Should We Worry About the National Debt? Economics Chapter 14

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Should We Worry About the
National Debt?
Economics
Chapter 14
What does a Trillion look like?
1,000,000,000,000
https://www.youtube.com/watch?v=Tym9AhMNcP0
What is the National Debt?
• http://www.usdebtclock.org/
What is the National Debt?
• The national debt represents the sum of annual
budget deficit minus annual surpluses, incurred
since the Revolutionary War.
What Caused the National Debt?
1. Paying for wars
2. Increased government spending during
recessions
3. Tax decreases not accompanied by
decrease in spending
4. Unforeseen events
Where does the government get the
money when it wants to spend more
than it takes in?
• The government borrows money by selling
securities (bonds)
• The government also has the power to print
money – the US rarely does this
What are budget deficits
and surpluses?
Activity
• Read your handout
• Answer questions on back
• Note: Handouts 1 and 2 represent DIFFERENT
opinion/perspective
• Discuss!
Video
• http://video.pbs.org/video/1099844054/
• “Ten Trillion and Counting”