PPT-Deficits, Surpluses, and the National Debt

From Deficits to Debt Because of deficit spending the national debt has increased dramatically Typically deficit spending is a result of the government forced to spend more than it collects because of unexpected developments causing a drop in revenues or a rise in expenditures. K Jha Memorial Lecture I first came to India only about eight years ago and have been coming to India once each year for the past five years Even in that short period of time I have seen significant improvements in the Indian economy and now hear ab Philip Arestis and Malcolm Sawyer. University of Cambridge and University of Leeds. Introduction. The well-known . relationship. G- . T = S - I - NX . = S – I + FA. G: government expenditure; T tax revenue; S private savings; I private investment; NX net . 13. McGraw-Hill/Irwin. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. Fiscal. . Policy. The use of the taxing and spending powers of government to regulate aggregate expenditure, and thereby to stabilize the economy. Main Idea:. Deficit spending. . has helped create a national debt.. C10S4: Deficits, Surpluses, and the National Debt. Key Terms:. Deficit spending. Federal debt. Balanced budget. Crowding-out effect. Lecture 8. Deficits. , Surpluses, & the Public Debt. In this chapter you will learn. What a budget deficit and a budget surplus are, and their connection to the public debt. The . misconceptions about budget deficits and the national debt. Countries where the current account is broadly in balance…. Countries which run persistent current account surpluses…. Countries which run persistent current account deficits…. Causes of surpluses and deficits on the current account. What does that kind of money look like?. $100:. We'll start with a hundred dollar bill. Currently the largest U.S. denomination in general circulation. Most everyone has seen them, slightly fewer have owned them. Guaranteed to make friends wherever they go. . Dimensions of Fiscal Policy. Deficits and debt. Speed of adjustment and overall debt burden. The . overall size of . government. General versus targeted expenditures. Redistribution. Deficits. Why might a benevolent dictator run deficits?. Figure 15.1 U.S. National Debt as a Percentage of GDP, 1939–2020. Source. : Federal Reserve Bank of St. Louis. FRED Economic Database.. Figure 15.2 Domestic and Foreign Holdings of U.S. Debt (billions of dollars), 1970–2020. Deficits, Surpluses, . and the National Debt . Deficits, Surpluses, . and the National Debt . National debt. : . the sum . of the indebtedness of the federal government in the form of interest-earning bonds. It reflects loans to the U.S. Treasury. . Medicaid:. --Health care for the poor. Social Security:. --pension money for those who retire. --unemployment insurance; disability. Growing National Debt. Should we be worried?. Federal . Deficit. Economic . Fluctuations:. The Past 100 Years. Economic . Fluctuations:. the . Historical Record. Historically, the United States has experienced substantial swings in real output.. Before the Second World War, year-to-year changes in real GDP of 5% to 10% were experienced on several occasions. . 2009 GGFOA Annual Conference. John G. Hulsey, CGFM. Jackson County, GA. Learning Objectives. Identify Symptoms & Causes of Fiscal Stress. Diagnosis of your Government’s Fiscal/Budget Situation. John Key. National Debt: Crisis or Just a Concern. $33.2T. In 2023 we will have deficit spending . of $1.52T. The Three Largest Expenditures for 2023. Healthcare 24%. Social Security 21%. Defense 13%.