America's fiscal constitution: its triumph and collapse

Description

Traces two centuries of political leadership to explain how the U.S. is being threatened by unprecedented debt levels, challenging common beliefs and highlighting past examples to argue in favor of leadership that embraces more responsible fiscal decision-making.;A new nation and Democratic party limit Federal debt : 1789-1853. Debt gives rise to a new nation and political party ; Jefferson's party defines the limits on debt ; A revived Democratic party pays off the debt -- The tradition sustains a growing nation and the Republican party : 1854-1900. Republicans embrace the tradition ; Borrowing and taxing to restore the Union ; Shrinking debt and drifting parties -- Progressive reformers embrace the tradition : 1901-1940. Reformers redefine the parties and government ; Financing a world war and paying down debt ; Debt during the Great Depression -- Containing the burden of World War II debt while increasing commitments : 1941-1976. War and taxes ; Containing debt while funding defense, pensions, and highways ; Medical needs, war, and recession -- The erosion, revival, and collapse of the tradition : 1977-2013. Structural deficit : pressures for tax cuts ; The tradition survives, though its pillars erode ; Traditionalists battle back ; The tradition collapses ; The Great Recession and budget stalemate -- Restoring the tradition. Reviving traditional budget practices ; Balancing the national security budget ; Paying for medical care ; Growth, taxes, and the Federal Reserve ; Reforming the political parties -- Appendices. A, US Treasury debt, 1790-2013 ; B, Unmonetized debt compared to national income and tax revenues, 1790-2012 ; C, Federal funds revenues, outlays, and surplus/deficit, 1789-2013 ; D, Foreign holdings of US debt, 1976-2011 ; E, US state and local debt, 1970-2009 ; F, Trade balances, 1790-2010 ; G, Corporate income tax : effective rates and share of national income, 1960-2009 ; H, Personal income tax : effective rates and share of national income, 1950-2010.