1. By 2012 the federal government spent close to $1 trillion ($1,000,000,000,000 - that's really a lot) more than its income (a $1 trillion deficit). It's total debt has increased upwards of $18 trillion. What positive effects do you think this borrowed money could have on the US's economy (be very specific)?
2. What negative effects do you think this borrowed money could have on the US's economy (be very specific)?
3. Will all of this debt have an effect upon you as a student? as a 55 year old worker?
4. It appears that the US's net exports have been negative for decades. Explain the potential positive effects this might have upon the US consumer.
5. Explain the potential negative effects this could have upon US producers.
6. US consumers often purchase goods manufactured in foreign countries. Write 2 reasons why you think the US consumer would purchase a foreign made product over a US made product.
7. Assume the government decides to pass a law which forbids the purchase of any foreign goods. All goods purchased must be made in the US by US operated companies. Explain what you think would be the reaction from 1) US consumers 2) US businesses and 3) the US labor force.
8. Would you rather open your new business before a major incident (say 9/11) or after a major incident? Explain your reasoning.