1.) If the federal government were required by law to balance his budget, how would such a law impact our response to the current recession? See data to help inform your analysis.

AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCcDdEE AaBb( AaBbCCDdEE AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe Norma No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emph Emphasis Intense Emp.. Strong Quote Federal Budget Categories: In FY 2019, the federal government spent $4.4 trillion, which amounts to 21% of GDP. Only $3.5 trillion was financed by federal revenues and the remaining amount was financed by borrowing. What the $4.4 trillion was spent on (some numbers are approximations): MANDATORY SPENDING: 23% ($1 trillion) Social Security: 45 million receive retirement benefits, 10 million receive disability benefits. 25% ($1.1 trillion) Medicare, Medicaid, CHIP: $651 billion on Medicare (61 million beneficiaries) $400 billion on Medicaid and CHIP (82 million low-income seniors and children) $56 billion on ACA subsidies (9.6 million beneficiaries) 8% ($361 billion) Safety Net Programs: Such as food stamps, EITC, housing subsidies. It is estimated that these programs have kept 37 million people above the poverty line and that without these programs, our poverty rate would be around 24% instead of just below 13%. 8% ($375 billion) Interest payment on the National Debt DISCRETIONARY SPENDING: 16% ($700 billion) National Defense 8% benefits for veterans and federal retirees. 2% Transportation Infrastructure 2% Education 2% Science and Medical Research Includes scientific research, medical research, space programs, the EPA, Interior dept, National Parks service, Department of Energy 1% Non-security International including diplomatic efforts (State Department) and foreign aid. 4% All other government functions Including law enforcement (FBI, CIA, DHS), justice system, general government operations.AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCcDdE AaBb( AaBbCcDdEE AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe AaBbCcDdEe Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emph Emphasis Intense Emp. Strong Quote The data presented here has been retrieved from the following federal government sources: The OMB (Office of Management and Budget) The CBO (Congressional Budget Office) The Federal Reserve of St. Louis Table |* YEAR Federal Federal Budget Federal Debt Receipts as Outlays as % Surplus or as % of GDP % of GDP of GDP Deficit as % of GDP 2000 20% 17:7% +2.3% 54% 2008 17.1% 20.2% -3.1% 74% 2016 17.6% 20.8% - 3.2% 105% 2019 16.3% 21% -4.6% 107% (in 2020 this is now 136%) Table 2* YEAR Mandatory Defense Non-Defense Interest Expenditures Discretionary Discretionary Payments on as % of Expenditures Expenditures the Federal Budget as % of as % of Debt as % of Budget Budget Budget 1993 48% 21% 17% 14% 2018 61% 15% 15% 8% 2025 64% 15% 11% 10% (Projected) Some numbers have been rounded. Average Economic Growth rate for the US economy over the last ten years is just under 2.5%