Federal Budget

Question 1

What is the difference between discretionary and mandatory spending?

Answer 1

discretionary is spending that can be approved or denied annually, mandatory is enforced by existing laws

Question 2

What is the difference between deficit and debt?

Answer 2

Deficit: spending more money than the government takes in revenue.
Debt: accumulation of all deficits combined over the years.

Question 3

What is the size of the current federal debt?

Answer 3

$35-36 trillion

Question 4

What is the size of the last few federal deficits?

Answer 4

1.83 Trillion

Question 5

What are the top three mandatory programs?

Answer 5

Social Security, National Defense, and Medicare.

Question 6

Is mandatory spending growing or shrinking? What percentage of the Federal budget is mandatory spending?

Answer 6

It’s growing and currently sits at 61-72%

Question 7

What percentage of the Federal Budget is Defense spending?

Answer 7

13%

Question 8

Is defense spending growing as part of the GDP?

Answer 8

No. It’s decreasing

Question 9

What country has the largest economy in the world?

Answer 9

U.S.A. (RAA EAGLE CAWW)

Question 10

What are the basic policy options when facing the growing debt?

Answer 10

Increasing Revenue (taxes), reducing spending