Moving Back to Our Economic Future

About the BookAuthor Warren Gregory proposes a much different approach for economic recovery than those currently emanating from Washington D.C. or various state capitals; one that promises a return to America's "Golden Years" from 1947 to 1973. Rather than continuing to rely on the failed policies of Laissez-Faire or Keynesian economics, the adoption of Investment Budgeting as our fiscal policy would mean a long overdue recognition of its economic successes. The book opens with a discussion about who has the power to control American economic and fiscal policy. This discussion makes it easier for the reader to understand today's economic decisions. Gregory uses the history of Social Security to answer whether big business or public opinion controls economic decision making. Investment Budgeting, aptly named by the Author, would invest in "strategic" infrastructure; that is, putting more public dollars into projects that improve private sector productivity and therefore result in more business investment into the economy. Investment Budgeting strengthens the middle-class by having more Americans working at good paying jobs and having income flowing from the bottom-up rather than from the top-down. This was the direction of the income flow during America's 'Golden Age," that was noted for having a strong and growing middle-class. Without a strong middle-class, the Author maintains, America will further resemble third world countries with their widespread income disparities between the rich and the rest of society.In addressing his topic, Gregory discusses income inequality, trickle-down economics, Keynesian economics, the multiplier effect, the history of public investments, get-rich versus get-poor strategies, a greater propensity to save versus a greater propensity to consume, the "excess labor force," and the economic marginalization of the Black underclass. To better understand where this nation's economy is currently headed, Gregory's chapter "measuring income inequality" is especially enlightening.To properly implement an Investment Budget, Gregory closes with a series of recommendations, including a sales tax on services and a regular review of tax expenditures to see if they are outdated or simply not meeting public objectives. The Author closes by noting that no business can be expected to invest in a country or state that will not first invest in itself.