Synopses & Reviews
What would Washington, Jefferson, Madison, Lincoln, the Roosevelts, Truman, and Eisenhower have done about todayand#8217;s federal debt crisis?
Americaand#8217;s Fiscal Constitution tells the remarkable story of fiscal heroes who imposed clear limits on the use of federal debt, limits that for two centuries were part of an unwritten constitution. Those national leaders borrowed only for extraordinary purposes and relied on well-defined budget practices to balance federal spending and revenues.
That traditional fiscal constitution collapsed in 2001. Afterwardand#151;for the first time in historyand#151;federal elected officials cut taxes during war, funded permanent new programs entirely with debt, grew dependent on foreign creditors, and claimed that the economy could not thrive without routine federal borrowing.
For most of the nationand#8217;s history, conservatives fought to restrain the growth of government by insisting that new programs be paid for with taxation, while progressives sought to preserve opportunities for people on the way up by balancing budgets. Virtually all mainstream politicians recognized that excessive debt could jeopardize private investment and national independence.
With original scholarship and the benefit of experience in finance and public service, Bill White dispels common budget myths and distills practical lessons from the nationand#8217;s five previous spikes in debt. Americaand#8217;s Fiscal Constitution offers an objective and hopeful guide for people trying to make sense of the nationand#8217;s current, most severe, debt crisis and its impact on their lives and our future.
Review
and#147;Will be music to the ears of budget hawks everywhereand#133;This is an important book.and#8221;and#150;
New York Times Book Reviewand#147;Something remarkableand#133;a fascinating book about our economic history and#133;Americaand#8217;s Fiscal Constitution tells the story of how America has dealt with its debt since its founding, and in doing so provides a compelling roadmap to a more responsible fiscal future.and#8221;and#150;President Bill Clinton
and#147;Perhaps the best chance to avoid fiscal Armageddon will come from educating the public in the pre-Keynesian virtues of balancing the nation's books. To this end, and#145;America's Fiscal Constitutionand#8217; serves a noble purpose.and#8221; and#150;the Wall Street Journal
and#147;An unusual and important bookand#133;[White] is no starry-eyed optimist and recognizes the serious political obstacles to his program. But he argues that because the reforms he supports aim to revitalize a fiscal tradition that has deep roots in American culture and history, the public can be brought around to support the sometimes painful choices they would require.and#8221;and#150;Foreign Affairs
and#147;However, rather than merely argue in the abstract, the author undergirds his case by recommending specific steps to alleviate the crisis, including, among others, establishing solely tax-financed budgets and putting bonds up for national election. Reading between the lines, White is recommending much moreand#151;and therein lies controversy, especially when it comes to military spending. A book that deserves much attention.and#8221;and#150; Kirkus Reviews
and#147;With its powerful blend of national history and government analysis, America's Fiscal Constitution is a pick for any political studies collection.and#8221; and#151;Midwest Book Review
and#147;Our nation cannot be strong militarily, diplomatically or politically unless it is strong economically, and we cannot remain strong economically unless we deal with our massive debt burdenand#133;A must read for those who believe that we should get our economic house in order.and#8221;and#150;James A. Baker III, former Secretary of the Treasury and Secretary of State
and#147;In order to understand our fiscal plight, it's crucial to appreciate how carefully America has dealt with debt in the past. Bill White makes that tale fascinating.and#8221;and#150;Walter Isaacson, best-selling author and former CEO of CNN and managing editor of Time magazine
and#147;and#133;Lucid and pioneeringand#133;a compelling and illuminating formula for both economic growth and fiscal restraint."and#150;James MacGregor Burns, Pulitzer Prize-winning historian and Professor Emeritus at Williams College
and#147;There are few Americans I trust more than Bill White. With history as his guide, White trailblazes through the Washington, D.C. bureaucratic jungle, revealing Big Truths that are bolstered with Hard Facts.and#8221;and#150;Douglas Brinkley, Professor at Rice University and CBS News Historian
and#147;A thought-provoking and well-told history of our nation's traditional financial principles. Every citizen can benefit from this bookand#8217;s practical insights.and#8221;and#150;Ross Perot
and#147;Bill White's thorough understanding of both finance and government allows him to trace the history of America's path to the edge of fiscal irresponsibility.and#8221;and#150;Erskine Bowles,Co-Chairman of National Commission on Fiscal Responsibility
and#147;Powerful, penetrating and persuasiveand#133;a tour de force of our fiscal history. A timely and important contribution to the raging debate on our fiscal future.and#8221;and#150;Kent Conrad (D), former Chairman of the US Senate Budget Committee
and#147;Our federal statutory debt is now larger than the entire American economy. This is unsustainable. Everyone needs to read this bookand#133;now.and#8221;and#150;Pete Domenici (R), former Chairman of the US Senate Budget Committee
and#147;By decrying skyrocketing federal deficits and debt, this author and#151; a banker and former mayor of Houston and#151; shows heand#8217;s not a typical Democratand#133; White makes reform suggestions but mainly shows how different todayand#8217;s federal attitude toward public debt is from what it once was.and#8221; and#151;Pittsburgh Tribune-Review
Synopsis
Through eye-opening analysis of the role of debt in American history, a renowned finance expert and three-term Democratic mayor of Houston illuminates how debt now threatens our futureBill White is a fiscally conservative politician with progressive principles. In Americas Fiscal Constitution, he tells the story of generations of leaders, beginning with our founding fathers, who established clear limits on federal debta remarkable tradition that suddenly collapsed.
For over 180 years the U.S. government borrowed only to preserve the union, expand and link federal territory, wage war, and plug temporary budget holes during economic downturns. Federal leaders then imposed tax rates that reduced the burden of debt once the emergency need passed. But since 2000, the federal government has borrowed to pay for routine operating expenses, and the traditional link between spending and taxation has been broken. White dispels common myths and highlights practical lessons gleaned from prior struggles to balance the budget. The profiles in courage he provides of past budget leaders highlight the type of leadership missing today.
Americas Fiscal Constitution provides a sorely neededand hopefulhistorical context in the debate on a pressing contemporary problem.
Synopsis
In
America's Fiscal Constitution, Bill White—a finance expert and three time former Houston mayor—tells the story of generations of leaders who established clear limits on federal debt. He describes how debt has grown to threaten the nation's future after the collapse of those traditional limits in 2001.
For almost two centuries the US government borrowed only to wage war, plug temporary budget holes during downturn, expand and secure national borders, and preserve the Union. Borrowing ended immediately after the emergency passed. Since 2001, however, federal leaders broke the traditional link between tax and spending policies and borrowed to pay for both emergencies and routine operating expenses. White dispels common myths and highlights practical lessons from history on how the nation can return to the time-tested trail of fiscal safety.
For Americans trying to make sense of today's budget crisis—and those worried about future economic opportunities—America's Fiscal Constitution provides an original, hopeful, and objective context.
About the Author
Bill White is chairman of Houston Banking and senior advisor for Lazard, a firm advising corporate executives, boards, and governments throughout the world. He served as mayor of Houston from 2003 to 2009 and deputy secretary of energy during the Clinton administration. As mayor of Houston, White received the prestigious John F. Kennedy Profiles in Courage Award for his leadership of relief efforts following Hurricane Katrina and Governing magazines Governing Official of the Year award in 2007. He has been a successful CEO, has served on the boards of numerous corporations. White ran for governor in 2010 against Rick Perry, receiving more votes than any Democratic candidate in the history of Texas.