Politics and the American Economy - Review

Contemporary Review, Sept, 2001

Politics and the American Economy. James J. Gosling. Longman. [pound]20.99 p.b. 175 pages. ISBN 0-321-07044-5. This study looks at the relationship between politics and economics in the U.S. in the 1980s and 1990s. After an introduction in which the author analyses the major aspects of America's political economy, he examines how fiscal and monetary policies are formulated, the relationship between the Federal Government's deficits and the national debt, the U.S.

as a trading nation, the complicated question of Federal Government regulation of the economy, the position of the poor in American life and, finally, the future for the American economy, especially those problems facing it. In 1998, for example, the U.S. current account deficit rose to over $233 thousand million while the pensions system still does not have sufficient funds to pay for future claims. At present government seems willing to let the Federal Reserve Bank control the economy and the people continue to believe that past actions to get rid of the Federal deficit, reduce debt, increase national saving, reform the welfare state and, lastly, to restrict government interference in the economy have kept the 'American miracle' going.