DEBT

• US Deficit FY2009: $1.2 trillion = 8% of GDP• US Debt = $10 trillion• US GDP = $13.84 trillion

Deficit

• If Expenditures > Revenues you have DEFICIT• Expenditures – Revenue = Deficit• Money in - Money out = Deficit• $700 - $800 = - $100

• Your Deficit is $100

Surplus

• If Revenues > Expenditures you have SURPLUS• Revenue – Expenditure = Surplus• Money in - Money out = Surplus• $800 - $700 = $100

• Your surplus is $100

GDP?

• GDP is the GROSS DOMESTIC PRODUCT• GDP is the total output of all economic activity in a

nation including goods and services Health care expenses+Durable goods (microwaves, hair dryers, cars)+Mining activities+Food (PIZZA)+Lawyers fees+All other economic outputGDP

Debt?

• Debt is the total of all deficits – surpluses•

US Debt Clock

I.O.U.S.A.