us_ch15_lesson2

=**Economic Issues**= America's debt has risen over the decades as you know from studying U.S. History. As we approach a debt of $20 trillion, the payments on the interest alone increase. America has become immune to out of control spending at all levels. For decades, the federal government and all 50 states continued to increase spending. When more money was needed, government officials either borrowed the money running a deficit or increased taxes. Even today there are calls to raise taxes even more. You also know from studying that increasing taxes and spending doesn't improve the economy but rather it locks people into more government control. In 2010, several states (including PA) elected governors and legislatures that would balance their budgets and get spending under control. Of course when you rein in spending and balance the budget something is going to get cut. Most Americans want spending cuts but not their own spending cuts...case in point...go ask your teachers how they feel about Governor Corbett!!!

In future elections you will see the "tax the rich" issue intensify. Be sure you stay educated on this issue and be able to discuss it. You'll hear "the rich need to pay their fair share." Probably over 90% of Americans including the rich would agree with this. However, some believe the rich are already paying their fair share while others do not. The richest paid 39.6% income tax. In addition, the U.S. had the highest tax on businesses in the world. There is much less incentive to have your business in America if you are a global corporation. Higher taxes on the businesses hurt small businesses who don't have ability to maneuver their money overseas as large corporations do. In December 2017 major tax reform was passed which lowered taxes for all income tax payers and for businesses. As a result the economy began growing again, which shows the history at work again.

Wasteful spending is something many Americans are unaware of. In addition, most Americans don't realize that if America's debt gets so high that our nation defaults, it will be catastrophic for 100% of Americans. Let's get educated on this issue!

**Are we a welfare nation?**
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**Is America in decline?**
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**Wanting Government Handouts**
Not part of your packet, but a good video to watch in terms of showing part of America wanting the handouts - whether necessary or not (there are various opinions) media type="custom" key="14688998"

**Graphs and Charts on the debt and deficit:**
U.S. Debt Clock: [|click here]

Federal Revenue and Spending by year: [|click here]





Deficit spending is certainly not something new. Both parties have controlled the presidency and both parties have controlled Congress over the years. The statistics show the Democrat Party is the bigger spenders, but Republicans certainly have areas they want to spend on as well. The major problem is that once you've (the government) given people a benefit...whether its Social Security, Medicare, Medicaid, welfare, unemployment, money for education, postal service, roads, funding for Planned Parenthood, funding for drug rehabs, funding for building infrastructure, the whole bureaucracy (FBI, CIA, NASA, EPA, FDA, FCC, SEC, FTC, EEOC, Passport Agency, all departments), or whatever....it's hard or impossible to change the amount or requirements to receive. If someone gives you free stuff you're going to like getting that free stuff. If you become use to getting that free stuff you're going to start to expect the free stuff and soon rely on the person giving you that free stuff. The Democrat Party largely is the party that stands for maintaining all of the funding to the areas (and numerous others not mentioned) and see tax increases especially on the wealthy as the way to do it. The Republican Party wants more self-reliance and the private sector to handle most of the other areas.

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