Money Matters
$
EXPLORING THE MONEY
MATTERS OF THE FEDERAL
GOVERNMENT
Where Federal Money Comes From
$
The money that the government runs
on is raised through taxes.
That’s right!
The money raised by the
government through taxes is
called revenue!
Where Federal Money Comes From
$
TOTAL: $2,381,000,000,000
Where Federal Money Goes
$
FEDERAL BUDGET: A plan for how the government brings
in and spends revenue
Defense
Social Security
Medicare & Medicaid
Other Mandatory
Other Discretionary
Interest
Federal Spending
$
National Defense
Social Security
Income Security
Medicare
These are just broad
categories!! Let’s break
them down…
Health
Net Interest
Veterans Benefits
Education & Employment
Transportation
International Affairs
Administration of Justice
Resources & Environment
Science & Technology
Government
Agriculture
Community & Regional Development
Energy
Two Possible Outcomes
$
The government
The government
OR spends LESS than it
spends MORE than
raises in taxes so
it raises in taxes so
that there is money
that it must borrow
left over!
money!
Deficit
Surplus
Two Possible Outcomes
$
This chart shows that there has
been a deficit almost every
year since 1980.
Revenue Short of Budget in Billions
Deficit:
more money
spent than
earned
Surplus:
less money
spent than
earned
500
400
300
200
100
0
-100
-200
-300
1980
1985
1990
1995
2000
2005