episode 10 discussion

1.	Warren is very concerned about taxes and spending. Both spending and taxation are federal budgetary items. The government finances its spending through taxation and through borrowing. When the government spends more than it takes in, we say the budget is in deficit, and when the government spends less than it takes in, we say the budget is in surplus. Go to the U.S. Bureau of the Budget Web site and review the Economic Report of the President 2000. At the end of this document there are many tables of economic statistics. Go to table B-76. Look at the figures for the total surplus. Do you see any interesting trends? What appears to be the trend in the 1990s? What happens during war time? Why? What are the projections for the future?

2.	Despite Warren's concerns, Maria and Liz are very optimistic. Maria is hopeful that the government's policies will increase the supply of high-tech workers. Is this possible or likely? Go to the U.S. Bureau of the Budget Web site and read Chapter 3: Technology and the American Economy of the Economic Report of the President 2000. It contains a discussion of the government role in research and development. The report argues that government spending on research and development is a good way of stimulating supply of new products. What is the basic argument?

3.	There are a few people at CanGo who are concerned about the federal government and its handling of the economy. Is the federal government a big part of our economy? Does it play a big part in our economic lives? Go to the U.S. Bureau of the Budget Web site and read A Citizen's Guide to the Federal Budget. It is a relatively short document. We hear a lot of talk about the colossus that is the U.S. government. When you compare the levels of government spending and taxation in this country to the levels in other capitalist countries, what do you find? Does this surprise you?

4.	People often confuse deficits with debts. A deficit represents the amount that you borrow currently. Debt represents accumulated past borrowings. If you have been borrowing for a long time, then your debt could be much larger than your deficit. Go to the Web page for the Bureau of the Public Debt. The Bureau is a part of the United States Department of the Treasury. What is the current value of the U.S. federal debt? Has it been increasing or decreasing? The U.S. must pay interest on its debt. How much interest does it have to pay each year?

page 19 of 19 | go to page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19