Deficit [electronic resource] : Why Should I Care? / by Marie Bussing-Burks.
- 2nd ed.
- Berkeley, CA : Apress : Imprint: Apress, 2012.
1 online resource (142 p.)
- Local subjects:
- Business and Management, general.
- Electronic books.
- System Details:
- text file
- 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 $15 trillion, and the yearly deficit for 2012 is projected at a whopping $1.2 trillion. This new, second edition of Deficits: Why Should I Care? updates all the statistics, charts, and forecasts, while adding a new chapter on how global economies now, for better or worse, affect the U.S. debt and the annual budget deficit. It also includes a new appendix detailing how the U.S. political parties view the debt issue. 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 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 many 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 The economic arguments for, and against, accruing a debt Could we become like Greece if we don't cut our deficit? 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 concerned about the debt. This quick read will provide an understanding of the ramifications of the rising debt and what the consequences may be.
- Title Page; Copyright Page; Table of Contents; About the Author; About the Technical Reviewer; Acknowledgments; Introduction; CHAPTER 1 Crash Courseon 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 Debt
Marketable vs. Nonmarketable ObligationsMarketable Securities; Treasury Bills; Treasury Notes and Bonds; Nonmarketable Securities: Savings Bonds; Series EE Savings Bonds; Series EE Savings Bonds; Series I Savings Bonds; Foreign Investors; Interest Payments; Summary; CHAPTER 3 Primer on the Current Global Economy; Our Interconnected World; The Impact of Weakening Economies; Potential Global Recession; Trade Downturns; World Financial Markets; Unresolved Banking Crises; Declining Income and Jobs; Economic Growth Is the Key; CHAPTER 4 Deficit and Debt Projections; Fiscal and Monetary Policy
Macroeconomic Goals of Fiscal PolicyTools of Fiscal Policy; Taxes; Government Spending; The Multiplier Effect; Discretionary Fiscal Policy; The Supply Siders; Transfer Payments; Progressive Income Taxes; Criticism of Discretionary Fiscal Policy; Time 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 5 Do Deficits and the Debt Matter?; Recent Deficit Issues
Changing DemographicsRepercussions of Large Deficits; Projected and Historical Trends of Debt; Widespread Concern; CHAPTER 6 Deficits Do Not Matter; Public Goods Are a Priority; Deficit Spending: A Useful Tool During a Crisis; Reasonable Deficit-to-GDP Ratio; Ricardian 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 7 Deficits Do Matter; Foreign Share Expands; Potential Downgrading of U.S. Debt
Global Crisis Illustrates Dangers of High DebtExorbitant 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 8 Get a Handleon the National Debt; The Basic Formula to Curb Deficits; Balance the Budget; Eliminate Pork Projects; Empower States; Debt Ceiling a Useful Tool; Historical Debt Limit; Debt Ceiling Crisis; Limit Makes Us Mindful of the Deficit; Reform Entitlement Programs; Retirement, Health Care, and the Deficit
Challenges Facing Social Security
- Description based upon print version of record.
Includes bibliographical references and index.
- Publisher Number:
- 10.1007/978-1-4302-4840-8 doi
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