SITE AND PURPOSE:The Economic Report of the President is a source of considerable data about the economy of the US, both current and historical.Looking at these figures as a percentage of GDP is a good way to put very big numbers into perspective.

SITE ADDRESS, INSTRUCTIONS AND ASSIGNMENT:

First ... Define the Federal Deficit. Define the Debt

Navigation at this time is to go tohttps://www.govinfo.gov/app/collection/erpSelect the year 2019.Scroll down to Appendices, and then scroll way down to find Appendix B, section on Government Finance.It has several items.Questions:

1. Look at B-46. In what year was the Deficit (see column for Surplus or Deficit; deficits are denoted by a negative sign) the largest percentage of GDP?What was happening to the US and the world during that time period?The figures in this table are already in "percent of GDP" - you know that because that is what the table is called.
2. Also in B-46, look at the next column, Gross Federal Debt as a percentage of GDP. In which year was it the highest?What was happening in the US and in the world in that period of time (not necessarily exactly the same year ... maybe in a prior year)?In what year was thedebtthe lowest percentage of GDP?
3. In what years did we have a Federal budget surplus? How did that surplus come about?
4. In how many years has the deficit been a larger percentage of GDP than is forecast for the current year?In how many years has the deficit been a smaller percentage of GDP?
5. Who "owns" the debt - in other words, who has lent money to the US Government? Look in Appendix B-52.The column headings give you the categories of "owners" - like The Fed, Banks, etc.
6. What you have done in the preceding questions is analyze the data. Now, offer some conclusions.Should we be alarmed right now about thedeficit?Why or why not?Should we be alarmed right now about thedebt?Why or why not?Or, perhaps a better question, what focus should our concern take?