Download GOVERNMENT AT A GLANCE Plan The Three Branches of the

Plan
GOVERNMENT AT A
GLANCE
4The Structure of the U. S. government
4Constitutional foundations of taxation and
debt
4Government Budget, the Size of a
Government
4Simulation of a “free market”
The Three Branches of the
Federal Government
T Legislative: Congress
FHouse of Representatives “...was to be the
grand depository of the democratic principles
of the government.” (Madison)
FSenate “...is to consist in its proceeding with
more coolness, with more system, and with
more wisdom, than the popular branch.” (M)
T Executive: The President
T Judicial: Supreme Court
Raising Revenue by Federal
Government
4TAXES
– indirect. Commodity taxes should be uniform
throughout the United States (Art.1, Sec.8)
– direct
• head tax should be uniform (Art. 1, Sec. 9)
• personal income tax (the 16th Amendment, 1913)
4DEBT Government is empowered to
“..borrow money on the credit of the United
States.” (Art.1, Sec.8).
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Federal Budget
4Purchases of goods (e.g., spaceships,
missiles) and services (e.g., road
construction)
4Transfers (e.g., food stamps, farmer
subsidies)
4Interest Payments
Controllable and
Uncontrollable Spending
4Controllable (discretionary) spending
requires a separate an appropriation bill
(e.g., defense spending, water acts, etc.)
4Uncontrollable spending is related to
previous commitment made by the
government (e.g., interest payments on the
debt)
4“Relatively uncontrollable” spending e.g.,
entitlement programs: Medicare, SS
Unified Budget
4Budget of the United States Government is
published annually by the Office of
Management and Budget (OMB). It
includes cash outlays, receipts, borrowing.
– general federal fund
– federal trust fund includes SS, Medicare,
unemployment insurance
The Size of a Government
4To compare changes in the size of the
government across time have to adjust for
– inflation
– population size
4To compare across countries
– the size is calculated as spending as a
percentage of GDP
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The Market Game
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