Saranna Thornton - Bucking the Deficit: Economic Policymaking in America (Dilemmas in American Politics)

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Bucking the Deficit

Dilemmas in American Politics

Series Editor L. Sandy Maisel,Colby College

Dilemmas in American Politics offers teachers and students a series of quality books on timely topics and key institutions in American government. Each text will examine a real world dilemma and will be structured to cover the historical, theoretical, policy relevant, and future dimensions of its subject.

EDITORIAL BOARD

Jeffrey M. Berry
Tufts University

John F. Bibby
University of Wisconsin-Milwaukee

David W. Brady
Stanford University

David T. Canon
University of Wisconsin-Madison

Susan Carroll
Eagleton Institute, Rutgers University

Rodolfo O. de la Garza
University of Texas-Austin

Lawrence C. Dodd
University of Florida

George C. Edwards
Texas A&M University

Diana Evans
Trinity College

Linda L. Fowler
Dartmouth College

Paul S. Herrnson
University of Maryland-College Park

Charles O. Jones
University of Wisconsin-Madison

Ruth S. Jones
Arizona State University

Elaine Ciulla Kamarck
Office of the Vice President of the United States

Theodore J. Lowi
Cornell University

Thomas E. Mann
Brookings Institution

Paula D. McClain
University of Virginia

Michael L. Mezey
DePaul University

Gwendolyn Mink
University of California-Santa Cruz

Karen OConnor
American University

Samuel C. Patterson
Ohio State University

Nelson W. Polsby
University of California-Berkeley

Ronald B. Rapoport
The College of William and Mary

Craig A. Rimmerman
Hobart and William Smith Colleges

Larry S ab ato
University of Virginia

David Shribman
The Boston Globe

Walter J. Stone
University of Colorado-Boulder

Margaret Weir
Brookings Institution

James Q. Wilson
University of California-Los Angeles

BOOKS IN THIS SERIES

Bucking the Deficit: Economic Policymaking in America,
G. Calvin Mackenzie and Saranna Thornton

Can We All Get Along? Racial and Ethnic Minorities in American Politics,
Paula D. McClain and Joseph Stewart Jr.

Remote and Controlled: Media Politics in a Cynical Age,
Matthew Robert Kerbel

FORTHCOMING TITLES

Welfare Policy in American Politics,
Anne Marie Cammisa

The Dilemma of Congressional Reform,
David T. Canon and Kenneth R. Mayer

Immigration and Immigrants in the Contemporary United States,
Rodolfo O. de la Garza and Louis DeSipio

How a Parliamentary System Would Change American Politics,
Paul C. Manuel and Anne Marie Cammisa

No Neutral Ground: Abortion Politics in an Age of Absolutes,
Karen O Connor

Payment Due: A Nation in Debt, A Generation in Trouble,
Timothy J. Penny and Steven E. Schier

Participation, Democracy, and the New Citizenship in Contemporary American Politics,
Craig A. Rimmerman

The Angry American: How Voter Rage Is Changing the Nation,
Susan J. Tolchin

Onward Christian Soldiers? The Religious Right
in American Politics, Clyde Wilcox

Bucking the Deficit

Economic Policymaking in America

G. Calvin Mackenzie & Saranna Thornton

Colby College

Dilemmas in American Politics

First published 1996 by Westview Press

Published 2018 by Routledge

711 Third Avenue, New York, NY 10017, USA

2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

Routledge is an imprint of the Taylor & Francis Group, an informa business

Copyright 1996 Taylor & Francis

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Notice:

Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

Library of Congress Cataloging-in-Publication Data

Mackenzie, G. Calvin.

Bucking the deficit : economic policymaking in America / G. Calvin Mackenzie & Saranna Thornton.

p.cm. (Dilemmas in American politics)

Includes bibliographical references and index.

ISBN 0-8133-2060-7 (hardcover). ISBN 0-8133-2061-5 (pbk.).

1. United Stateseconomic policy.2. Budget deficitsUnited StatesHistory20th century.3. Finance, PublicUnited States History20th century.I. Thornton, Saranna.II. Title. III. Series.

HC106.M231996

338.973dc20

95-41949

CIP

ISBN 13: 978-0-8133-2061-8 (pbk)

TO MIKE
My loving husband, who makes every word possible
S.T.

FOR JOHN M. MACKENZIE
Brother of Stars Brother
G.C.M.

Contents

Glossary

Tables

Figures

Boxes

Cartoons

EVERYWHERE THESE DAYS the talk is of money. Candidates promise more jobs, lower taxes, less government spending, and a smaller federal deficit. Political leaders wrangle endlessly over budgets. Even issues such as crime, health care, welfare reform, and foreign policy quickly evolve into money matters: How much should we spend, how much can we afford?

The simple reality is that no one can begin to understand contemporary politics without first learning about the relationship between government and the American economy. Although Americas economy remains one of the freest in the world, the twentieth century has changed it significantly. The federal government now spends more than 20 percent of the money that circulates through the economy each year. The government regulates nearly every industry and many business practices. American banks are privately owned, but the government dictates many of their practices. American citizens drive on roads built with government funds, talk on telephones regulated by government agencies, send their mail through the governments post office, and pay sizable chunks of their earnings in government taxes. The modern economy and the modern polity grow ever more entangled.

In this book, we offer students of American politics an introduction to the American political economy. This is a broad and complex subject, and we have not covered every aspect of it here. But the chapters that follow will help to acquaint readers with the principal concepts, the most prominent theories, the primary processes, and the language of American economic policy.

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