I. Introduction -- II. So what went wrong in the 1980s? -- III. Analyzing the economic effects of the S&L losses -- IV. Estimating the economic effects of the S&L breakdown -- V. Incorporating deposit insurance in measures of the budget -- Appendix A. McKibbin-Sachs global model -- Appendix B. Estimation of capital losses.

I. Introduction -- II. So what went wrong in the 1980s? -- III. Analyzing the economic effects of the S&L losses -- IV. Estimating the economic effects of the S&L breakdown -- V. Incorporating deposit insurance in measures of the budget -- Appendix A. McKibbin-Sachs global model -- Appendix B. Estimation of capital losses.

This text introduces students to the interrelationship of politics and economics in American public policymaking: how economic concerns have been legislated into law since Franklin Roosevelt's time and how politics (e.g., Washington gridlock) affects the economy and the making of public policy. Students learn how to measure various indicators of economic performance, how the U.S. economy works (domestically and with international linkages), and how and why policymakers act to stabilise an economy in an economic downturn. Additionally, many social insurance programs (Social Security, Medicare, Medicaid) are explained and the current fiscal issues concerning current/future costs are treated in some detail. The book concludes with a full chapter case study on the Obama administration's response to the Great Recession and its dealings with Congress; the implementation of the Affordable Care Act is also discussed.

What are the appropriate public policies for America as it approaches the coming century? The signs are all around. A market-liberal revolution is sweeping the planet, from Eastern Europe to Latin America to Asia, where governments are selling off state enterprises, cutting taxes, deregulating business, and showing new respect for property rights and freedom of choice. The two dozen essays in this book discuss how to bring the market-liberal revolution to the United States and explain how for-profit companies will revolutionize education, how deregulation of medical care can lower prices, how America can save $150 billion a year in military spending, how property rights can fix the environment, how deregulation and free trade produce prosperity, how competition produces health and safety, how America must deal with nuclear proliferation, how we can balance the budget without raising taxes, how the poverty and welfare trap can be ended, and how the inner cities can become livable again. This blueprint for reform is the alternative to both the status quo and the calls for even more government interference in our personal and economic activities. Any viable agenda for the 21st century must recognize the truth that all central planning, whether for education, medical care, or the environment, will only end in failure. Market Liberalism presents a new vision for American government, a positive, optimistic vision rooted in the principles of the Founders and suited to the challenges of the 21st century. It offers the promise of a free, prosperous, and pluralistic society for America and the world.