Book Description
As Irene Rubin has shown convincingly in past editions, public budgeting is inherently political. Short-term partisan goals overrun long-term public interest and democratic processes, eroding institutional and public capacity to address collective problems. By presenting federal, state, and local budgeting within a comparative framework, Rubin's classic text gives explicit attention to issues of federalism, always sensitive to the power struggles between the different branches and levels of government. How much control is exerted from above and what degree of autonomy can be found at each level of government? What kind of influence do elected officials wield over government priorities? How do we resolve the tension between patronage, pork, and tax breaks necessary for reelection and the requirements of balance, technical efficiency, and prioritization?
Analyzing each strand of the decision-making process, Rubin shows the extraordinary coordination involved in passing a budget and achieving some level of accountability. By moving beyond the simplistic and rigid "executive proposal and legislative disposal" cycle other books follow, Rubin explores shifts in power over time and explains decisions that do not always flow in a linear fashion.
A thorough revision at every turn, updates include:
- the return to massive deficits at the federal level, requiring more attention on the relationship between budget process and outcomes
- the resurgence of secrecy in recent years, looking at how and why the level of transparency decreases at some times and increases at others the implications of 9/11, exploring the impact of funding wars in Afghanistan and Iraq
- the difficulty of getting Inspectors General sufficient independence and cooperation to implement their work, showing how these officials are "straddling a barbed wire fence"
- over twenty new minicase studies
Customer Reviews:
Real-time Budgeting View.......2002-12-20
Those of you who read Aaron Wildavsky's (1979) "Politics of the Budgetary Process" know the big debate over public budgeting between those who believe public budgeting process is politically incremental and, therefore, who focus mainly on the individual actors and their strategies, and those who propose a more comprehensive and global outlook that focus on dynamics in the larger environment, which subsequently affect and shape how individual actors behave and respond to episodes.
Rather than approaching public budgeting from the narrow perspective of incremental view of public budgeting, which sees budgeting as negotiations among a group of routine actors, bureaucrats, budget officials, chief executives, and legislators, who meet each year and bargain to resolution, in "The Politics of Public Budgeting" Rubin (2000) develops what she calls "real-time budgeting" perspective, which refers to the continual adjustment of decisions in each stream to decisions and information coming from other streams and from the environment. Streams include:
The Revenue Cluster: Revenue decisions include technical estimates of how much income will be available for the following year, assuming no change in the tax structures, and policy decisions about changes in the level or type of taxation. Will taxes be raised or lowered? Will tax breaks be granted, and if so, to whom, for what purpose. Which tax sources will be emphasized, which de-emphasized, with what effect on regions and economic classes, or on age groups?
The Budget Process Cluster: The process cluster concerns how to make budget decisions. Who should participate in the budget deliberations? How influential should interest groups be? How much power should the legislature have? How should the work be divided, and when should particular decisions be made?
The Expenditure Cluster: The expenditure cluster involves some technical estimates of likely expenditures such as for grants that are dependent on formulas and benefit programs whose costs depend on the level of unemployment. Policy relevant expenditure questions involve which programs will be funded at what level, who will benefit from public programs and who will not, and similar questions.
The Balance Cluster: The Balance cluster concerns the basic budgetary question of whether the budget has to be balanced each year with each year's revenues, or whether borrowing is allowed to balance the budget, and if so, how much, for how long, and for what purposes.
Budget Implementation Cluster: Budget implementation cluster concerns the basic budgetary questions of how close actual expenditures should be to the ones planned in the budget, how one can justify variation from the budget plan, and the budget can be remade after it is approved during the budget year.
According to Rubin (2000), "budget outcomes are not solely the result of budget actors negotiating with one another in a free-for-all; outcomes depend on the environment, and on the budget process as well as individual strategies". "Individual strategies have to be framed in a broader context than simply perceived self-interest" (p. 33). What happens in the clusters consequentially is affected by the global environment of public budgeting and the perceptions and strategies of individual budget actors are adjusted accordingly. The clusters model of Rubin (2000) reminisces the "policy environments framework" (developed by Nakamura and Smallwood [1980]) that views public policy process as a simultaneously interaction among individual actors, elements of importance and arenas of power in three policy environments (policy formation, policy implementation and policy evaluation environments) with each environment having influence on the other ones with the help of communication linkages that let each actor in one environment the opportunity to send message to the others in the other environments. In Rubin's real-time budgeting view, each cluster is imbued with different questions and each cluster attracts a different characteristic set of actors and generates its typical pattern of politics (p. 27) and what happens in each cluster is influenced by the episodes in the larger policy environment.
Based on the real-time view of public budgeting, Rubin (2000) organizes her book into nine major chapters, with each chapter explaining the clusters in detail and supporting arguments with didactic short case studies. In general, the book provides the reader with a dynamic and rich description of budgeting process in public sector.
Having reviewed public budgeting process, Rubin (2000) recommends that a balance of power should be established and maintained between the executive and the legislature, so one can catch the other at bad practice-a recommendation running contrary to the argument that to solve federal budget deficit problem either the executive or the legislature has to be empowered.
Overall, Rubin's book is a well-written, clear, and descriptive account of public budgeting process, and, so entertaining and engaging that create a sense in the reader that s/he should read more about the subject to better comprehend the complexity and dynamism of public budgeting. I recommend "The Politics of Public Budgeting" as a powerful text to those who are interested in the subject. Also recommended are "Politics of the Budgetary Process" by Aaron Wildavsky (1979), "Public Budgeting Systems" by Robert D. Lee and Ronald W. Johnson (1998), "Public Budgeting in America" by Thomas D. Lynch (1995), and "The Federal Budget: Politics, Policy, Process" by Allen Schick (2000).
Book Description
Exceeding $2 trillion annually, health care spending in the United States is growing significantly faster than the national economy. If left unchecked, this health spending crisis will threaten Americans' ability to pay for other essential services. Driven primarily by the cost of benefits promised to seniors under Medicare and Medicaid, federal health expenditures will force lawmakers to make stark policy decisions. In this third volume of Restoring Fiscal Sanity, policy experts suggest ways to slow the growth of federal spending on health care.
Unless federal health spending can be brought under control, Americans will face substantially higher taxes, sharp reductions in other government programs, and cuts in benefits to the elderly. Families, businesses, and communities will be forced to make agonizing choices between health care and other needs. Focusing on policies that do not shift costs to the states or the private sector, the authors of Restoring Fiscal Sanity 2007 suggest reforms in federal programs that have the potential to reduce the growth of spending for the entire health system, increase the efficiency and effectiveness of the care provided, and enhance health outcomes. Drawing on years of government and public policy experience, they stress the need for innovative approaches and cooperation between the private and public sectors.
Book Description
When Bush came to office in 2001, the 10-year budget balance was officially projected to be at a surplus of $5.6 trillion. But after three big tax cuts, the bursting of the stock-market bubble, and the devastating effects of 9/11on the economy, the surplus has evaporated, and the deficit is expected to grow to $ 5-trillion over the next decade. The domestic deficit is only the half of it. Given our $500 billion trade deficit and our anemic savings rate, we depend on an unprecedented $2 billion of foreign capital every working day. If foreign confidence were to wane, this could lead to the dreaded hard landing.
Peter G. Peterson--a lifelong Republican, chairman of the Blackstone Group, and former secretary of commerce under Nixon--shatters the myths with hard facts and a harrowing view of the twin deficit's real impact. Republicans and Democrats alike have mortgaged America's future through reckless tax cuts, out-of-control spending and Enron-style accounting in Congress. And the situation will only get worse as the Baby Boom generation begins to retire, making unprecedented demands on entitlement programs like Social Security and Medicare. Despite what Bush says, we are on a path that could end in economic meltdown, and we simply cannot grow out of the deficit.
In Running On Empty, Peterson sounds the warning bell and prescribes a set of detailed solutions which, if implemented early, will prevent the need for draconian measures later. He takes us behind the politicians' smoke-and-mirror games, and forcefully explains what we must do to rescue the future of our country.
Customer Reviews:
Everyone should read this book........2007-09-01
Although Peterson is a Republican, his explanation about the legacy of debt we are passing on to our children is bipartisan. Peterson realizes that there is ample blame to spread between both parties! Our country's lack of fiscal responsibility and logical fiscal thinking will cost our country its future if something radical is not done soon. While attacking Social Security is unspeakable, we are rapidly approaching a time when we will have to apply a needs test to receiving benefits. Our current form of patchwork health care is costing us far more money in the long run than creating an intelligent form of universal health care ever could. The war in Iraq is also destroying our economic future as is the cost of a college education. Although as someone noted, Peterson's solutions were far too brief, his willingness to address these issues with clarity will hopefully serve the purpose of driving partisan discussions and creating a desire to reform the systems that will financially destroy our country.
Time for updated edition.......2007-08-07
This is another essential book in the runup to 2008 primaries and elections (* three others are listed below), as it confronts the economic elephant in America's room that threatens our futures and those of our children and grandchildren.
While the book is nearly three years old and ready for an update, the conclusion today is overwhelming: We are facing a crisis, and whoever wins the presidency in 2008 must create a coalition government beholden to no political theology. This government must divorce itself from Republican and Democratic orthodoxies. The parties have fed on each other in a destructive way. The Republicans tax too little and the Democrats spend too much, and they have borrowed the worst from each other and corrupted responsible governance in countless ways. The bill is past due, and the evidence is inescapable.
It is not pretty reading, damns both parties in equal measure, and points toward solutions, particularly a fairer tax system on corporate profits and urgent rethinking of entitlements.
Pete Peterson brings serious credibility to the discussion, not only as a University of Chicago-schooled fiscal conservative, but as co-founder of the Blackstone Group, chair of the Council on Foreign Relations and a principal in the Concord Coalition, a nonprofit dedicated to fiscal responsibility at www.concordcoalition.org.
This book kept a small group of us awake in early 2005 after we heard and met Mr. Peterson at a conference at the United Nations, read the book and compared notes. Revisiting this book today, the message is more urgent than ever, and the paperback edition is in sore need of an update, at the very least in the introduction and postscript. The evidence is doubtless more dire than it was, but we need to hear it, particularly as our credit markets wobble.
In the current environment, neither party's candidates show real signs of confronting Peterson's formidable evidence. While the Democrats at least show early signs of grappling with issues, they deserve further prodding.
The Republican party is deep into its decadent phase, with Bush-Cheney-Rove the agents of its moral and intellectual bankruptcy. Ron Paul is at least providing some coherent ideas amid the poseurs of the moment and John McCain knows better, but neither is swaying anything.
Since 1980, when Republican congressional candidates drew the Laffer curve on napkins to demonstrate their mastery of economic quackery, the party has grown increasingly faith-based, denying evidence in the fervor of a theological belief in tax cuts.
Those cuts made proven sense after Reagan cut marginal tax rates from 71 to 50 percent, but no sense at all as Bush cuts into the bone in the low 30s and tries to make it permanent as bridges, highways, our military and trust funds go wanting and as we borrow more from the Chinese to fund our spendthrift ways.
The first step toward recovery of our bearings is facing what is. Every candidate in 2008 should be closely questioned about the evidence from Peterson and the COncord Coalition. One prays that the winner of the next election would look beyond our short-term, infotainment-driven culture of the moment, and just Do The Right Thing to keep our country strong and free at this late hour.
* P.S.: The other three books: Tragic Legacy by Glenn Greenwald (the best book on the consequences of the Bush regime's mindset); Vice: Dick Cheney and the Hijacking of the American Presidency by Lou Dubose and Jake Bernstein, and Second Chance by Zbigniew Brzrezinski (a powerful foreign policy primer on the last three administrations, with some roadmaps of solutions).
This book is fantastic (and that's bad).......2007-05-23
It is critically important that every voting adult read this book. It explains: 1) Why deficits are bad, 2) How we created such large deficits 3) Who's responsible (hint: both democrats and republicans) 4) What we can do to fix the problem, 5) what could happen if we don't. It is as unbiased a politcal book as can be written. It has an entire chapter devoted each to destroying the democratic and republican myths that keep us in deficits. This is a book that I personally recommend to everyone I speak to about books or politics.
great bookclub discussion.......2007-03-24
Our book club had a great discussion after reading this book. He writes a compelling story of our situation. I thought he could have been stronger on possible solutions.
Heaven help us--our politicians will continue being politicians (both Ds and Rs) until we all go down together on this Titanic earthen voyage.
How did this become a best seller?.......2007-01-31
This book is an emotional appeal that will leave you 'empty'
The author does not cite sources. It is sadly true, there is no bibliography. No one in the academic community could get away with this.
Do not waste your time reading someone's opinion that is not legitimately cited.
Average customer rating:
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Taxes, Spending, and the U.S. Government's March Towards Bankruptcy
Daniel N. Shaviro
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The Myth of the Rational Voter: Why Democracies Choose Bad Policies
ASIN: 0521869331 |
Book Description
What's in a word? Plenty, when it's a word such as “taxes,” “spending,” or “deficits” that pervades Washington political debate despite lacking coherent economic content. The United States is moving toward a possible catastrophic fiscal collapse. The country may not get there, but the risk is unmistakable and growing. The “fiscal language” of taxes, spending, and deficits has played a huge and underappreciated role in the decisions that have pushed the nation in this dangerous direction. This book proposes a better fiscal language for U.S. budgetary policy, rooted in economic fundamentals such as wealth distribution and resource allocation in lieu of “taxes” and “spending” and in the use of multiple measures (such as the fiscal gap and generational accounting) to replace misguided reliance on annual budget deficits.
Book Description
Peter Lindert inquires as to whether social policies that redistribute income impose constraints on economic growth. Although taxes and transfers have been debated for centuries, only recently have we been able to obtain a clear view of the evolution of social spending. Lindert argues that, contrary to the intuition of many economists and the ideology of many politicians, social spending has contributed to, rather than inhibited, economic growth. Peter Lindert is a prize-winning researcher and teacher at the University of California-Davis where he serves as President of the Economic History Association and as Co-Editor of its journal. His textbooks in international economics have been translated into at least eight other languages, and he has previously taught at the University of Essex, Harvard University, Moscow State University, and University of Wisconsin.
Customer Reviews:
Counterintuitive and powerful........2005-08-20
The conventional wisdom among the members of the public is that the European welfare state is based on progressive taxation, with the government taking the role of Robin Hood. Lindert totally refutes this notion. He shows convincingly that throughout the modern history, the greater welfare expenditure has always been accompanied by increasingly regressive taxation, contrary to what people--especially American liberals--tend to believe. While the tax on income may appear more progressive, this hides both the fact that most European countries--especially those with high welfare expenditures--rely heavily on indirect taxes which are generally regressive in nature, and that numerous loopholes reduce effective tax rate even for income. The logic driving the study is simple: people pay for what they get; they don't put up with being forced to pay for what they don't get.
This is not a completely new notion--Sven Steinmo has done a similar study, albeit over a much shorter time span and concerning a lot fewer countries, with similar findings, but the study remains rather obscure. One hopes that more people read thes studies--which they probably won't--so that many of the common misperceptions about social policy (even among professional economists!) would go away.
Your best hopes confirmed.......2005-04-04
Peter Lindert has done humanity a great service, settled many scores, and given us both a perspective and a vocabulary with which to address the contentious issue of social spending and wealth transfer.
"Growing Public" is one of the greatest contributions to Economic theory in the past century. Anyone with a social conscience owes it to himself to read this book and make its findings widely known.
One of the book's many virtues (it is based upon very hard historical data) is that it is entirely readable.
Clear headed and practical.......2004-06-17
This is a very informative book that clears up lots of misconceptions. It explains why the "wellfare state" is still around, even after so many death notices. The analysis shows that there is no net negative cost for comprehensive and universal social programs, and that there are often significant benefits. For those who can read this book without ideological and political blinders, there is much to learn from Peter Lindert's book.
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Making Medical Spending Decisions: the Law, Ethics, and Economics of Rationing Mechanisms
Mark A. Hall
Manufacturer: Oxford University Press, USA
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ASIN: 0195092198 |
Book Description
A fresh and comprehensive exploration of how health care rationing decisions are made, this book offers not specific criteria for rationing--like age or quality of life--but a comparative analysis of three alternative decision makers: consumers paying out of pocket, government and insurance officials setting limits on treatments and coverage, and physicians making decisions at the bedside. Hall's analysis reveals that none of these alternatives is uniformly superior, and, therefore, a mix of all three is inevitable. The author develops his analysis along three lines of reasoning: political economics, ethics, and law. The economic dimension addresses the practical feasibility of each method for making spending decisions. The ethical dimension discusses several theories--principally classic liberalism, social contract theory, and communitarianism--as well as concepts like autonomy and coercion. The legal dimension follows recent developments in legal doctrine such as informed consent, insurance coverage disputes, and the emerging direction of federal regulation. Hall concludes that physician rationing at the bedside is far more promising than medical ethicists and the medical profession have traditionally allowed.
Customer Reviews:
A good read.......2005-04-16
I only wish to disagree with the professional reviewer cited above, who says that Payne writes with an "academic writing style." In fact, this book is very readable and is not weighted down with academic jargon. He makes a good case for an aspect of the legislative process that is often overlooked. If you are a student of government, you should read this book.
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Tax Expenditures - Shedding Light on Government Spending Through the Tax System: Lessons from Developed and Transition Economies (Directions in Development)
International Forum on Tax Expenditures
Manufacturer: World Bank Publications
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ASIN: 0821356011 |
Book Description
This book asks why some countries devote the lion’s share of their social policy resources to the elderly, while others have a more balanced repertoire of social spending. Far from being the outcome of demands for welfare spending by powerful age-based groups in society, the ‘age’ of welfare is an unintended consequence of the way that social programs are set up. The way that politicians use welfare state spending to compete for votes, along either programmatic or particularistic lines, locks these early institutional choices into place. So while society is changing - aging, divorcing, moving in and out of the labor force over the life course in new ways - social policies do not evolve to catch up. The result, in occupational welfare states like Italy, the United States, and Japan, is social spending that favors the elderly and leaves working-aged adults and children largely to fend for themselves.
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Deficit Hysteria: A Common Sense Look at America's Rush to Balance the Budget
Arthur Benavie
Manufacturer: Praeger Publishers
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Financial Accounting (6th Edition) (Charles T Horngren Series in Accounting)
ASIN: 027596308X |
Book Description
The political consensus in the United States today is that the nation avoid deficit spending. But as virtuous and unassailable as that goal sounds, it has fallacies and dangers. In a lucid, nontechnical writing style, Benavie shows that deficits can be either good or bad and explains how to tell the difference. Deficits, or government borrowing, can be beneficial or harmful depending on what the government does with the money. Preventing such borrowing, Benavie points out, would be comparable to preventing one's family from borrowing money to buy a house or to put a child through college. Deficits can be beneficial to the nation's economic health in three main ways. When the economy slumps, a deficit, which is automatically created, helps to reduce the severity of the recession. When the economy is seriously depressed, boosting the deficit may be the only cure. Finally, deficits to support such investments as basic research, cleaning up toxic waste, and rebuilding inner cities are crucial to the economic health of future generations.
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