US Government Finances and Spending

Garrett Archer, a data analyst, explains the US government's financial situation, highlighting the significant gap between revenue and spending, leading to a large deficit. In 2023, the government collected $4.4 trillion but spent $6.2 trillion, resulting in a $1.8 trillion deficit. The video breaks down revenue sources, with income taxes being the largest, and discusses mandatory and discretionary spending, emphasizing the defense budget. The growing interest on national debt, exacerbated by the pandemic, is a major concern, as it now exceeds a trillion dollars annually.

What is the US government sometimes humorously referred to as?

• A corporation with a military

• A charity with a military

• An insurance company with a military

• A bank with a military

How much tax revenue did the US government collect in fiscal year 2023?

• $6.2 trillion

• $3.2 trillion

• $4.4 trillion

• $5.6 trillion

What is the largest source of revenue for the US government?

• Corporate taxes

• Social Security withholdings

• Income taxes

• Tariffs

How much has the federal government collected from Social Security withholdings and Medicare taxes?

• $700 billion

• $600 billion

• $800 billion

• $500 billion

What is the largest discretionary spending item for the US government?

• Infrastructure

• Defense

• Healthcare

• Education

How much has been spent on defense so far this year?

• $500 billion

• $400 billion

• $300 billion

• $200 billion

What keeps economists up at night regarding US government finances?

• Interest on the national debt

• Education funding

• Rising healthcare costs

• Infrastructure decay

When did interest payments on the US debt surpass $100 billion?

• 1990

• 2000

• 1980

• 1970

What event significantly increased government spending and interest rates?

• The 2020 pandemic

• The 2012 fiscal cliff

• The 2008 financial crisis

• The 2016 elections

How much does the US now pay in interest payments?

• Over $1 trillion

• $500 billion

• $900 billion

• $700 billion