Harry E. Figgie

This book was written on the eve of the election which resulted in President Clinton succeeding President Bush (the first). In 1993, the authors predicted that the US would have to default on its debt -- the interest on the debt alone would exceed all tax revenue. [41]

I give this fascinating work a low rating because (1) it foresaw "economic collapse", but failed to foresee The Cause of what eventually happened in the Summer of 2008, and because (2) it fails to show an understanding of the role which regulations of the market (financial reforms policed by prosecutions of pirates) play in equalizing the playing field and protecting competition.

For example, when President Reagan buckled in to the demands of the financial lobby and lifted consumer "notice" requirements for credit card rates and terms, it is true that the nation experienced a surge of spending. However, consumers did not understand they were paying much higher prices, over time. They, and the authors of this book, did not understand the role played by Credit in the "debt" debacle.

I would give the book a high rating for (1) its reliance upon good sources of data [relying on objective governmental sources {pre-Rove}, and on the projections made for the 1992 Grace Commission), and for political courage: The authors do not resort to partisan name-calling.

The work clearly states the facts that Republican-controlled administrations and legislatures (Nixon, Bush I, and Reagan) have out-spent the Democrats (Johnson, Carter). Under the Republicans, the spending and the deficits have dramatically increased at the same time as taxes were raised. [31-40; chart on42-43].

Here are the facts: Johnson fought two wars, left us with a deficit of -$44.8 billion. Nixon ended both Viet Nam and the war on poverty, and left us with a deficit of -$67 billion. Ford increased the deficit to -$126.9 with no wars and in just two years. Carter inherited a recession and a Republican-controlled Congress, and he doubled the deficit to -$226.9 billion. Reagan campaigned against big government, big spending, and taxes -- in just eight years with a Republican-controlled Congress, Reagan converted the world's biggest creditor into the world's biggest debtor, and increased the deficit to -$1.34 TRILLION. Bush then almost matched that in just four years in office, with a deficit of -$1.04 Trillion. Bush also set new records for government spending, and in his last year, with a Republican-controlled Congress, overspent revenues by -$390.7 billion in that one year alone.

The authors' solution is to encourage citizens to vote. "Are we merely hapless, helpless victimes of shortsighted, self-serving, and demagoguing politicians?" No. [150].

The authors are also "saddened" by "what has happened to politics in the United States." [182] They note that more than half the eligible voters have opted out of the process, leaving control to "an elected monarchy" of politicians who increase perks to themselves while exempting themselves from the restrictive laws they impose on the rest of us.

{Reading this book is a reminder of how sick, economically and also politically, our nation had become by the end of the Reagan Era. But the predicted collapse did not come in 1995. The solution, of course came in the form of President Clinton and a team of appointed "public servants" who once again saw government as a powerful tool, and really the only tool, which can regulate, and so maintain, free markets. Once freed from the addiction to private monopolist "credit" terms, both the middle class / small business borrowers and levels of government itself were once again able to "invest". The economy boomed, and this time, it was not an illusion based on overspending.}… (mer)