American Politics Today - Essentials (3rd Ed)

438 CHAPTER 14|ECONOMIC AND SOCIAL POLICY

Note: Totals in Figure 14.2A exclude the Social Security Trust Fund and refl ect total public debt, includ-

ing intragovernmental holdings.

Source: Data on budget defi cits from the Congressional Budget Offi ce, Historical Budget Data, http://www.cbo.gov/

publication/42911. Data on federal debt from the U.S. Department of the Treasury, TreasuryDirect, http://www.

treasurydirect.gov/govt/reports/pd/histdebt/histdebt.htm (accessed 11/4/12).

FEDERAL DEBT

FIGURE » 14.3B

Trillions

19651970197519801985199019951998200120042007

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

$11

$12

$13

$14

$15

$16

$17

2008200920102012

FEDERAL BUDGET DEFICITS AND SURPLUSES

The federal defi cit is the amount by which the government’s spending exceeds its

revenue in a given year; the federal debt is the accumulation of these annual defi cits.

Why do the federal defi cits and debt matter? Does the answer depend on the state of

the economy?

FIGURE » 14.3A

–$700

–$800

–$900

–$1,000

–$1,100

–$1,200

–$1,300

–$1,400

–$1,500

–$1,600

–$600

–$500

Billions

–$400

–$300

–$200

–$100

0

$100

19651970197519801985199019951996199719981999200020012002200320042005200620072008200920102012