Red Ink: Inside the High-Stakes Politics of the Federal Budget

by David Wessel

The Pulitzer-Prize-winning reporter, columnist, and bestselling author of In Fed We Trust, dissects the federal budget in this New York Times bestseller.In a sweeping narrative about the people and the politics behind the budget--a topic that is fiercely debated today in the halls of Congress and the media, and yet is often misunderstood by the American public--Wessel looks at the 2011 fiscal year (which ended September 30) to see where all the money was actually spent, and why the budget process has grown wildly out of control. Through the eyes of key people, including Jacob Lew, White House director of the Office of Management and Budget; Douglas Elmendorf, director of the Congressional Budget Office; Blackstone founder and former Commerce Secretary Pete Peterson; and more, Wessel gives readers an inside look at the making of our unsustainable budget.

Genres: Politics, Economics, Nonfiction, History, Business, American, Finance

208 pages, Kindle Edition

First published January 1, 2012

Reviews

[Nicole R · Rating 3 out of 5]

Disclaimer: I work for a U.S. Congressman. I spend months and months of my work year looking at the federal budgets for the Department of Commerce, the Department of Interior, the Department of Agriculture, and the Department of Energy (those are the government agencies in my "issues portfolio"). The news is continuously on the TV that is mounted on my desk right by my two monitor computer set-up (the monitor on the left is a mosaic of WSJ, NYT, WaPo, CNN, etc.). I use words like budget baseline, spending offset, kick the can down the road, fiscal cliff, and continuing budget resolution on a daily basis. I fight to keep the programs my boss supports from being cut to increase spending somewhere else.

My point of giving you a little insight to my professional life: I understand more about the budget than the typical American. I know about discretionary versus mandatory spending and why the mandatory spending is what is getting us in trouble. I know the main tenets of the Republican and Democratic parties when it comes to deficit reduction and the fundamental differences in both. I know that both R and D plans require a perfect storm of Congressional harmony.

For someone who doesn't have the intimate, every day interaction with our budget as I do (97% of the people who pick it up, probably) this book is a great overview of the budget and deficit issues we are currently facing. However, it is very much a 30,000 foot view. The writing is clear, concise, and helped along by a frugal number of graphs and charts when appropriate. I think this book is a quick, fairly nonpartisan (I think there is a little leaning, but not much) snapshot of the important issues driving the budget.

For me personally, I greatly appreciated the history of how we got into the current fiscal boondoggle. It was nice to better understand how we went from a budget surplus in the late 1990's to the annual deficit we currently operate under. However, I think I am ready for a more detailed explanation of what different deficit reduction plans actually entail and how that translates into various forms of savings.

For example, yesterday, I spent a substantial amount of time researching the political ads that say ObamaCare is being funded by cuts to Medicare. I don't need to know the nitty gritty, but I do want to know why one political party says this while the other doesn't while they are both looking at the same numbers and, in fact, both made the exact same proposed cuts to Medicare. Also, the only reason I have time to do things like this is because we're in August recess - those magical 5 weeks every year when all members of Congress go home to work/campaign and staffers stress level drops significantly as they actually have time to do research and become well-versed on platform planks.

This whole rant was a long-winded way of saying: this is a good book that explains important fiscal issues that will be more and more in the spotlight as we ramp up to November 6. If you have a good knowledge of the current issues, this book won't be a waste of your time, but it may not give you the satisfaction you were hoping for.

[Brian Pfeiffer · Rating 4 out of 5]

This is a short book that gives a broad overview of the U.S. federal budget, as well as the contemporary (at the time of publishing) politics that goes into crafting the country’s budget. I think that anyone who claims to be “politically literate” should have a basic understanding of our federal budget and this book is a great place to start.

While I personally would have liked more detail about the major areas the government spends on (healthcare, social security, military, and debt servicing), I found this book to be very engaging with its quick pace and anecdotes. One detail that stuck with me is how much our tax code and budget is complicated by tax credits as well as “temporary” waivers and subsidies. The author, Wessel, points out that most Americans in theory would favor tax reforms and a simpler tax structure. However, no one wants to lose out on the tax credits/deductions/loopholes that they enjoy and therein lies the major political dilemma for serious advocates of federal tax reform.

I appreciate how Wessel presents the contrasting partisan views about taxation and the budget in a neutral fashion. (Although it is ironic that Republicans under Trump have almost entirely stopped caring about the national deficit). He also emphasizes the real difficulties and sacrifices it would take significantly reduce the deficit or balance the budget. Taxes would either have to be raised significantly, and/or popular programs (Medicare, Medicaid, the military and Social Security) would need to have funding cut. As I suggested before with tax reform, there are sadly no easy or popular fixes that would adequately stabilize the federal budget.

Unfortunately, this book’s warnings were incredibly prescient. Wessel estimated that absent major reforms aimed at curbing the deficit, the U.S would have a debt-to-GDP ratio approaching 100% by 2022. In 2022, it was close to 120% thanks to Trump’s tax cuts and the stimulus spending during the COVID pandemic. We now spend more on interest on our national debt than on our military. I’m doubtful this country would have the political will to tackle on the national debt until it becomes an economic crisis, but if more Americans were aware of the realities described in this book it would be a huge step in the right direction for this country.

[Schnaucl · Rating 4 out of 5]

4.5 stars.

My dad recommended this book and loaned me his Nook to do it.

This offers a fairly comprehensive but easy to understand explanation of how the US ended up with such a large debt.

As far as I can tell it was pretty even handed except that it kept the number the banks borrowed to TARP levels, which Matt Taibbi and Nomi Prins (among others) would argue is way too low a figure. He also perpetuates the myth that the banks have paid back TARP, which, while it may be technically true, ignores the fact that in large parts the bank repaid the government loan by using other money the government loaned them that was supposed to go to other things, like extending credit to businesses. (But since Congress just suggested they use it for that purpose but didn't require it, shockingly, the banks used it to repay TARP so they wouldn't have the possibility of the government messing with their salaries and bonuses. You know, for doing such awesome jobs).

He makes some good points about military spending. For example, under law the US has to have 11 aircraft carriers at all times. The USS Enterprise will be decommissioned next year due to age, meaning we'll be down to 10. The thing is, aircraft carriers aren't as useful as they used to be. Their purpose (besides intimidation) was to provide a staging area if we needed to get aircraft into an area and there were no friendly places to serve as a base of operations. But now more and more countries have long range missiles and aircraft carriers, while obviously not entirely defenseless, are, in some ways, sitting ducks. He suggests a possible Pearl Harbor scenario. There's some good discussion about military expenditures.

Wessel does a good job talking about the major players of various schools of through, including Paul Ryan.

If you want to understand the debt you should read it. It's only about a hundred pages if you leave out the endnotes.

Recommended.

[Tiffani · Rating 4 out of 5]

Interesting read on the federal budget. Wessel gives a short history and explanation of how the federal government's funds are generated and where those funds are spent. The figures are overwhelming but any reader would find the book informational. The most powerful quote from the book comes from the CBO's director Doug Elmendorf, "The country faces a fundamental disconnect between the services the people expect the government to provide, particularly in the form of benefits for older Americans, and the tax revenues that people are willing to send the government to finance those services."

[Andy Farley · Rating 3 out of 5]

Extremely succinct, balanced hard lesson on the realities of the deficit. Essentially why we're totally fucked.

[N · Rating 4 out of 5]

Great overview of how the history and current status (well, as of 2012) of the federal budget and the appropriations process, in addition to the status of the modern tax code.

However, the author does not adequately contend with Paul Krugman's idea that the deficit crisis is overblown: that the fate of turning out like Greece had a lot of salience about 10 years ago, but has since turned out to be an unfounded fear. He only briefly put's Krugman's idea in conversation with Romer and proceeds to discount Krugman's thesis for the remainder of the chapter.

On the other hand, the author does cover certain, very real crises in national spending -- namely, the dwindling Social Security trust and unchecked defense spending increases. All in all, this book, written by a journalist, reads quickly and is fairly educational and simple.

[Douglas · Rating 5 out of 5]

Wessel gives an easy to understand description of the national debt. He looks at how politicians have used it as a talking point. Different proposals for reducing it are examined. He credits most economist as believing the debt can't be reduced without raising taxes and cutting spending on larger budget items (defense, social security, medicare, etc.) Voters are also responsible for addressing this. One telling quote read, "Americans do not want smaller government. They just want a cheaper government."

[Correen · Rating 5 out of 5]

It is a tough challenge to write an interesting book about the problems about funding our national budget. The problems are monumental and our problem solving capabilities seriously flawed. Explaining the problem in a non-partisan manner and explaining the strengths and weaknesses of all the of those who have attempted to provide a solution is an even more impossible task.

Wessel explains the situation well. He gives his own solution and then explains that it, too, is flawed.

[Robert Green · Rating 4 out of 5]

As Erskine Bowles states on the rear cover of this book, “Buy this book, or at least read the first chapter.” Gives a good concise overview of our US budget debt and deficit issue in easy to understand language for the non-budget wonk. A short read (at 162 pages if you don’t include endnotes). I took off 1 star since the numbers/data are a bit dated since it was published in 2012. With our annual deficits now at ~$1 trillion, why is this not a part of the national conversation?

[Lizzie · Rating 4 out of 5]

Published in 2012 but already a bit outdated, Red Ink is a concise and easy primer on the U.S. federal deficit. Despite the fact that our politics and our fiscal health have only spiraled down since publication, the book provides a concise history of federal debt and an even-handed list of the major concerns and schools of thought on how to address the challenge.

[Martha Snyder · Rating 2 out of 5]

The organization of the book was very logical. It gave the history to around 2013. What I didn't like was what I felt an over reliance on quotes, especially from Leon Panetta. I which Mr. Wessel had simply summarized more rather than quoting. I got tired of always being referred to Leon Panetta. It made me think I needed to stop this book and seek one by Leon.

[Shannon · Rating 3 out of 5]

A nice, short book that offers some of the complexities to balancing the U.S. federal budget & lowering the national deficit. However, it can get quite technical and has some jargon that may be difficult for some to follow who are not versed in political or economic terms.

[Scott Malof · Rating 5 out of 5]

Kick the can down the road

Good review of the major issue of my and future generations. Written several years before the latest tax cuts and massive spending bills. Where is the leadership and will to do the right and difficult choices?

[Rian · Rating 3 out of 5]

A good, but ultimately very general book that flies above the details for the sake of the uninformed reader. It’s valuable to have books like this, but I’m looking for something with more teeth on this subject.

[Joe Beeson · Rating 2 out of 5]

good book, not a great book to listen to, would revisit rating if I read the print edition

[Luke · Rating 3 out of 5]

Funny to reread this eight years later, post-CARES. Imagine panicking over a two trillion dollar deficit.

[Jared · Rating 3 out of 5]

Some red ink to go with all the red tape. 😅

Useful information and reasonably well written. Published in 2012 so a little out of date for the current budget and deficit.

[Breakingviews · Rating 4 out of 5]

By Rob Cox

To understand the current state of the U.S. federal budget - and the policies the next president will be forced to pursue from day one - there are two pieces of required reading. The first is a two-year old wonky white paper entitled “The Moment of Truth,” by the National Commission on Fiscal Responsibility and Reform. The second is “Red Ink,” David Wessel’s handy new guide to understanding the politics of the federal budget.

If the race between President Barack Obama and former Massachusetts Governor Mitt Romney is going to be about anything substantial, it should be a technocratic debate over how to fix the troubled balance sheet of the American republic. “The Moment of Truth,” otherwise known as the Bowles-Simpson plan for the names of its lead co-authors, and Wessel’s book offer two sides to the same coin. The first presents the danger to American power and prosperity from failure to address fiscal issues and proposes specific policy solutions. Wessel’s book explains why even the simplest and least painful of these will be so incredibly difficult to pursue.

Wessel, a Wall Street Journal columnist, could not have better timing. Romney’s selection of Paul Ryan as his running mate has the potential to turn the presidential race into a discussion of two competing visions for balancing the American checkbook. Ryan, chair of House Budget Committee and a central character in Wessel’s compact (162 page) study, was a member of the Bowles-Simpson commission. The bipartisan group of 18 members including six senators and six representatives tried to address the country’s fiscal challenges, but Ryan refused to support the majority’s findings. President Obama also declined to put his full weight behind the suggested policies.

The reason that the commission’s advice was not taken becomes apparent in Wessel’s accounting. While nobody loves the cost of government, everybody cherishes the things it specifically does for them - sending 11 aircraft carriers to ply the seas, putting a man on Mars or providing medical care to the poor and elderly. The last, along with the cost of Social Security and Medicaid, should be of greatest concern to future generations. At $555 billion, Medicare is already costs more than the Federal government spent in 1951 budget, adjusted for inflation. This reflects the wastefulness of the system rather than a doubling of the population. Last year this health insurance for the elderly consumed 21 percent of America’s total budget. If recent health care cost trends continue, the bill will rise by 75 percent over the next decade.

Wessel sums up the politics succinctly. “These diverse financial arrangements have one thing in common: at the end of the pipeline is some American who is getting a check or a promise. Most are convinced they deserve the money.” For example, the farmers who receive the $15 billion in annually farm subsidies, much of it in the form of no-strings attached “direct payments,” and $10 billion in crop insurance relief resist cuts, even though about half of the money goes to families with annual incomes higher than $100,000.

On the other side of the ledger from spending are taxes, specifically $1.1 trillion of deductions, exemptions or loopholes, or as Erskine Bowles, co-author of “Moment of Truth” with retired Republican Senator Alan Simpson, terms them “backdoor spending through the tax code.” Eliminating them could raise revenue nearly equal to half of the U.S. government’s top line. Getting rid of corporate loopholes alone would allow the overall tax rate paid by companies to fall to 28 percent from 35 percent.

But as Wessel notes, such tax increases are no easier than reducing beloved spending programs: “Congress and presidents have discovered something simple: giving people a tax break makes them happy without increasing government ’spending’ and can accomplish the same objective,” even though there’s no economic difference to Uncle Sam’s income statement.

Bowles-Simpson may offer a more clear-cut blueprint for righting America’s fiscal ship. But devoid of the political realities of a highly polarized Washington, it also oversimplifies the task the next president, and Congress, will face. Wessel’s book is the livelier, more readable companion to “The Moment of Truth.” Both shed valuable light on the inevitable political and legislative wrangling in the run-up to November’s election, and beyond.

[Book Shark · Rating 4 out of 5]

Red Ink: Inside the High-Stakes Politics of the Federal Budget by David Wessel

“Red Ink” is a very solid and concise book that provides the public with an essential understanding of how the Federal Budgetary process works. Pulitzer prize-winning author and economics editor for the Wall Street Journal, David Wessel takes the readers on a smooth ride through the US Federal Budgetary process. A book about the budgetary process can be dry and dull but Wessel's command of the topic and lucid prose makes this book a breeze to get through. This educational 208-page book is composed of the following five chapters: 1. Spending $400 Million An Hour, 2. How We Got Here, 3. Where the Money Goes, 4. Where the Money Comes From and Why this Can't Go On Forever.

Positives:
1. A well-written book, lucid and concise prose.
2. An important and perennial topic handled with expertise.
3. Does a very good job of covering the most important aspects of the Federal Budget in a brief intelligible manner.
4. Educational and enlightening book that provides a basic foundation in understanding the US Federal Budget.
5. Effective use of charts to illustrate points.
6. Fascinating tidbits and facts spruced throughout book.
7. Making it perfectly clear where all the money is spent. A nice and comprehensible breakdown.
8. Where nearly all the growth in the federal budget over the next ten years is coming from. Interesting.
9. Does a wonderful job of defining terms while smoothly immersing them in the narrative: deficit, debt, gross domestic product (GDP), etc...
10. A quick history of the federal budget in six pieces.
11. A look at Social Security, Medicare and Medicaid. Eye-opening stuff.
12. Presidential fiscal promises/policies that impacted the federal budget. A look book at the most recent administrations.
13. So how did surpluses under the Clinton administration turn into deficits? A sound explanation.
14. Debunking myths.
15. How the US federal government gets money. The share of income paid in federal taxes of all kinds by Americans at different economic levels.
16. An interesting look at the financial mess Obama inherited and what policies he has implemented.
17. A look at the three poles of the federal budgetary debate: deficit is a problem but not now while unemployment is high, deficit is problem and the solution is to shrink the government and cut taxes, and finally, the deficit is a big problem and the solution is to cut spending and raise taxes.
18. Excellent notes and bibliography.

Negatives:
1. If you are not a supporter of Keynesian economics this book will be a hard pill to swallow.
2. A glossary of terms would have added value though the author does a good job of defining terms when he first introduces it.
3. A little humor never hurts.
4. In order to keep the book to a manageable level, some topics were sacrificed.
5. The book lacks depth. Appendices could have been added to go into more depth.

In summary, this was a solid book that was able to educate the public on the federal budget in a concise and lucid manner. If you are interested in learning the basics of the US Federal Budget this is a good book to start. Wessel keeps the book interesting by focusing on key topics without burdening the readers with big numbers and esoteric terms. If you are interested in learning about how the Federal Budgetary process works without having to invest too much time and effort this is a good book, I recommend it.

Further suggestions: "The Benefit and the Burden" by Bruce Bartlett, "It's the Middle Class Stupid!" by James Carville and Stan Greenberg, "Winner Take All" by Dambisa Moyo, "End This Depression Now! by Paul Krugman, "Beyond Outrage" by Robert B. Reich, "The Republican Brain" by Chris Mooney, “Winner-Take All Politics” by Jacob S. Hacker, “Screwed the Undeclared War Against the Middle Class” by Thom Hartmann, “The Monster: How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America…” by Michael W. Hudson, “Perfectly Legal…” by David Cay Johnston, and “The Looting of America” by Les Leopold.

[Christopher · Rating 3 out of 5]

With the election concluded in Pres. Obama's favor and the media political attention focused on the so-called "fiscal cliff," this little book on the federal budget is as timely as it is informative. Mr. Wessel, who previously wrote about the Federal Reserves' actions to ward of the Great Recession in In FED We Trust: Ben Bernanke's War on the Great Panic, writes a book aimed at enlightening the general populace on that byzantine product Congress has to produce every year and has lasting consequences well beyond the fiscal year it is enacted: the federal budget. For the political junkie, there won't be too much in here that they don't already know: Medicare, Medicaid, and Social Security spending are the biggest drivers of future debt projections; the bloated Defense budget is larger than the next 17 countries defense budgets combined; and public perception on federal spending on certain items such as foreign aid are larger than they actually are. But, this is aimed more at people who know next to nothing about the budget and this book, with it's relatively clear prose and short length, will do the trick. Still, I found some topics Mr. Wessel wrote about to be incomprehensible and I think the book would have benefitted if he had spent some more time explaining certain things. But as a starting point for understanding the budget and our unending political debate on the federal debt & deficit, this is as good as any.

[Bethany · Rating 5 out of 5]

Christina Romer said it best on the back of this book - "I wish every voter would read this book. It spells out in a clear, nonpartisan way the realities of the deficit...The message is painful, but the book is not." Somewhere in the past, maybe my generation or my parents, we as a country lost our sense of community. We no longer care about our neighbors. We no longer volunteer to help others without an ulterior motive (boost our resumes, get a scholarship or board position, look better at the PTO events...) I think this is what is wrong with the world. I think every serious issue we, as a country, are currently facing can be tied to the fact that we are no longer a community. There are a lot of statistics in this book, and I think the most sobering is that there is $90,000 of federal debt for every household in America. It was only $54,000 prior to the Great Recession. Whether we want to admit it or not, we are responsible for that. We need to get our priorities in line, make some hard decisions, and get on with it. I don't agree with much of the Dave Ramsey philosophy, but I think his sentiment applies here. Live like no one else today, in order to live like no one else tomorrow. Let's make America #1 again, and it's going to take a whole team - the whole community - in order to do it. If it means I get $1,000 less back in my tax refund, then I'm doing my part.

[Camille Tesch · Rating 4 out of 5]

This is a well-written, concise account of the federal budget, including key players, challenges, and politics involved. It clearly explains where federal revenues come from and where the money is spent. If you've ever wondered where your tax dollars go, this would be a good book for you to read. The federal deficit and budget are so poorly understood by the American public, but so important to our current and future economic health. Americans who care about the economic future of the country should read this book and encourage our leaders in Congress to make the difficult decisions that will put us on a sustainable fiscal path. Ignoring the problem and postponing the solutions will only make the solutions more painful and difficult to make in the future.

I worked for the Congressional Budget Office for a few years, and this book brought be back into that world. I'm grateful for the opportunity I had to work there, and be a neutral arbitrator. The more I learn about the federal budget, the more I worry about the future of our country if we're not willing to tackle the deficit. It will require significant changes to the tax code and entitlement programs including social security, Medicaid, and Medicare. It is going to require Congress to act boldly and courageously.

[Carl · Rating 3 out of 5]

A short but not at all sweet introduction to the United States debt. The book contains a history of the main events: the New Deal, Social Security, Medicare, Reagan “starve the beast”, “Read my lips, no new taxes”, the short-lived Clinton surpluses, etc.

The author has a very gloomy view of the future: We’re driving seventy miles an hour toward a cliff and there’s nothing we can do about it. The main factors are the exploding benefit programs, the aging of the population, health care, and interest payments, and most important, a non-functioning government. The Republicans do not want to raise taxes, or cut defense. The Democrats do not want to cut entitlements, but want to raise taxes and cut defense.

By simple arithmetic, so says the author, to balance the budget entitlements will have to be cut by 25% or so and taxes will have to be raised considerably. But of course this is impossible.

The way we are going, interest payments will rise until they completely swallow all revenues. No Army or Navy or Social Security or NASA or anything. But long before then, foreign investors, who own nearly half the debt will have given up on us. They will balance our budget in ways that we do not like at all.

I said the book was gloomy.

[Maanasa · Rating 5 out of 5]

If you're looking for a drama filled with turmoil, a building atmosphere of doom, some whimsy, a cast of plucky characters at odds with another and plenty of numbers, look no further than Red Ink. I recently started working in healthcare policy and the thing is that you can't really be involved in healthcare policy without getting sucked into the world of budget policy. This book gave me some much needed historical context and set out the general lay of the land while introducing me to the big players in the field. The edition of the book I have is from 2012, so it needs some updating. For instance, did the defense (and other) budget cuts from the Budget Control Act that Wessel describes in the book end up finally going into effect in 2013?! (They did).

Overall, this is a really easy-to-read introduction to budget policy for those who are just getting ready to jump into the weeds. Oh, and if anyone had told me that a book would make me really want to grab a drink and discuss budget policy with Leon Panetta and Douglas Elmendorf, I would have looked at them askance, but here we are now.

[Kathy Nealen · Rating 4 out of 5]

Great overview of the federal budget, both revenue and expenses. It tells the history of how and why we achieved budget surpluses in the 90s and then proceeded to march into the scary deficit / debt problem that we have today.


Some concerns:

1) China and Japan hold a high percentage of our Treasury bonds, I.e., they are on their way to owning us. The upside is that we are a good investment?

2) More and more baby boomers are retiring and living longer and putting a huge burden on the younger generations for our Social Security payments and medical care.

3) Apparently, in middle age, we get a great deal of hip and knee replacements that are covered by private insurance but by the time they wear out, Medicare will have to pay for the replacements.

4) Of course, no one can agree on how to solve this problem, more taxes (for whom), reduce expenses (which ones)

5) The interest on the federal debt is an ever increasing percentage of the federal budget

6) IMHO, it is morally wrong for us to make future generations pay for huge past expenditures. Some financing is ok; subjecting future generations to servitude is not

[Kent · Rating 5 out of 5]

In a successfully non-partisan way, Wessel provides keen analysis and powerful insights on the challenging budget situation facing the United States. His ultimate assessment of the budget debate is the crux of this book. The assessment is outlined in the summary chapter, the heart of which comprises the last 5 to 6 pages of the book. It is based on inputs and strategy discussions of the most informed and engaged analysts and advisers working on budgetary issues, including many of the Simpson-Bowles committee.

Reading those last few pages is sufficient to understand that if the US were to enact all of the fundamental proposals for increasing taxes being put forth today AND all of the proposals to decrease federal spending AND deeply overhaul the big three entitlement programs (i.e. medicare, medicaid and social security) it would only barely be enough to make us solvent by 2022. Unfortunately, even that strong a statement will not get the attention of our citizenry or our political leaders.

Read this before you vote!

[Patrick · Rating 5 out of 5]

The book is small in size, the print is fairly centered on the page, and its 162 pages are a very quick read. I loved the concise explanation of the history of the debt from FDR to Reagan to Bush Jr. to Obama.

The obviously advocates for doing something about the debt, saying it will cause very large problems if we kick the can down the road any further. BUT, I don't think he takes potshots at anyone or either political party. I thoroughly enjoyed this right after the election where you can't believe anything any politician says because they're just trying to posture.

It's short, clear, and motivational. The problem does lie in large part with political lines in the sand that the two major parties will not cross in order to compromise, but it equally lies with the American people wanting more government than we are willing to pay for.

I think a lot of my Goodreads friends would enjoy this, even if it's not the sort of thing you normally read. It would make you feel more informed about the political BS sloshing around in a relatively short, readable package.

[Thomas Maluck · Rating 4 out of 5]

I know the federal budget, like a massive elephant, has far more crinkles and surfaces than this relatively quick book could possibly review, but it's nonetheless a great guide to getting a handle on the beast. The beginner's guides to the federal budget's history, money in/out, presidential/congressional influences, and overview of what America really spends its money on (and who pays what kinds of taxes) were all enlightening and essential reading for me.

I greatly enjoyed Wessel's takedown of the paranoid claim that China, our leading debt purchaser, will one day just "call in the bill" and shut America down. He follows this with observing a much more credible threat: America will have to acquiesce to more of China's demands over time or else take many smaller hits.

I'm curious if any of Wessel's claims to rates of taxation among income classes in America would take on a different significance with regard to who controls the wealth in this country. I don't say this to knock the book, as it seemed largely apolitical to me, but I'd like to read more of his work.

[Crown Publishing · Rating 5 out of 5]

David Wessel, the Pulitzer-Prize-winning reporter, columnist, and bestselling author of In Fed We Trust, dissects a topic--the federal budget--that is fiercely debated today in the halls of Congress and the media, and yet is misunderstood by the American public.

In a sweeping narrative about the people and the politics behind the budget, Wessel looks at the 2011 fiscal year (which ended September 30) to see where all the money was actually spent, and why the budget process has grown wildly out of control. Through the eyes of key people--Jacob Lew, White House director of the Office of Management and Budget; Douglas Elmendorf, director of the Congressional Budget Office; Blackstone founder and former Commerce Secretary Pete Peterson; and more--Wessel gives readers an inside look at the making of our unsustainable budget.

[Justin · Rating 3 out of 5]

A concise, and easy to follow depiction on how the U.S. has sunk into the Red. The book really doesn't give any clear "cut" (pun intended) ways to get back into the black (however, a country should NEVER be in the black as that means they are not spending what they bring in). The author tries to stay middle of the road, but often starts to veer of course to the right a bit. If you're looking for a short read on why we are in debt, how the debt is made up, and some things that can be done, give it a read (library). I think most would be surprised to see what fraction of the debt is from Social security, Medicare, defense etc... If you have a thorough background of U.S. economics or finance, you might find this a tad boring at times, like I did. But, like I said it's short, so give it a whirl.