Deficit [electronic resource] : Why Should I Care? /
Bussing-Burks, Marie.author.
At the turn of this century, the American national debt stood at just under $6 trillion and the deficit at a "mere" $86 billion. Today, the national debt has topped $14 trillion, and the yearly deficit for 2011 is projected at a whopping $1.4 trillion. According to the U.S. Treasury Department's Annual Report on the Public Debt, the debt is estimated to hit $19.6 trillion by 2015. The federal government has borrowed roughly 40 percent of its total budget for the last several years, a disturbing trend that could leave the U.S. in an economic crisis. Astronomical interest payments, a debt burden to your children and grandchildren, and an increased reliance on foreign creditors are just a few of the problems. Although the U.S. has experienced soaring unemployment, stagnant production, and a crippled housing market, foremost on economists' minds are rising deficits and ballooning debt. Others feel fears of the national debt are overblown or pale in comparison to today's economic problems. This clear, concise book will give you the need-to-know on the debt. You will learn: How to calculate deficits and the national debt The history of U.S debt and its recent unparalleled growth over the years How and why the government borrows money Methods and tactics for balancing the budget The economic arguments for, and against, accruing a debt The impact of the debt on interest rates and inflation The impact of the debt on the value of the dollar and U.S. economic power This book also answers key questions: Can the government go bankrupt? Why have there seemingly been no repurcussions of the large debt to date and is that likely to change? When the interest on the debt becomes higher than the revenue of the government, what happens? And many more practical insights into the government debt controversy. Business professionals, parents, retirees, and students are all talking about the debt. This quick read will provide an understanding of the ramifications of the rising debt and what the consequences may be.
Description based upon print version of record.
Title Page; Copyright Page; Dedication Page; Table of Contents; About the Author; About the Technical Reviewer; Acknowledgments; Introduction; CHAPTER 1 Crash Course on the National Debt; Government-Provided Goods and Services; Financial Management, Government Style; Taxing; Borrowing; Budgeting; Problem Area: Social Security; Problem Areas: Medicare and Medicaid; The Budget Equation: Receipts less Outlays; Deficits and Business Cycles; December 2007 Recession; CHAPTER 2 A Huge Credit Card; History of the Debt; Think Like an Economist; Liberty Bonds; War Bonds; Who Owns the Debt?; Public Debt
Government DebtMarketable vs. Nonmarketable Obligations; Marketable Securities; Treasury Bills; Treasury Notes and Bonds; Treasury Inflation-Protected Securities (TIPS); Nonmarketable Securities: Savings Bonds; Series EE Savings Bonds; Series I Savings Bonds; Foreign Investors; Interest Payments; Summary; CHAPTER 3 Deficit and Debt Projections; Fiscal and Monetary Policy; Macroeconomic Goals of Fiscal Policy; Tools of Fiscal Policy; Taxes; Government Spending; The Multiplier Effect; Discretionary Fiscal Policy; The Supply-Siders; Transfer Payments; Progressive Income Taxes
Criticism of Discretionary Fiscal PolicyTime Lags; Political Process; Human Behavior; Crowding Out; History of Fiscal Policies; Great Depression; World War II; Kennedy-Johnson Tax Cut; Economic Stimulus Act of 2008; American Recovery and Reinvestment Act of 2009; Debt-to-GDP Ratio; U.S. Record Debt; Summary; CHAPTER 4 Do Deficits and the Debt Matter?; Recent Deficit Issues; Repercussions of Large Deficits; Projected and Historical Trends of Debt; Widespread Concern; CHAPTER 5 Deficits Do Not Matter; Public Goods Are a Priority; Deficit Spending: A Useful Tool During a Crisis
Reasonable Deficit-to-GDP RatioRicardian Equivalence Suggests Deficits Don't Matter; It Isn't Necessary to Pay Down the Debt; Treasuries Are a Savings Vehicle; Treasuries Provide a Common Index; Treasuries Are Essential to Monetary Policy; CHAPTER 6 Deficits Do Matter; Foreign Share Expands; Potential Downgrading of U.S. Debt; Global Crisis Illustrates Dangers of High Debt; Exorbitant Interest; Growing Interest Payments; Opportunity Cost High; Crowding Out; Economic Panic; Limited Flexibility in a Crisis; Burden to Future Generations; Promoting Fiscal Irresponsibility; Summary
CHAPTER 7 Get a Handle on the National DebtThe Basic Formula to Curb Deficits; Balance the Budget; Eliminate Pork Projects; Debt Ceiling a Useful Tool; Historical Debt Limit; Debt Is Close to Ceiling; Limit Makes Us Mindful of the Deficit; Reform Entitlement Programs; Retirement, Health Care, and the Deficit; Challenges Facing Social Security; Conclusion; APPENDIX A Voice Your Opinion on the Debt; Make a Monetary Contribution; Become an Educated Taxpayer; Vote; Contact your Senator or Congressman; APPENDIX B Web Sites for Debt and Deficit Information; Government Agencies
www.publicdebt.treas.gov
Includes bibliographical references and index.
At the turn of this century, the American national debt stood at just under $6 trillion and the deficit at a "mere" $86 billion. Today, the national debt has topped $14 trillion, and the yearly deficit for 2011 is projected at a whopping $1.4 trillion. According to the U.S. Treasury Department's Annual Report on the Public Debt, the debt is estimated to hit $19.6 trillion by 2015. The federal government has borrowed roughly 40 percent of its total budget for the last several years, a disturbing trend that could leave the U.S. in an economic crisis. Astronomical interest payments, a debt burden to your children and grandchildren, and an increased reliance on foreign creditors are just a few of the problems. Although the U.S. has experienced soaring unemployment, stagnant production, and a crippled housing market, foremost on economists' minds are rising deficits and ballooning debt. Others feel fears of the national debt are overblown or pale in comparison to today's economic problems. This clear, concise book will give you the need-to-know on the debt. You will learn: How to calculate deficits and the national debt The history of U.S debt and its recent unparalleled growth over the years How and why the government borrows money Methods and tactics for balancing the budget The economic arguments for, and against, accruing a debt The impact of the debt on interest rates and inflation The impact of the debt on the value of the dollar and U.S. economic power This book also answers key questions: Can the government go bankrupt? Why have there seemingly been no repurcussions of the large debt to date and is that likely to change? When the interest on the debt becomes higher than the revenue of the government, what happens? And many more practical insights into the government debt controversy. Business professionals, parents, retirees, and students are all talking about the debt. This quick read will provide an understanding of the ramifications of the rising debt and what the consequences may be.
Business.
Management science.
Business and Management, general.