America's National Debt

Thomas Arndt is Adjunct Professor in the department of political science at The College of New Jersey (TCNJ), USA.

How to Use This Book

1America's National Debt throughout History

Q1:Has the U.S. government always accumulated national debt?

Q2:What has caused the national debt to rise so significantly in recent decades?

Q3:Should Americans be concerned about the size of the national debt?

Q4:What are the differences between deficits and debt?

Q5:Why has the debt issue faded from news headlines and public attention in recent years?

2Thinking Critically about Debt

Q6:How does the government actually borrow money and who does it owe?

Q7:Is there anything good about deficit spending?

Q8:How much of the U.S. government's spending is truly wasteful?

Q9:Can the United States still consider itself the richest country in the world?

3Congress and the Power of the Purse

Q10:Who has the power to decide how the public's tax dollars are spent?

Q11:What are the biggest line items in the budget that Congress spends its money on?

Q12:What is the debt ceiling and how often does it need to be raised?

Q13:What are the roles of congressional committees, such as Ways and Means, Finance, Budget, and Appropriations?

Q14:What are earmarks and how do they contribute to larger deficits?

Q15:What is the significance of a "cbo score"?

4Taxing, Spending, and Debt as Public Policy Issues

Q16:Why is there such a sharp clash of ideology when it comes to financial issues managed by Congress?

Q17:How do politicians argue the so-called guns versus butter debate?

Q18:How do tax increases and tax cuts affect the national debt?

Q19:How much of the government's spending is secret and kept hidden from the public?

Q20:Is Social Security going bankrupt and will it be viable for future generations?

5Government Shutdowns

Q21:What is the process for reaching a budget deal between Congress and the president?

Q22:How frequently have government shutdowns occurred?

Q23:What happens to government services when there is a shutdown?

Q24:How does partisan polarization over the debt issue affect the chances of a government shutdown?

6The Financial Crisis and Austerity Measures

Q25:How did the 2007–08 financial crisis impact the federal government's approach to budgeting and managing the debt?

Q26:Did the tarp bailout succeed in preventing an economic collapse?

Q27:How did the tea party movement capitalize on the perception that the government spends too much money?

Q28:What is sequestration and how did it impact the national debt issue?

7The Implications of Debt

Q29:How much interest does the United States have to pay on the national debt?

Q30:How does the national debt affect the economy, including things such as interest rates, inflation, and the stock market?

Q31:Does a ballooning national debt compromise U.S. national security interests, especially if large sums are owed to China?

Q32:Can lenders simply call in the debts owed to them by the U.S. government at a moment's notice?

8Reforms and the Landscape Ahead

Q33:Will the national debt ever get paid off by future generations?

Q34:What would be the result of the United States defaulting on its debt repayment obligations?

Q35:What is the leading justification for a proposed balanced budget amendment?

Q36:What other options for reducing the national debt have been considered?

Index