The Public Debt of the United States: An Historical Perspective, 1775-1990.

• Author: Frazer, William

Stabile and Jeffrey's book is broad ranging and, as a consequence, has too many purposes for its 243 pages. They say |p, xi~:

This book presents a comprehensive history of the public debt over the course of our history as a nation, to the present day. It describes how the debt was accumulated during wars and recessions, and what impact macroeconomic policy has had on its growth. It also details how the debt itself had an impact on the economy, particularly with respect to the banking system.

Next |p. 6~:

The main purpose here ... is to examine closely those cases where the government chose borrowing to pay for its purchases, and to consider the burden the government put on itself in terms of debt management and administration.

Then |p. 8~:

The primary purpose is to describe the historical events that took place within the U.S. government to bring about the evolution of the functions of managing and administering the public debt.

And, referring to chapter 1, SC say |p. xii~ it "presents an overview of the economic theory of public finance for the reader who may be unfamiliar with what economists have to say."

However, adequate treatment of the tasks suggested would result in a product as extensive as a combination of the Friedman/Schwartz Monetary History of the United States, 1867-1960 |1963~ and parts of Monetary Trends in the United States and the United Kingdom |1982~. Not quite living up to the subject broadly viewed, SC get entangled in inadequate and possibly unnecessary treatments of the theory and facts--particularly as they bear on the term structure of interest rates |pp. 97-101~ and money and banking (and, as a consequence, problems with respect to Friedman vs others). The SC, theoretic/facts orientation is Keynesian |pp. 6-7, 94, 111-12, 214-15~.

The SC-books's contribution lies in the history of the debt, its administration, the times when it grew, the revenue methods concerning its decline, and the perspective provided by all this on the present debt. To be sure, the authors have some lucid moments. Pointing to President Bush's saying we have "more will than wallet," when it comes to reducing deficits and the federal debt, SC say we have the wallet |pp. 216-19~.

Their early history strikes this reviewer as more satisfactory than the later history when debt, money, and markets are more complicated. Monetary complexity comes with the 1920s, the great depression, the Keynesian era, and the Reagan presidency. But this--though...