Contemporary Debates

How to Use This Book

1. America'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?

2. Thinking 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?

3. Congress 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"?

4. Taxing, 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?

5. Government 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?

6. The Financial Crisis and Austerity Measures
Q25: How did the 2007â"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?

7. The 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?

8. Reforms 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