In addition to the new material (about 6,000 words), all statistics will be updated and more charts and graphs will be added to provide insight.

Chapter 1. Crash Course on the National Debt

This chapter delves into the role of the government in the U.S. economy. The government must provide certain essential goods and services for its taxpayers. In turn, the government collects taxes to pay for these goods and services. But when the government spends more than it takes in, a deficit occurs, and the government must borrow to pay for its overspending. This chapter takes a look at the budget process and the different types of budgets: balanced, deficit, and surplus.

Chapter 2. A Huge Credit Card

This chapter introduces the history of the debt and the issuing agency, the Bureau of the Public Debt. It examines details of the agency's financing instruments, Treasury securities, and savings bonds. Other main topics include the ownership of the debt, United States versus foreign, and interest payments, which hamper the government's ability to balance the budget.

**NEW **

Chapter 3. Primer on the Current Global Economy

Our Interconnected World

--Policies and Events in One Country Affect Other Countries

--The Impact of Weakening Economies on the U.S.

--Trade Downturns

--Declining Income and Jobs

Potential Global Recession

China: Long-term Slowing?

European Debt Crisis

--Spreading Financial Disease Across the Globe for Years to Come?

World's Financial Markets

--Unresolved Banking Crises

--Periodic Stock Market Selloffs

Economic Growth Key to Revenue Growth

--Revenue Key to Managing Deficit

--Earnings Stagnant

Impact on the U.S. Budget and Deficit

Chapter 4. Deficit and Debt Projections

This chapter describes how the government's spending and tax policies influence output. The government has historically used fiscal policies to alter the macro economy, with some successes and some failures. We will look at an overview of recent fiscal policies, including the economic stimulus package designed to combat the December 2007 downturn, and impacts on the deficit and debt. This chapter introduces the rising debt compared with gross domestic product (GDP), considers the productive capacity debate, and provides projections on the debt trend.

Chapter 5. Do Deficits and the Debt Matter?

This chapter sets the stage for the debt debate. It was back in 2002, at a meeting of President Bush's economic advisors, that Vice President Dick Cheney said, "Deficits don't matter," a viewpoint many politicians and economists have held for years. The deficit at that time was just $158 billion. Now some in Congress and many interest groups say deficits matter a great deal, and we must eliminate deficits and pay down the debt. others say no, we must spend in the face of economic hard times.

NEW ADDITIONS FOR THE SECOND EDITION:

Changing Demographics

--Historical Overview of Social Security

--Historical Overview of Medicare

--Historical Overview of Medicaid

Chapter 6. Deficits Do Not Matter

This chapter focuses on the viewpoint that deficit spending is not a concern to the health of the U.S. economy. In fact, sometimes running a deficit contributes beneficial effects for the economy. Government spending supports the economy through building strong economic growth and more jobs. The federal government's deficit financing provides many essential services to society, such as national defense,
About the Author: Marie Bussing-Burks is an assistant professor of economics at the College of Business of the University of Southern Indiana, where she teaches economics, focusing on microeconomics, macroeconomics, history of economic thought, and money and banking. She holds a master's degree in business administration and a doctorate of arts in economics. Bussing-Burks is the author of The Young Zillionaire's Guide to Taxation and Government Spending (2000), Profit from the Evening News: Using Leading Economic Indicators to Make Smart Money Decisions (2001), Influential Economists (2003), Money for Minors: A Student s Guide to Economics (2008), and Starbucks: Corporations that Changed the World (2009). She has more than 30 newspaper, magazine and journal articles to her credit. Bussing-Burks serves on the boards of the USI Foundation, Evansville Commerce Bank, and St. Mary's Health System.