(See related pages)
After reading this chapter you should be able to
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Understand how economists look at the federal budget deficits and surpluses and the national debt. |
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See that deficits frequently are caused by wars. |
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See that economists are interested less in raw numbers than in more sophisticated measures of the burdens that deficits and debt place on us. |
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Recognize that the U.S. national debt-to-GDP ratio is relatively moderate when compared to U.S. history and to other countries. |
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See that the federal government owns much of the debt. |
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Understand why economists are divided on the issue of a balanced-budget amendment to the U.S. Constitution. |
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See how the debt picture has changed substantially and why deficit projections are so often wrong. |