_TjBNjc9Bo