The main subject of this book review is a title called “Where Does the Money Go?”, written by Scott Bittle and Jean Johnson. Their book centers on the problems of the American economy and the federal budget crisis. Like many authors before and after them, the pair attempt to discuss the difficult subject of the US economy and its many failings. They highlight problems within the public and private sector, further focusing on some of the emerging and long-standing problems. Particularly, they pay attention to the issues of social benefits, protections, medical care, housing, and many more. Being one of the wealthiest countries in the world, the United States has had to operate on principles of austerity, limited social spending and loans to other entities in order to sustain itself.
The spending is unequal, being extremely apparent in some areas and non-existent in others. The authors attempt to untangle this complicated subject and discuss it in a manner that brings a regular person up to speed, using a lighthearted but focused approach. At its core, it is a book designed to help people better navigate in society. The writers hope that by providing people with the necessary information, grassroots change can be enacted in order to mend the many economic issues of the nation. In their overview, they also present available options for combatting the problem and how they have fared so far. The book review will attempt to discuss some of the major themes presented in work, and provide commentary on them. The overall evaluation of the book is as follows –Bittle and Johnson have managed to make the topic of economics approachable in a way few others have succeeded in, bringing in a large audience and spreading awareness. Works such as this one are extremely important in helping people have a tangible effect both on their local communities and society at large.
How Debt Affects the Nation: Budget and the Lack of Social Safety Net
The central focus of the book is placed on the issues caused by an excessive amount of national debt the country is in. In the state the US was at the time of its publishing, the national debt was a key factor in the lack of public infrastructure development. The authors suppose that the politics of austerity and other budgeting choices worked to significantly cripple the public sector (Bittle & Johnson, 2011). By amassing large debts, the government then placed the burden of paying them off on the regular people. During the time after the 2008 financial crash, specifically, these trends could be seen most clearly. Reduced social spending, coupled with heavy taxation, was used to remedy national debt. The use of both taxes and relinquished financial aid affected the lower classes the most, making it a challenge to survive. The authors talk about the problems of austerity and its effects on the population at length, providing specific reasons as to why it is an unsuitable solution. Policies that deteriorate the public sector affect the majority of the population, while the people that put them into place remain comfortable in their stability. The effects of the financial crash, coupled with the government’s response to it, the authors propose, have had a significant impact on the severity of the nation’s debt.
Need for Quick Change
With the economic trends the authors discuss, there is a considerable danger of the US economy amassing further debt, rendering it unable to fulfill its social obligations. The lack of direct action from politicians, and an overall reluctance to combat the situation writers pose, will lead to many issues for the future generations. In particular, the state will be unable to care for the aging demographics or provide sufficient conditions for them to live comfortably (Bittle & Johnson, 2011). Both medical needs and housing are out of the current capabilities of the government, leaving many individuals with no security in their future. The authors attempt to make it clear that direct action is needed as soon as possible. The sense of urgency is built on a combination of time constraints, the deteriorating public sector, and the dangers of foreign investments. As the writers highlight, much of what comprises the US national debt comes from foreign sources, making it necessary for the nation to remain financially stable and lucrative. With the size of its markets, international connections, and technological capabilities, America is a great business investment and a stable market for many foreign interests. However, this status can change significantly, if the US amasses considerable debt, or if its social problems start affecting the financial sector in a more direct way. Bittle and Johnson suppose that the nation must resolve the mounting debt issue in order to retain its foreign investors and a strong position as an international superpower.
Making Informed Choices
The central goal of this book is to help individuals make more informed choices, both in their day-to-day lives and in the political sphere. By providing data sourced from many other professionals and economists, the authors gain credibility and a variety of thought. Instead of pushing for a particular conclusion or outlining a specific solution, they work on presenting potential opportunities for change and helping the readers decide which ones they think would work best (Bittle & Johnson, 2011). Combining a realistic expectation of change with hopeful optimism and joke-filled narrative, Bittle and Johnson choose a straightforward pathway to enacting change in the public mind. However, certain criticism must be levied at their attempt.
In particular, most people that would likely read this book, instead of a serious financial analysis, an op-ed or a research article are regular people. The audience the book caters to are everyday American readers, the ones most acutely affected by the rise of national debt and US budgeting problems. This focus means that many would find the information within useful to their day-to-day struggles and their understanding of the world. However, this demographic will also struggle in enacting meaningful or significant change in society. Despite having the capacity to understand the economy, or be represented by a government official, most individuals do not have sufficient levels of influence to effectively use what they learned from this book. Because of this, the messages can be seen as rather impractical.
Conclusion
This book on budgeting combines the two difficult goals of explaining an economics-focused subject to a wide audience and entertaining its readers, which is considerably difficult to do. In its analysis, the work manages to combine insights from various sources, synthesizing a complete narrative from existing data. In addition, the authors highlight problems many people can relate to, analyzing them on a systematic level. Many of the existing social problems are traced back to the questions of national debt, and the subsequent inability of the government to resolve the issue.
Reference
Bittle, S., & Johnson, J. (2011). Where does the money go? Rev ed: Your guided tour to the federal budget crisis. HarperCollins.