The Federal Budget

Does the federal government budget and spend your tax dollars wisely?

14.1 Introduction

On January 24,2012, the House chamber filled with representatives, senators, Supreme Court justices, cabinet heads, military leaders, and invited guests. They had gathered for the president’s annual message to Congress known as the State of the Union address. The name comes from the Constitution, which says the president “shall from time to time give to the Congress Information of the State of the Union, and recommend to their Consideration such Measures as he shall judge necessary and expedient.

Just after 9:00 P.M., the Sergeant at Arms of the House called out, “Mister Speaker, the President of the United States.” Barack Obama slowly made his way to the podium amid handshakes and applause. Once there, he was formally introduced to the assembled leaders and the nation by Speaker John Boehner.

In his address, Obama discussed the achievements of the U.S. military before launching into the major topic of the night: the American economy. He recalled that the Great Recession in 2008 “plunged our economy into a crisis that put millions out of work, saddled us with more debt, and left innocent hardworking Americans holding the bag.” Since then, Obama said that the economy has made great strides:

Next Section: 14.2 (Who Controls the Budget Process?)