LCM is an abbreviation for

LECTURE 1 , January 19 Historical overview of the public sector ❖ Our public sector makes up ⅓ of the economy ❖ Public sector routinely spends more than they have ➢ 4.1% more in 2015 ❖ Year by year we accumulate more debt ➢ $18 trillion in 2015 (total) ➢ “This is way too high by any standard” ❖ Revenue has been generally stable since 1970s ➢ Expenditures have been increasing and went way up after the ‘07 market crash ❖ Debt has been increasingly relentlessly over the past 40 years ➢ Has increased more in the past 15 years than in the history of the US ❖ Government shutdown­ when the President and Congress can’t agree on how much to borrow (because then the debt ceiling is not raised and the Gov must