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SPHERE Webinar

January 11, 2022

Making Sense of The Federal Budget, Debt and Deficits

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Making Sense of The Federal Budget, Debt & Deficits

Curriculum Outline

Lesson 1: Our National Debt

Activity: Myth Busters - The National Debt

Lesson 2: Where Does Our Money Go?

Activity: To the Penny!

Lesson 3: Is Government Spending Sustainable?

Activity: The Fiscal Ship

Lesson 4: Where are the Numbers?

Activity: Words and Deeds - Budgets vs Financial Reports

Lesson 4 Appendix: State & City Budget & Financial Reporting

Activity: The Fiscal Health of States

Lesson 5: Debts, Deficits, and Debasement: Using Public Choice Economics to Understand Public Debt

Activity: Public Choice in Action

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Lessons Available at www.fte.org

https://www.fte.org/teachers/teacher-resources/lesson-plans/making-sense-of-the-federal-budget-debt-deficits/

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Mythbusters: The National Debt

Making Sense of The Federal Budget, Debt & Deficits

Lesson 1 Activity

Lesson Available at www.fte.org

Kahoot Game: https://create.kahoot.it/share/myth-busters-the-national-debt/9cc6a97e-503c-4496-9559-974f8538a1f9

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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To the Penny

Making Sense of The Federal Budget, Debt & Deficits

Lesson 2 Activity

Lesson available at www.fte.org

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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To The Penny

Sort 100 pennies as you think they are allocated in the federal budget by stacking them in the appropriate boxes.

1 penny = 1% of budget

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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To The Penny

US Federal Budget Allocation 2019

1 penny = 1% of budget

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Debrief

How did your predictions compare to the actual?

What surprised you most?

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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To the Penny

Mandatory Spending: Determined by law (prior commitments of government). Cannot be changed as part of annual budget and appropriations process.

Discretionary Spending: Elected officials have the discretion to change this spending from year to year as part of the annual budget and appropriations process.

Shade in the pennies you think represent mandatory spending in each category.

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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To the Penny

Shaded pennies represent mandatory spending.

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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To the Penny

Shaded pennies represent mandatory spending.

Count out 78 pennies to represent the money you have (tax revenue).

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Debrief

How did your predictions of mandatory vs discretionary spending compare to the actual?

What surprised you most?

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Can You Fix It? The Fiscal Ship

Making Sense of The Federal Budget, Debt & Deficits

Lesson 3 Activity

Lesson Available at ww.fte.org

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Lesson 3 Activity

Can You Fix It? The Fiscal Ship

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Can You Fix It?

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Words & Deeds

Making Sense of The Federal Budget, Debt & Deficits

Lesson 4 Activity

Lesson Available Soon at www.fte.org

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Lesson 4 Activity

Comparing The Words & Deeds

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Lesson 4 Activity

Fiscal Health of States

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Public Choice in Action

Making Sense of The Federal Budget, Debt & Deficits

Lesson 5 Activity

Lesson Available Soon at ww.fte.org

Making Sense of the Federal Budget, Debt & Deficits © Foundation for Teaching Economics, 2021. Permission granted to copy for educational use.

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Scenario

You are an elected representative in Washington D.C. representing constituents from your home state.

You are also a member of the House Budget Committee, and you have have been tasked with finalizing a budget. The 12 policies on their Role Card are the ones on the table for discussion today.

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