In language that is understandable to non-economists, this work introduces students to the interrelationship of politics and economics in America—how economics influences public policy and how public policy can impact the economy.

Students learn how the U.S. economy works (domestically and in its global connectedness), how to measure economic performance, how government intervenes in the market to influence economic performance and redistribute resources, and how policymakers act to protect the public interest in an economic system based on private interests.

The author provides historical background for contemporary problems. He explains basic economic and policymaking concepts in an issue-relevant context, with concrete examples inspired by ongoing policy debates in Washington regarding balancing economic growth and inflation, rising income inequality and the condition of the middle class, retirement security, budget deficits, national debt, trade deficits, the benefits and costs of globalization, and more.

“[This textbook] deals with vitally important public policy issues—deficits and debt, economic performance, regulation and deregulation, globalization, social services, and income distribution. It presents complicated information in a manner that is both accessible for undergraduate students and insightful for graduate students. Gosling understands how economics and politics are intertwined in public policy decision making, and writes about the causes and consequences of policy decisions with clarity and style.” — Thomas P. Lauth, The University of Georgia (*)

“John Kenneth Galbraith once said, ‘In economics, the majority is always wrong.’ How can we reconcile disagreements among economists and conflicting visions of our political future? In an era where politics is increasingly polarized, and discussions of the economy can be thinly disguised screeds, this book stands apart. The course Gosling steers is not a compromise, not a watered-down ‘neutral’ discussion, but rather a fair-minded and informative presentation of all points of view. ... I can't imagine a better, more current, or more informative text on American public policy and the relations between politics and economics.” — Michael Munger, Duke University

“Had my students read a book like this before they came into my class, they would have been better students, better researchers, and better citizens. … Assuming no prior knowledge, Gosling describes technical terms in layman's language, discusses how these concepts are supposed to work, tells the reader who is making these decisions in what kind of structure, and then traces the history of how these structures have worked, or not worked, over time. From the Fed and money supply to tax breaks, debts, and deficits, the book answers two main questions, what is it, and why should we care.” — Irene Rubin, Northern Illinois University