NOTE: If you are short on time, watch the video and complete this See, Think, Wonder activity: What did you notice? What did the story make you think about? What would you want to learn more about?

SUMMARY

The growing size of the U.S. debt, and the concerns over how much more it will increase, is very much on the minds of investors, markets and lawmakers. The developments were tied in part to Moody’s announcement that it was downgrading the U.S. credit rating over concerns about large annual deficits, debt and rising interest costs.

View the transcript of the story. News alternative: Check out recent segments from the News Hour, and choose the story you’re most interested in watching. You can make a Google doc copy of discussion questions that work for any of the stories here.

Key terms

deficit — the amount the federal government spends above what it raises through things like taxes

debt — the total amount of money that the U.S. government has borrowed to make up annual deficits

tariff — a tax on imported or exported goods

WARM-UP QUESTIONS

1. What is Moody's and what action did it take?
2. Who is David Wessel, and what is his background?
3. Why did Moody's downgrade the U.S. government's credit rating?
4. Where might investors go if the U.S. dollar is no longer a safe investment, according to Wessel?
5. How does federal debt and credit rating affect what the everyday economy for people in the U.S.?

FOCUS QUESTIONS

What do you think is the most important action that the U.S. government can take to improve the economy right now?

Media literacy: Are there any economic terms or ideas in this segment that you don't know much about? How could you find out more?

WHAT STUDENTS CAN DO

The segment in this lesson describes the ways government debt can increase borrowing costs, which increases costs for people looking to buy things like houses or cars. But what else is impacting prices? Watch the following story on the state of tariffs and their impact on costs.

After watching this story, return to the focus question of the lesson. What action do you think the federal government could take that would most improve the economy? What action could the government take to make prices lower for most things? Do you think improving the economy and lowering prices are the same thing?

You can also complete this Daily News Lesson on the story.

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