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Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense
The bestselling author of Perfectly Legal returns with a powerful new exposé.
How does a strong and growing economy lend itself to job uncertainty, debt, bankruptcy, and economic fear for a vast number of Americans? Free Lunch provides answers to this great economic mystery of our time, revealing how today’s government policies and spending reach deep into the wallets of the many for the benefit of the wealthy few.
Johnston cuts through the official version of events and shows how, under the guise of deregulation, a whole new set of regulations quietly went into effect—regulations that thwart competition, depress wages, and reward misconduct. From how George W. Bush got rich off a tax increase to a $100 million taxpayer gift to Warren Buffett, Johnston puts a face on all of the dirty little tricks that business and government pull. A lot of people appear to be getting free lunches—but of course there’s no such thing as a free lunch, and someone (you, the taxpayer) is picking up the bill.
Johnston’s many revelations include:
• How we ended up with the most expensive yet inefficient health-care system in the world.
• How homeowners? title insurance became a costly, deceitful, yet almost invisible oligopoly.
• How our government gives hidden subsidies for posh golf courses.
• How Paris Hilton’s grandfather schemed to retake the family fortune from a charity for poor children.
• How the Yankees and Mets owners will collect more than $1.3 billion in public funds.
In these instances and many more, Free Lunch shows how the lobbyists and lawyers representing the most powerful 0.1 percent of Americans manipulated our government at the expense of the other 99.9 percent.
With his extraordinary reporting, vivid stories, and sharp analysis, Johnston reveals the forces that shape our everyday economic lives—and shows us how we can finally make things better.
How does a strong and growing economy lend itself to job uncertainty, debt, bankruptcy, and economic fear for a vast number of Americans? Free Lunch provides answers to this great economic mystery of our time, revealing how today’s government policies and spending reach deep into the wallets of the many for the benefit of the wealthy few.
Johnston cuts through the official version of events and shows how, under the guise of deregulation, a whole new set of regulations quietly went into effect—regulations that thwart competition, depress wages, and reward misconduct. From how George W. Bush got rich off a tax increase to a $100 million taxpayer gift to Warren Buffett, Johnston puts a face on all of the dirty little tricks that business and government pull. A lot of people appear to be getting free lunches—but of course there’s no such thing as a free lunch, and someone (you, the taxpayer) is picking up the bill.
Johnston’s many revelations include:
• How we ended up with the most expensive yet inefficient health-care system in the world.
• How homeowners? title insurance became a costly, deceitful, yet almost invisible oligopoly.
• How our government gives hidden subsidies for posh golf courses.
• How Paris Hilton’s grandfather schemed to retake the family fortune from a charity for poor children.
• How the Yankees and Mets owners will collect more than $1.3 billion in public funds.
In these instances and many more, Free Lunch shows how the lobbyists and lawyers representing the most powerful 0.1 percent of Americans manipulated our government at the expense of the other 99.9 percent.
With his extraordinary reporting, vivid stories, and sharp analysis, Johnston reveals the forces that shape our everyday economic lives—and shows us how we can finally make things better.
352 pages, Hardcover
First published January 1, 2007
About the author
David Cay Johnston
16 books197 followersDavid Cay Boyle Johnston (born December 24, 1948) is an American investigative journalist and author, a specialist in economics and tax issues, and winner of the 2001 Pulitzer Prize for Beat Reporting.
From 2009 to 2016 he was a Distinguished Visiting Lecturer who taught the tax, property, and regulatory law of the ancient world at Syracuse University College of Law and the Whitman School of Management. From July 2011 until September 2012 he was a columnist for Reuters, writing, and producing video commentaries, on worldwide issues of tax, accounting, economics, public finance and business. Johnston is the board president of Investigative Reporters and Editors. He has also written for Al Jazeera English and America in recent years.
From 2009 to 2016 he was a Distinguished Visiting Lecturer who taught the tax, property, and regulatory law of the ancient world at Syracuse University College of Law and the Whitman School of Management. From July 2011 until September 2012 he was a columnist for Reuters, writing, and producing video commentaries, on worldwide issues of tax, accounting, economics, public finance and business. Johnston is the board president of Investigative Reporters and Editors. He has also written for Al Jazeera English and America in recent years.
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November 22, 2015
Pulitzer Prize winner David Cay Johnston goes into real detail about how the wealthy are ripping us all off. He examines a host of issues and connects dots.
David Cay Johnson - image from Wisconsin Public Radio
Johnston does his best to raise your blood to a boiling point, going into real detail about how the wealthy are ripping us all off. He examines a host of issues and connects dots,
offering many examples of how public money is filling the pockets of private enterprises with minimal benefit to the people footing the bill, from a ritzy golf course for the well-heeled in Bandon, Oregon, to the implementation of Byzantine rules that make AMTRAK responsible for the mismanagement of rail lines it does not own, to tax policies that encourage companies to send jobs overseas, to the use by governments of eminent domain to take property from some to give it, not to the town, or state, but to other private interests, the increasing public subsidization of religion, the impact of home security alarm systems on law enforcement, the ripoff that is title insurance, the reduction in public investment in education, while increasing tax breaks for millionaires, how Enron created a managed electricity market in Texas and looted millions from the public while hiding behind government regulatory cronies… the list goes on, and on and on.
There are some bright spots in this record. Johnston writes about one lobbying firm that works to challenge some of the rampant giveaways bestowed on business. He tells of representatives from Consumers Union and Public Citizen who fight the good fight whenever opportunity allows.
But if you are not completely enraged by the time you finish this book, you must be one of the evildoers.
P 114
Thus does Caesar render that which is his onto the faithful, tearing down a wall that Thomas Jefferson thought crucial to the liberty of the people. “History, I believe, furnishes no example of a priest-ridden people maintaining a free civil government.”
Posted Originally in November 2008
Re-posted 11/13/15
=============================EXTRA STUFF
Links to Jonson's Twitter and FB pages.
Johnson has his own site, but it looks like nothing more than a promo for one of his books.
Interview with Bill Moyers
Some nice opinion pieces by Johnson on Al Jazeera America
David Cay Johnson - image from Wisconsin Public Radio
Johnston does his best to raise your blood to a boiling point, going into real detail about how the wealthy are ripping us all off. He examines a host of issues and connects dots,
offering many examples of how public money is filling the pockets of private enterprises with minimal benefit to the people footing the bill, from a ritzy golf course for the well-heeled in Bandon, Oregon, to the implementation of Byzantine rules that make AMTRAK responsible for the mismanagement of rail lines it does not own, to tax policies that encourage companies to send jobs overseas, to the use by governments of eminent domain to take property from some to give it, not to the town, or state, but to other private interests, the increasing public subsidization of religion, the impact of home security alarm systems on law enforcement, the ripoff that is title insurance, the reduction in public investment in education, while increasing tax breaks for millionaires, how Enron created a managed electricity market in Texas and looted millions from the public while hiding behind government regulatory cronies… the list goes on, and on and on.
There are some bright spots in this record. Johnston writes about one lobbying firm that works to challenge some of the rampant giveaways bestowed on business. He tells of representatives from Consumers Union and Public Citizen who fight the good fight whenever opportunity allows.
But if you are not completely enraged by the time you finish this book, you must be one of the evildoers.
P 114
Thus does Caesar render that which is his onto the faithful, tearing down a wall that Thomas Jefferson thought crucial to the liberty of the people. “History, I believe, furnishes no example of a priest-ridden people maintaining a free civil government.”
Posted Originally in November 2008
Re-posted 11/13/15
=============================EXTRA STUFF
Links to Jonson's Twitter and FB pages.
Johnson has his own site, but it looks like nothing more than a promo for one of his books.
Interview with Bill Moyers
Some nice opinion pieces by Johnson on Al Jazeera America
July 6, 2008
I knew it would make me mad to read this book.
And I was right. But, I suppose that's a good thing.
Reading this book is designed to make you mad, to want to do something about the 'pigs at the trough' as Ariana Huffington calls them; no, not the welfare mothers with their $241/mo checks. Heck, that's small potatoes.
I'm talking about major corporate welfare here; the subsidization of millionaires and billionaires. Sounds absurd, doesn't it? Especially when you see it in black and white. I mean, what would these people need with government money when they have piles of money of their own?
What, indeed?
And yet they take it. By the handfuls, the bagfuls, the truckloads. The cataloging is precise, the figures unambiguous. Real wages for 90% of Americans have been declining over the last 30 years while corporate profits are through the roof. I was told, by one kind, compassion gentleman that, 'This is the new way, get used to it.' Of course, he was one of those corporate pirates, so should I be shocked by his flagrancy?
No one else seems to be. They shrug, and buy another IPod, or watch more reality TV.
Do I sound bitter? You bet. As a single parent, with one income, I struggle for every penny. I buy books for a quarter, not just because I love books so much but because economically - for me - that makes sense. I use the library (free) a lot, too. And I'm not saying it isn't the environmentally sensitive choice, either. I just resent being put into a forced position by someone else's rampant greed.
Did you know in this index there is no mention of philanthropy? Say what you will about the robber barons of old, but Carnegie left several endowments, trusts and libraries. Today's uber-rich spend it on themselves. Why? Because no one is telling them their greed is a bad thing; quite the contrary. We're being told their greed is a good thing because it keeps the economy afloat.
Now, you know you're screwed when you're relying on greedy rich people to keep you afloat...but I digress.
The book is a bit dry in parts, as to be expected. And the rambling, introductory anecdote about the golf course lost me and I almost gave up on the book (I can't stand golf or golf courses...I'm way too liberal and yep, see that land as future low-income housing! :P lol), but I hung in there.
It did pay off, though, in a moral sense, not just a statistical one. It pretty much put the 'no-regulation-needed' meme on permanent debunk. These guys are not more moral than most people; it's not hard work (or, if you insist *just hard work*) that got them where they are - a lot of it was bending or breaking rules, family connections, prior wealth as capital...a whole host of mitigating factors. And, not for nothing, raiding the government coffers for whatever they could get - and they usually could get quite a lot, depending on who was in power.
Sadly, the last chapter, entitled "What to do" is only 17 pages long. 17-freaking-pages. I think that says it all, don't you? The guy spent 282 pages detailing the abuses, the worst examples of greed (not even everything) and the the solution is a meager 17 pages long. But it can be boiled down to one phrase: "Watch these guys, don't trust them as far as you can throw them, and regulate, regulate, regulate."
Of course, we knew that already.
And I was right. But, I suppose that's a good thing.
Reading this book is designed to make you mad, to want to do something about the 'pigs at the trough' as Ariana Huffington calls them; no, not the welfare mothers with their $241/mo checks. Heck, that's small potatoes.
I'm talking about major corporate welfare here; the subsidization of millionaires and billionaires. Sounds absurd, doesn't it? Especially when you see it in black and white. I mean, what would these people need with government money when they have piles of money of their own?
What, indeed?
And yet they take it. By the handfuls, the bagfuls, the truckloads. The cataloging is precise, the figures unambiguous. Real wages for 90% of Americans have been declining over the last 30 years while corporate profits are through the roof. I was told, by one kind, compassion gentleman that, 'This is the new way, get used to it.' Of course, he was one of those corporate pirates, so should I be shocked by his flagrancy?
No one else seems to be. They shrug, and buy another IPod, or watch more reality TV.
Do I sound bitter? You bet. As a single parent, with one income, I struggle for every penny. I buy books for a quarter, not just because I love books so much but because economically - for me - that makes sense. I use the library (free) a lot, too. And I'm not saying it isn't the environmentally sensitive choice, either. I just resent being put into a forced position by someone else's rampant greed.
Did you know in this index there is no mention of philanthropy? Say what you will about the robber barons of old, but Carnegie left several endowments, trusts and libraries. Today's uber-rich spend it on themselves. Why? Because no one is telling them their greed is a bad thing; quite the contrary. We're being told their greed is a good thing because it keeps the economy afloat.
Now, you know you're screwed when you're relying on greedy rich people to keep you afloat...but I digress.
The book is a bit dry in parts, as to be expected. And the rambling, introductory anecdote about the golf course lost me and I almost gave up on the book (I can't stand golf or golf courses...I'm way too liberal and yep, see that land as future low-income housing! :P lol), but I hung in there.
It did pay off, though, in a moral sense, not just a statistical one. It pretty much put the 'no-regulation-needed' meme on permanent debunk. These guys are not more moral than most people; it's not hard work (or, if you insist *just hard work*) that got them where they are - a lot of it was bending or breaking rules, family connections, prior wealth as capital...a whole host of mitigating factors. And, not for nothing, raiding the government coffers for whatever they could get - and they usually could get quite a lot, depending on who was in power.
Sadly, the last chapter, entitled "What to do" is only 17 pages long. 17-freaking-pages. I think that says it all, don't you? The guy spent 282 pages detailing the abuses, the worst examples of greed (not even everything) and the the solution is a meager 17 pages long. But it can be boiled down to one phrase: "Watch these guys, don't trust them as far as you can throw them, and regulate, regulate, regulate."
Of course, we knew that already.
October 4, 2014
Reading this book made it very clear to me that this is not the America I grew up in. It's also not the America our Founders were supposed to have created. What I was taught and what is true are two entirely different things, and what I was taught is not the way the world works.
Everything is turned on its ear. Every right we seem to have according to our Constitution is denied until it's ruled to be our right by the Supreme Court. Laws, rules, policies and procedures that violate our rights are not changed or removed until they are ruled unconstitutional. Too many law makers are not statesmen, and they no longer represent their constituents or the good of the country. They represent themselves and their personal interests.
Corporations and rich people are the real collectors of government welfare. When are we going to stop paying the corporations so we can pay them more when we buy their products and lose more when they lay us off from their jobs?
I fear our society is headed for a major breakdown and possible anarchy if the people's concerns and needs are not adequately and equitably met. The corporations get to break the law, bend the rules or use its loopholes, and we suffer for it. When will we reach the point that we've had enough, and we're not going to take it anymore?
The only people who get true justice are those who can afford it. If you're a regular person and you are wronged in a civil matter, you're screwed unless you can afford a good lawyer.
Everything is turned on its ear. Every right we seem to have according to our Constitution is denied until it's ruled to be our right by the Supreme Court. Laws, rules, policies and procedures that violate our rights are not changed or removed until they are ruled unconstitutional. Too many law makers are not statesmen, and they no longer represent their constituents or the good of the country. They represent themselves and their personal interests.
Corporations and rich people are the real collectors of government welfare. When are we going to stop paying the corporations so we can pay them more when we buy their products and lose more when they lay us off from their jobs?
I fear our society is headed for a major breakdown and possible anarchy if the people's concerns and needs are not adequately and equitably met. The corporations get to break the law, bend the rules or use its loopholes, and we suffer for it. When will we reach the point that we've had enough, and we're not going to take it anymore?
The only people who get true justice are those who can afford it. If you're a regular person and you are wronged in a civil matter, you're screwed unless you can afford a good lawyer.
January 23, 2009
This is a great book, but I wouldn't recommend it unless you want a healthy dose of cynicism added to your literary diet. Every single one of the examples Johnston discusses makes you realize that the "haves" in our society often do not get ahead by being better capitalists, but rather by being masters of manipulating our (taxpayer) money. I think the most positive message this book has to offer is that opponents of free trade and capitalism as a system are often completely groundless in their attacks; it's not pure capitalism that leads to inequality and ridiculously large gaps between the rich and poor, it's the perversion of capitalism by those with extreme wealth. The author's liberal use of Adam Smith's own words and writings bring this point home several times. Most of the abuses we face today (e.g., corporate subsidies) all existed in Smith's day, albeit on a much smaller scale. Although the stories Johnston shares are infuriating in the extreme, the unfairness and corruption he uncovers serves as a meaningful call to action for every taxpayer (and voter) in our country. Definitely worth handing out to all of your conservative and liberal friends.
March 17, 2008
Johnston packs a lot of eye-opening data into this book, taking on major league sports, eminent domain abuse, health care, the laws touted to taxpayers as “deregulation”, and more. He calls upon both Adam Smith and the Bible to damn both Democrats and Republicans that have forsaken their duty to the people. There are many surprises— for instance, I had no idea that baseball was exempt from antitrust law and that big-league sports were not, overall, profitable without subsidies and tax breaks.
I had thought that I had accumulated enough cynicism in the past 8 years that I was pretty much tapped out on moral outrage, but this book managed to blow oxygen on the few embers I have left. This book makes it abundantly clear that for all the talk in Washington of the glories of the free market, we have nothing resembling one here in the United States.
I had thought that I had accumulated enough cynicism in the past 8 years that I was pretty much tapped out on moral outrage, but this book managed to blow oxygen on the few embers I have left. This book makes it abundantly clear that for all the talk in Washington of the glories of the free market, we have nothing resembling one here in the United States.
August 24, 2008
I learned how riled up a book can make me. When I saw how special interests and deregulation have increasingly pulled money away from the taxpayers with the theme of "letting the markets work" I was appalled. The book reminded me of "Freakonomics" as it paired unlikely cause/effect relationships, e.g. the home security industry as a major cause of increasing gang activity. The health care section was very informative as well. Johnston includes many easy first steps we could take to start us toward equitable fiscal policies that halt or at least retard this favored treatment of the wealthy. Reagan/Bush fans may not enjoy this book, but Democrats are not innocent either.
March 27, 2008
Pretty depressing. I mean I knew that there were a small handful of people getting rich at the public trough but it's disheartening to see facts and figures laid out for all to see. Makes you wonder how they get away with it until realize that folks with that much money and power don't answer to the same laws as you and I do. A few grains of salt are suggested as it's clear that the author has a bit of an axe to grind but if even half of what he alleges is true, I'd turn the grindstone for him.
June 6, 2012
NYT investigative journalist David Cay Johnston explores how complex government rules and subsidies for business skew market forces despite free market rhetoric of many CEOs and politicians. The subtitle is "How the Wealthiest Americans Enrich Themselves at Government Expense and Stick You With the Bill," indicating its obvious bias. Interestingly, he uses free market arguments to reach "liberal economic policy" ends (e.g. less globalization, more regulations).
While I don't endorse all Johnston's arguments - some are half-baked and one-sided (e.g. always assumes that taxes paid to governments are generally well-spent is a good thing, and ignores the democratization of public company profit sharing) - I think he does raise interesting questions worthy of contemplation and discussion about the following topics:
Issues Covered & Arguments Explored
* Effects of competition by Local Government for Businesses
o Big tax breaks while budgets for schools, etc are tightened
o Subsidies for some business while more local businesses suffer
o Ex. Bass Pro, Elite Golf Courses, etc
* Sports Industry
o Stadiums subsidized by people (many who don't benefit from local sports team) while team's investors profit (George Bush)
o Governments also exercising emminent domain to seize land for stadiums at less than market prices
o Tax and anti-competitive exemption for MLB and other leagues
o Claim: Commercial sports are not profitable on their own
* Widening Income Gap and Burden of new tax policy falling to middle class
* International Trade
o Lax oversight for selling companies to China that are matters of national security
o U.S. tax deduction for each dollar of corporate tax paid to foreign governments, while the taxes in foreign countries (especially China) often directly benefit the performance of the company (e.g. better roads, ports near manufacturing plant) rather than benefiting Americans
o Off-shore profits that stay off shores aren't taxed.
o Costs of outsourcing absorbed by tax payers while companies and executive receive most of the benefits of profits (especially true with private cos)
* Railroads (CSX)
o Safety is costly. Business profit has been made by relaxing safety procedures, pushing risks to unknowing riders while companies enjoy better profits
o Government regulators under-funded
o CSX had Amtrak (government run) pay court-decided penalties for negligence
* Hedge Funds
o Most of the wealthiest individuals are hedge fund managers, who distribute a large share of their investment risks to all of society (read, mortgage meltdown)
o Industry is generally unregulated
While I don't endorse all Johnston's arguments - some are half-baked and one-sided (e.g. always assumes that taxes paid to governments are generally well-spent is a good thing, and ignores the democratization of public company profit sharing) - I think he does raise interesting questions worthy of contemplation and discussion about the following topics:
Issues Covered & Arguments Explored
* Effects of competition by Local Government for Businesses
o Big tax breaks while budgets for schools, etc are tightened
o Subsidies for some business while more local businesses suffer
o Ex. Bass Pro, Elite Golf Courses, etc
* Sports Industry
o Stadiums subsidized by people (many who don't benefit from local sports team) while team's investors profit (George Bush)
o Governments also exercising emminent domain to seize land for stadiums at less than market prices
o Tax and anti-competitive exemption for MLB and other leagues
o Claim: Commercial sports are not profitable on their own
* Widening Income Gap and Burden of new tax policy falling to middle class
* International Trade
o Lax oversight for selling companies to China that are matters of national security
o U.S. tax deduction for each dollar of corporate tax paid to foreign governments, while the taxes in foreign countries (especially China) often directly benefit the performance of the company (e.g. better roads, ports near manufacturing plant) rather than benefiting Americans
o Off-shore profits that stay off shores aren't taxed.
o Costs of outsourcing absorbed by tax payers while companies and executive receive most of the benefits of profits (especially true with private cos)
* Railroads (CSX)
o Safety is costly. Business profit has been made by relaxing safety procedures, pushing risks to unknowing riders while companies enjoy better profits
o Government regulators under-funded
o CSX had Amtrak (government run) pay court-decided penalties for negligence
* Hedge Funds
o Most of the wealthiest individuals are hedge fund managers, who distribute a large share of their investment risks to all of society (read, mortgage meltdown)
o Industry is generally unregulated
January 20, 2018
This book is guaranteed to make you angry, and this was published in 2007, well before the age of Trump (which is another angry denominator..)
From tax 'gifts' given to companies such as the Walmarts and the Cabelas in exchange for building in communities, to the gift of eminent domain used to further connected companies (for example sports teams), Mr. Johnston lays it all out. Some of it is reading that is complex, but each chapter begins with a story. Industries studied are healthcare, homeowners title insurance, golf courses (Hey, President Trump!), and more.
As a taxpayer, this book can more than make its case for government overhaul.
From tax 'gifts' given to companies such as the Walmarts and the Cabelas in exchange for building in communities, to the gift of eminent domain used to further connected companies (for example sports teams), Mr. Johnston lays it all out. Some of it is reading that is complex, but each chapter begins with a story. Industries studied are healthcare, homeowners title insurance, golf courses (Hey, President Trump!), and more.
As a taxpayer, this book can more than make its case for government overhaul.
February 4, 2013
Free Lunch, written by David Cay Johnson, is a New York Times best seller. This book talks about how the wealthiest of Americans enrich themselves with much money and benefits and leave us paying for their expenses.
The book goes and comments on the many occurrences of safety issues, ranging from the accidental derailment of an Amtrak train, owned by the CSX, to the transformation of a park into a stadium, wrought with gangs, unseen to the public eye. David brings up points that many people of the public probably never knew about those who are wealthy.
This book indulged me and shocked me. I always wondered why the rich always had benefits that we never had; like taxes, and other necessities. I wondered why we had to work harder in order to make half as much as they do in an hour. It turns out that they have a lot of benefits that actually make it harder for us to make it up to their level. They subtract things from us for the benefit of making more money for themselves. I didn't know that they didn't have workers of the CSX check the safety until I read this. Don't worry, they probably do it now, because of things spoken about in the book.
This book certainly doesn't beat around the bush. I recommend this to anyone curious about how politics work, or if they just want something to be surprised about to the point where you start to think differently about things in America. Seriously, this will enlighten you.
The book goes and comments on the many occurrences of safety issues, ranging from the accidental derailment of an Amtrak train, owned by the CSX, to the transformation of a park into a stadium, wrought with gangs, unseen to the public eye. David brings up points that many people of the public probably never knew about those who are wealthy.
This book indulged me and shocked me. I always wondered why the rich always had benefits that we never had; like taxes, and other necessities. I wondered why we had to work harder in order to make half as much as they do in an hour. It turns out that they have a lot of benefits that actually make it harder for us to make it up to their level. They subtract things from us for the benefit of making more money for themselves. I didn't know that they didn't have workers of the CSX check the safety until I read this. Don't worry, they probably do it now, because of things spoken about in the book.
This book certainly doesn't beat around the bush. I recommend this to anyone curious about how politics work, or if they just want something to be surprised about to the point where you start to think differently about things in America. Seriously, this will enlighten you.
March 27, 2008
If you’re concerned about congressional earmarks, stock options (especially backdated options), hedge fund tax breaks, abuse of eminent domain, subsidies to sports teams, K Street lobbyists, the state of our health-care system, to say nothing of the cavernous gap between rich and poor, you’ll read this with a growing sense of anger. Free Lunch makes it clear that it’s high time for the ordinary citizens to stand up and be counted.
March 29, 2009
In this new era of corporate bailouts and stimulus packages, it's funny to watch some of our elected officials pontificate about the evils of "socialism," seeing as these same officials have spent the last thirty years building a corporate welfare state. David Johnston shows how the working and middle classes have been compelled to further enrich (through taxes, eminent domain seizures, and judicial fiat) the already wealthy.
I suppose I already knew about (or at least suspected) quite a bit of this regressive redistribution. Most communities have had experience of their elected officials giving tax breaks and other subsidies to "big box" stores so these can move in and kill off downtown business districts. The Supreme Court has ruled that government can seize private property under eminent domain and turn it over to another private entity. Professional sports franchises browbeat local authorities into subsidizing the building of deluxe stadiums.
This is one of those books you read if you want to get angry and outraged. Johnston provides example after example of the wealthy and powerful, with government's collusion, taking whatever they want and stepping on the people under them. He shows how these abuses are perpetuated by a cycle of wealthy people donating to political campaigns and elected officials skewing the system in favor of those wealthy people. As the author points out, this all goes against the ideas set forth by Adam Smith or Judeo-Christian ethics. The irony is that many of these same elected officials and scions of wealth love to cite Smith or Jesus as examples of how we should run society.
I do have a big problem with this book. Johnston indicates that this collusion between government and the wealthy is a systemic problem. Yet, he fails to deal with it in any sort of systemic fashion. This book is a loosely linked series of articles, light on in-depth analysis or policy prescriptions. Having my brain's outrage center poked repeatedly tended to make me a little numb.
I suppose I already knew about (or at least suspected) quite a bit of this regressive redistribution. Most communities have had experience of their elected officials giving tax breaks and other subsidies to "big box" stores so these can move in and kill off downtown business districts. The Supreme Court has ruled that government can seize private property under eminent domain and turn it over to another private entity. Professional sports franchises browbeat local authorities into subsidizing the building of deluxe stadiums.
This is one of those books you read if you want to get angry and outraged. Johnston provides example after example of the wealthy and powerful, with government's collusion, taking whatever they want and stepping on the people under them. He shows how these abuses are perpetuated by a cycle of wealthy people donating to political campaigns and elected officials skewing the system in favor of those wealthy people. As the author points out, this all goes against the ideas set forth by Adam Smith or Judeo-Christian ethics. The irony is that many of these same elected officials and scions of wealth love to cite Smith or Jesus as examples of how we should run society.
I do have a big problem with this book. Johnston indicates that this collusion between government and the wealthy is a systemic problem. Yet, he fails to deal with it in any sort of systemic fashion. This book is a loosely linked series of articles, light on in-depth analysis or policy prescriptions. Having my brain's outrage center poked repeatedly tended to make me a little numb.
January 3, 2009
Wow! I know the few extremely wealthy American's take advantage of the system, but I did not know how much. This book reveals a lot even for a cynic like me. Check out the information on Obama's friend Warren Buffett.
Anyway, it still appalls me how people turn their noses down on a mom getting food stamps while they seem to have no interest or dismay in the wealthfare in this country.
The wealthy use all the infrastructure in this country, take advantage of every loophole and then get downright dishonest in the perks they get for their lobbying.
It's also very interesting the connections this book makes to how these wealthy ripoffs threaten our national security and our whole way of life.
We are just starting to see it with this economy, but so much is covered up. Still a lot of people won't open their eyes.
Our public spaces, parks, military, schools, etc keep being turned over to these private individuals and companies in the name of capitalism, when many of these are just crooks looking to rip off the public and eat their free lunch.
It's a shame. America wake up!
Anyway, it still appalls me how people turn their noses down on a mom getting food stamps while they seem to have no interest or dismay in the wealthfare in this country.
The wealthy use all the infrastructure in this country, take advantage of every loophole and then get downright dishonest in the perks they get for their lobbying.
It's also very interesting the connections this book makes to how these wealthy ripoffs threaten our national security and our whole way of life.
We are just starting to see it with this economy, but so much is covered up. Still a lot of people won't open their eyes.
Our public spaces, parks, military, schools, etc keep being turned over to these private individuals and companies in the name of capitalism, when many of these are just crooks looking to rip off the public and eat their free lunch.
It's a shame. America wake up!
January 1, 2016
Free Lunch is a book that would be excellent in a class on how to manipulate the government, but as a book to be read at leisure it is between good and OK. For me and maybe other at leisure readers it could have been shorter. I did not read the last seventy pages. Its like the writer had all these examples and wanted to make sure he got every one in. After you get the jist of the book the rest becomes pretty predictable. The bad or greedy guy always win. I rented this book from the library and rechecked it out several times. If you are going to read this book you should buy it and read it at your own pace or if you are thinking of a "Free Lunch" of your own.
The cases are interested but even though I am probably considered an American Liberal you are not going to feel the same way about every case.
If you are searching for your next captivating read visit my website, http://shamont97.wix.com/literaryworks. I am an author looking for an audience.
The cases are interested but even though I am probably considered an American Liberal you are not going to feel the same way about every case.
If you are searching for your next captivating read visit my website, http://shamont97.wix.com/literaryworks. I am an author looking for an audience.
March 19, 2008
Devastating-- even more so than Shock Doctrine.
The number are clear. Change in average incomes over last 30 years:
Vast majority (270 million): 3% less (from $29,968 in 1975 to $29,143 in 2005)
The Rich (3 million): 209% increase ($359,501 to $752,058)
Superrich (30,000): 650% ($3,430,164 to $22,296,801)
In the end, the controlling party in government is Greenbacks. We are now in the midst of a new Robber Baron age -- approaching the same wage inequities seen before the Great Depression. Our economy now more closely resembles Russia or Brazil-- rather than any of the EU or Japan.
Johnston deftly wields facts and turns of phrase-- demonstrating both his depth of inquiry and his sense of outrage at what he finds. The final chapter on "What to Do?" is resounding call to return to our founding principles, rallying us all to be empowered by the plain truth.
The number are clear. Change in average incomes over last 30 years:
Vast majority (270 million): 3% less (from $29,968 in 1975 to $29,143 in 2005)
The Rich (3 million): 209% increase ($359,501 to $752,058)
Superrich (30,000): 650% ($3,430,164 to $22,296,801)
In the end, the controlling party in government is Greenbacks. We are now in the midst of a new Robber Baron age -- approaching the same wage inequities seen before the Great Depression. Our economy now more closely resembles Russia or Brazil-- rather than any of the EU or Japan.
Johnston deftly wields facts and turns of phrase-- demonstrating both his depth of inquiry and his sense of outrage at what he finds. The final chapter on "What to Do?" is resounding call to return to our founding principles, rallying us all to be empowered by the plain truth.
March 29, 2008
What do George W Bush and Walmart have in common?
Quite a few things: I've never had any direct contact with either one [I said, sanctimoniously]; they're a scourge on our country [you already knew that]; Johnson's answer: they've received millions and millions in government subsidies as they do business. Johnston investigates the health care industry, a destination golf course here in Oregon, sporting goods stores, Enron, the home alarm industry--the list goes on--and exposes how often politicians and entrepreneurs who advocate free markets and low taxes have received huge subsidies, putting competitors out of business and taking property and wealth from those who have less.
This is an informative and infuriating read. Johnston clearly enjoys telling elaborate stories. Sometimes his narrative style is too slow and lavish for me and i found myself skipping ahead.
Quite a few things: I've never had any direct contact with either one [I said, sanctimoniously]; they're a scourge on our country [you already knew that]; Johnson's answer: they've received millions and millions in government subsidies as they do business. Johnston investigates the health care industry, a destination golf course here in Oregon, sporting goods stores, Enron, the home alarm industry--the list goes on--and exposes how often politicians and entrepreneurs who advocate free markets and low taxes have received huge subsidies, putting competitors out of business and taking property and wealth from those who have less.
This is an informative and infuriating read. Johnston clearly enjoys telling elaborate stories. Sometimes his narrative style is too slow and lavish for me and i found myself skipping ahead.
April 5, 2008
This book was hugely informative about government hand outs to big corporations. After hearing the author speak about a few chapters on NPR i was sold, and I have to say I enjoyed reading it more than I thought i would. That said my enjoyment came more out of a, dear lord I'm glad I know now those fucking wanker politicians should die, but it was still interesting. If gov stuff bores you it may still tickle your fancy since you learn about the history of things like health care in America and how baseball stadiums are being bought with your money.
December 2, 2019
This was a scathing indictment of the recent (past 30 years or so) change in the policies of the government that have lined the pockets of the rich and enabled them to become ultrarich. The author looks at the subsidies and corporate welfare that has systematically gutted the middle class. He calls the bottom 90% of the Americans, economically, the 'vast majority' - these folks have mostly been on a slide since the early 70s when the average income peaked at $33K a year...by 2005 it was just over $29K. Where did all the economic growth go? Corporate profits - and from there, to the CEOs and fat cats of the various industries. These folks, due to their enormous wealth, have access to politicians and the highest levels of government. As the author states, political power is now "wielded by a relatively narrow, and rich, segment of the population." As a result of this, the government now rigs the markets in favor of the wealthy while at the same time destroying the consumer protections that once helped the average guy. After WWII, there was an effort to strengthen the middle class - a GI bill to help finance higher education, investment in public health & research, building interstate highways, creation of consumer & environmental protections. These all helped to create an America with a strong & stable middle class. It helped to create an upper middle class of better educated professionals - the 'working wealthy' who were better off financially, but not politically influential. In the last 25 - 30 years, the government has subtly shifted the rules in favor of the rich & powerful, especially those with political connections.
The author looks at industry after industry and shows a systematic dismantling of the rules and regulations in favor of the consumer for deregulation - bastardizing subsidies into corporate welfare - dumping costs onto and siphoning profits from the taxpayer.
> The number of federal workers shrink - but the contract workers have swelled and they are hired at substantially higher costs and have less accountability.
> CSX, a railroad company, ignored basic safety standards as a cost-cutting measure. This inflated their profits, which helped the corporate executives get richer as their pay was tied to profits and share prices. Under aggressive leadership, the cost cutting mean 3 engines instead of 4 to haul loads; bridges that became eyesores after decades without painting; and switches held together with nothing but a rusty nail. Small wonder when derailments increased 28% even though there was only a 10% increase in the freight carried.
> A discussion of the economic incentives that our government gives that induce the movement of jobs overseas. The author states "...destroying American jobs and creating jobs overseas is the single most effective way for manufacturing companies to increase profits."
> How the city of New York & Mayor Guiliani gifted the Yankees & Mets $25 million EACH in public funds - what the author calls "a socialist redistribution to the richest". The Yankees used some of this money to hire a lobbyist to arrange FURTHER taxpayer subsidies for their new stadium. This is welfare for billionaires.
> How large businesses (like Cabela's) can get communities to vie for their construction and finagle tax breaks at the expense of small businesses. "The only consistent winners are the large businesses that can pit one jurisdiction against another for reduced tax burdens while other taxpayers and citizens pay the costs in constrained government services and higher taxes." Sam Walton was an ardent practitioner of corporate socialism - free land, long-term leases at below-market rates, pocketing sales taxes, workers trained at government expense were part of the package in some areas when Walmart moved in. Subsidies are particularly onerous - especially when you consider that these basically force their competitors to pay for their own demise. The existing store that sells that towel or grocery that sells the same milk but gets no subsidy, is taxed to benefit the Walmart.
> The list goes on and on...burglar alarms...title insurance...college loans...tax deductions for homes...electricity companies...healthcare...tax cheating...
We are redistributing income UP. If you're already very rich, the future is bright. The rest of us should be working to make sure that we have a government that works for all of us. Economic gain is not the purpose of government. The rich are gorging themselves at the government trough. One item that really resonated with me was the thought that we need to restore the ethos that cheating is wrong. Amen.
The author looks at industry after industry and shows a systematic dismantling of the rules and regulations in favor of the consumer for deregulation - bastardizing subsidies into corporate welfare - dumping costs onto and siphoning profits from the taxpayer.
> The number of federal workers shrink - but the contract workers have swelled and they are hired at substantially higher costs and have less accountability.
> CSX, a railroad company, ignored basic safety standards as a cost-cutting measure. This inflated their profits, which helped the corporate executives get richer as their pay was tied to profits and share prices. Under aggressive leadership, the cost cutting mean 3 engines instead of 4 to haul loads; bridges that became eyesores after decades without painting; and switches held together with nothing but a rusty nail. Small wonder when derailments increased 28% even though there was only a 10% increase in the freight carried.
> A discussion of the economic incentives that our government gives that induce the movement of jobs overseas. The author states "...destroying American jobs and creating jobs overseas is the single most effective way for manufacturing companies to increase profits."
> How the city of New York & Mayor Guiliani gifted the Yankees & Mets $25 million EACH in public funds - what the author calls "a socialist redistribution to the richest". The Yankees used some of this money to hire a lobbyist to arrange FURTHER taxpayer subsidies for their new stadium. This is welfare for billionaires.
> How large businesses (like Cabela's) can get communities to vie for their construction and finagle tax breaks at the expense of small businesses. "The only consistent winners are the large businesses that can pit one jurisdiction against another for reduced tax burdens while other taxpayers and citizens pay the costs in constrained government services and higher taxes." Sam Walton was an ardent practitioner of corporate socialism - free land, long-term leases at below-market rates, pocketing sales taxes, workers trained at government expense were part of the package in some areas when Walmart moved in. Subsidies are particularly onerous - especially when you consider that these basically force their competitors to pay for their own demise. The existing store that sells that towel or grocery that sells the same milk but gets no subsidy, is taxed to benefit the Walmart.
> The list goes on and on...burglar alarms...title insurance...college loans...tax deductions for homes...electricity companies...healthcare...tax cheating...
We are redistributing income UP. If you're already very rich, the future is bright. The rest of us should be working to make sure that we have a government that works for all of us. Economic gain is not the purpose of government. The rich are gorging themselves at the government trough. One item that really resonated with me was the thought that we need to restore the ethos that cheating is wrong. Amen.
May 27, 2011
I’m giving this book a “4” based on it’s depth of information and the clearly excellent research that the author performed.
Like many similar books, it dragged once I had gotten about a quarter of the way through it. Not because it was poorly written or because the contents were dull; these books have a style that comes close to being a diatribe after a while. How best to put it? If everything is being shouted at you eventually you lose the ability to respond to a loud voice with alacrity. On to the positives.
The book was researched and completed before the collapse of the sub-prime mortgage markets and consequent world-wide financial meltdown. Thus, some of the obvious post-collapse targets are not included but he does have some things to say about the institutions contributing to it. For example the collapse and bailout of Long-Term Capital Management: the analysis and his projections of potential trouble in the future from a similar fund problem may not be prophetic, but they are spot-on.
Unless you are someone who is directly or (strongly indirectly) a prime beneficiary of the dodges and scams (yes, some of what he reports are essentially scams) in this book, you will feel anger and outrage towards the people who grab for the money and those who hand it to them. For a country and society that claims to honor and promote “fair play”, this book shows in example after example why it is not true for many.
Of course we are only getting one side of the story in most instances, but there is enough fact and occasionally response from the “opposition” to give the reader a sense of how even-handed the author has been. While I have not read his previous book, I suspect that Mr. Johnston has a long trail of annoying those who abuse power and trust with inconvenient facts and muck-raking.
From the explosion in CEO pay to corporations and individuals who make all of their profits basically from state and/or local giveaways, he covers “Free Lunches” in many examples. Despite my statements above about the book dragging, it is constructed in a logical, clear manner leading one from one form of fleecing to the next.
If you care about issues that afflict our society and our government and its debt, this is a book you should read. There is a very clear and logical analysis of how the American system of healthcare is monetarily crazy (when compared to similar advanced societies) and how we deliver less effective care and treatment – except to those for whom money is no object. This has current bearing on the debate about our public debt and our future ability to bring the federal budget into balance. And that is something that concerns everyone who expects to be alive 5 or more years from now.
Like many similar books, it dragged once I had gotten about a quarter of the way through it. Not because it was poorly written or because the contents were dull; these books have a style that comes close to being a diatribe after a while. How best to put it? If everything is being shouted at you eventually you lose the ability to respond to a loud voice with alacrity. On to the positives.
The book was researched and completed before the collapse of the sub-prime mortgage markets and consequent world-wide financial meltdown. Thus, some of the obvious post-collapse targets are not included but he does have some things to say about the institutions contributing to it. For example the collapse and bailout of Long-Term Capital Management: the analysis and his projections of potential trouble in the future from a similar fund problem may not be prophetic, but they are spot-on.
Unless you are someone who is directly or (strongly indirectly) a prime beneficiary of the dodges and scams (yes, some of what he reports are essentially scams) in this book, you will feel anger and outrage towards the people who grab for the money and those who hand it to them. For a country and society that claims to honor and promote “fair play”, this book shows in example after example why it is not true for many.
Of course we are only getting one side of the story in most instances, but there is enough fact and occasionally response from the “opposition” to give the reader a sense of how even-handed the author has been. While I have not read his previous book, I suspect that Mr. Johnston has a long trail of annoying those who abuse power and trust with inconvenient facts and muck-raking.
From the explosion in CEO pay to corporations and individuals who make all of their profits basically from state and/or local giveaways, he covers “Free Lunches” in many examples. Despite my statements above about the book dragging, it is constructed in a logical, clear manner leading one from one form of fleecing to the next.
If you care about issues that afflict our society and our government and its debt, this is a book you should read. There is a very clear and logical analysis of how the American system of healthcare is monetarily crazy (when compared to similar advanced societies) and how we deliver less effective care and treatment – except to those for whom money is no object. This has current bearing on the debate about our public debt and our future ability to bring the federal budget into balance. And that is something that concerns everyone who expects to be alive 5 or more years from now.
January 18, 2018
A disturbing but enlightening eye-opener!
Johnston shows how the top 1 percent are utilizing the government to enrich themselves at the expense of everyone else. Johnston shows how these wealthy individuals are receiving government subsidies (Free lunches) with America’s tax dollars resulting from the buying out of politicians’ who in turn gladly hand over our tax dollars to these wealthy donors (Socialism for the rich; Capitalism for the poor). The book will definitely raise your blood level and make you realize how our political leaders are a joke. I gave the book a three due to the authors over use of the statement, “taking from the many to benefit the few”. He uses this statement two or three times per chapter, otherwise the book is superb investigative research. I recommend this book to every American who cares about the future of our country.
As Rutherford B Hayes stated, “This is a government of the people, by the people, and for the people no longer. It is a government of corporations, by corporations and for corporations.”
Johnston shows how the top 1 percent are utilizing the government to enrich themselves at the expense of everyone else. Johnston shows how these wealthy individuals are receiving government subsidies (Free lunches) with America’s tax dollars resulting from the buying out of politicians’ who in turn gladly hand over our tax dollars to these wealthy donors (Socialism for the rich; Capitalism for the poor). The book will definitely raise your blood level and make you realize how our political leaders are a joke. I gave the book a three due to the authors over use of the statement, “taking from the many to benefit the few”. He uses this statement two or three times per chapter, otherwise the book is superb investigative research. I recommend this book to every American who cares about the future of our country.
As Rutherford B Hayes stated, “This is a government of the people, by the people, and for the people no longer. It is a government of corporations, by corporations and for corporations.”
September 28, 2013
This book was written just before the credit crunch, in 2007, and impressively predicts many of the themes of the next few years, including the global financial collapse at the hands of hedge funds, the subprime mortgage debacle, and Obamacare.
In a way this almost diminishes its usefulness, as its most dire portents have already come to pass (with the exception of Obamacare, which isn't particularly dire). However, it does lend credence to the author's other points, which concern issues including energy price fixing, stadium spending and government subsidies for large stores. It's also interesting to see the mechanisms by which the credit crunch came about, and just how screwed the private healthcare system is.
It's well-written enough, and informative. As someone who knows nothing about economics I now feel I know a tiny bit about economics, even with what I imagine is the author's personal bias. It's interesting that he seems to mainly espouse a libertarian point of view, before the libertarians became hopelessly entangled with the Tea Party, but, for example, he believes in socialised health care for what seem to be very sensible reasons. One thing the author is especially good at is looking at each market on an individual basis, rather than sticking to an overarching economic principle no matter what. Sometimes a free market is good, sometimes a free market isn't.
I think this book is worth anybody reading, and would especially be useful to someone who is an activist without facts, as it will provide them with ammunition to pursue their hopeless cause. I think by now it's fairly clear to everyone that the corporates have the whole financial system and especially the US government in a vice of their own design, especially as 'corporates' now is a group that extends all the way up to Congress. I personally found it a little boring, though, again, very informative.
In a way this almost diminishes its usefulness, as its most dire portents have already come to pass (with the exception of Obamacare, which isn't particularly dire). However, it does lend credence to the author's other points, which concern issues including energy price fixing, stadium spending and government subsidies for large stores. It's also interesting to see the mechanisms by which the credit crunch came about, and just how screwed the private healthcare system is.
It's well-written enough, and informative. As someone who knows nothing about economics I now feel I know a tiny bit about economics, even with what I imagine is the author's personal bias. It's interesting that he seems to mainly espouse a libertarian point of view, before the libertarians became hopelessly entangled with the Tea Party, but, for example, he believes in socialised health care for what seem to be very sensible reasons. One thing the author is especially good at is looking at each market on an individual basis, rather than sticking to an overarching economic principle no matter what. Sometimes a free market is good, sometimes a free market isn't.
I think this book is worth anybody reading, and would especially be useful to someone who is an activist without facts, as it will provide them with ammunition to pursue their hopeless cause. I think by now it's fairly clear to everyone that the corporates have the whole financial system and especially the US government in a vice of their own design, especially as 'corporates' now is a group that extends all the way up to Congress. I personally found it a little boring, though, again, very informative.
July 3, 2009
I need some heavy doses of liver-destroying acetaminophen after reading this. This is a sampling of how the rabble that makes up the lower 90% of our population gets screwed over by big corporations and ultra-rich peeps who have, mainly during the last three decades, figured out the mechanisms to put tax dollars to work for their bank accounts. I was familiar with such aspects as subsidies to big box stores and professional sports franchises and the legalized gambling know as hedge funds. But by no means did I anticipate the sheer magnitude and obscene figures and stats attached such issues – and I’m a pretty cynical bastard at that! Additionally the stories regarding HMOs, deregulation of electrical utilities, and the home security companies tend to raise one’s neck hair. I fortunately shaved mine off before reading this, but to be quite frank – this is some fucked-up stuff!
This is quite the page-turner. As the author is a journalist, there’s some of the expected sensationalism and there’s a certain journalistic paucity of supporting notes. Nonetheless, the various figures are apparently documented and where some guesswork is involved, the author makes this clear. It’s all pretty disturbing.
I suppose I’ll no longer respond with a baffled smirk when a friend threatens to move to Canada, believing, as we’re programmed to do, that Canada is not really in the same league as the US. After reading this – as well as some others – I’ll now offer a high five, Montreal restaurant recommendations, and an synopsis of mid-century Toronto architecture as studies and stories revolving around income disparity, health care systems, and various definitions of “opportunity“ show that, indeed Canada is not in our league… Mexico and Russia are.
This is quite the page-turner. As the author is a journalist, there’s some of the expected sensationalism and there’s a certain journalistic paucity of supporting notes. Nonetheless, the various figures are apparently documented and where some guesswork is involved, the author makes this clear. It’s all pretty disturbing.
I suppose I’ll no longer respond with a baffled smirk when a friend threatens to move to Canada, believing, as we’re programmed to do, that Canada is not really in the same league as the US. After reading this – as well as some others – I’ll now offer a high five, Montreal restaurant recommendations, and an synopsis of mid-century Toronto architecture as studies and stories revolving around income disparity, health care systems, and various definitions of “opportunity“ show that, indeed Canada is not in our league… Mexico and Russia are.
January 2, 2011
I think everyone who wonders about the tax, subsidy and political systems at play in industries such as the utilities, ground transportation, retail, sports teams, hedge funds, health care, the airlines, etc., should read this book. David Cay Johnston does an extraordnary job of researching and chronicling (not without bias which he unambiguous about) a number of current cases that interrogate the distinct free pass/free lunch we extend to corporate capitalism. This, of course, at the cost to "small," local, ethical and quality-minded businesses.
Johnston's chapters build a compelling case of legislative and political cronyism and "backroom deals." I found his book largely non-partisan, although I suspect right-leaners will whine that he calls out fewer Democrats than Republicans. He calls out both parties as necessary--but more importantly he calls out a lobbying and special interest system that is self-serving to our distinct disadvantage. We are lining the pockets of the super, uber-wealthy and doing so willingly and with reverence for a mythical thing called "the American dream."
I highly recommend. The lack of a fifth star is only due to Johnston's occasionally awkward writing style, and because there are some arguments he may have more fully fleshed out rather than leaping to the declarative just a moment to soon. That said, I think this is a seminal expose' that could instigate a real shift away from worshipping at the altar of unbridled capitalism.
Johnston's chapters build a compelling case of legislative and political cronyism and "backroom deals." I found his book largely non-partisan, although I suspect right-leaners will whine that he calls out fewer Democrats than Republicans. He calls out both parties as necessary--but more importantly he calls out a lobbying and special interest system that is self-serving to our distinct disadvantage. We are lining the pockets of the super, uber-wealthy and doing so willingly and with reverence for a mythical thing called "the American dream."
I highly recommend. The lack of a fifth star is only due to Johnston's occasionally awkward writing style, and because there are some arguments he may have more fully fleshed out rather than leaping to the declarative just a moment to soon. That said, I think this is a seminal expose' that could instigate a real shift away from worshipping at the altar of unbridled capitalism.
August 21, 2012
I was hoping for more tax focus because I've read Johnston in that context and learned. I did learn some specific ways that specific businesses benefitted from government laws or regulations (Cabela's aggressively pursues subsidies to build a store near you), none of which would be all to surprising to the informed citizen. It is nice to have so many examples researched for you and put in one place and read to you by the author with a certain fun, cynical conviction that's entrancing.
However, I can't help but wish there was more tax. In fact, the best thing I learned from this book was something about income taxes and income inequality that I'd never realized fully before he explained it. He says the reported income of the wealthy is likely to be considerably under-reported. I don't remember exactly what he calls the categories of tax avoidance (legal, semi-legal, illegal?), but he says the wealthy do all three more than the rest of us. He gives a couple of convincing reasons why this is so and concludes that a significant amount of their earnings (not to mention wealth) gets excluded from the income reported to the IRS. This means when you see a statistic like "the top 1% had 19% of taxable income" the taxable means a lot of tax avoidance/tax lobbying went to help the 1% keep that number at 19%.
However, I can't help but wish there was more tax. In fact, the best thing I learned from this book was something about income taxes and income inequality that I'd never realized fully before he explained it. He says the reported income of the wealthy is likely to be considerably under-reported. I don't remember exactly what he calls the categories of tax avoidance (legal, semi-legal, illegal?), but he says the wealthy do all three more than the rest of us. He gives a couple of convincing reasons why this is so and concludes that a significant amount of their earnings (not to mention wealth) gets excluded from the income reported to the IRS. This means when you see a statistic like "the top 1% had 19% of taxable income" the taxable means a lot of tax avoidance/tax lobbying went to help the 1% keep that number at 19%.
May 19, 2015
Everyone should read this book. It explains how government is enriching the few at the expense of the many. It looks at the period from the 1980s to 2007 and shows how government subsidies, tax breaks and loopholes, deregulation have made a few rich and the rest of us poorer. The government gives more money to the richest 1% than all those on welfare. The rich also use their campaign money influence to get government to buy the land they want and then give it to them. These giveaways rob us of the tax dollars that should go to infrastructure, libraries and health care. The book is an eye-opener. The first 26 chapters show how specific corporations and the rich benefited themselves with this corporate welfare. The last chapter provides some ideas about how to return to a government that supports the middle class and not the elite rich with corporate socialism. I had thought to add various references from the book to illustrate the themes of this book, but it is far easier to urge everyone to read this book. I'd recommend this book to everyone, even though it will probably frustrate you and make you angry.
December 28, 2012
If you are looking for a read that will make you sick to your stomach - this is the one for you. This is one of those books that after you finish reading it (and even while you're reading it) you have the urge to make all of your friends read it as well. As a follow up on his excellent Perfectly Legal, Johnston goes after all sorts of corporate and fat cat giveaways that the rich and powerful take advantage of at the expense of the little guy. Many of these are well known - such as cities subsidizing sports teams' stadiums, but others are less well known - such as the deregulation of the electric utility industry. No one from George Steinbrenner to Warren Buffett is spared. Definitely a must read for any American citizen that wants to be understand how they are getting screwed on a daily basis. If you're someone that thinks those are the welfare roles are the ones costing the government all of your hard earned tax dollars, read this and realize that they are only a small slice compared to what the rich are getting.
June 17, 2008
Major thesis: most Americans are not better off how than they were 28 years ago when Ronald Reagan asked, "are you better off now than you were four years ago?" If we were willing to throw Carter out on that basis, the book argues, then we should throw out Reaganomics on the same grounds because it has not worked for the vast majority of us. In this way, Johnson hoists Reaganomics on its petard. He goes on to hoist free market fundamentalism and its alliance with Christian fundamentalism on their respective petards through constant reference to Adam Smith and the Bible. These ironies seem cheap at first, but as Johnston accumulates more and more facts about welfare for rich people, the reader will surely appreciate how the joke is on them.
Bottom line: What's great about this book is that it shows how conservatives shouldn't support some conservative policies, even by their own standards. A good gift for the conservative blowhard in your family.
Bottom line: What's great about this book is that it shows how conservatives shouldn't support some conservative policies, even by their own standards. A good gift for the conservative blowhard in your family.
January 3, 2017
A convincing brief for the prosecution of the policies that have been followed in the USA by the Republicans. It would make difficult reading for a right wing Republican as David Cay sprinkles it with liberal quotes from Adam Smith and the Bible about folly of the policies that the Republicans have adopted. The charge made out is that the rich with their Republican factotums in both the Congress and the Executive have advanced the cause of the wealthy enriching themselves in ways that have been counter to both the teachings of Adam Smith and the Bible. One is left with the impression that the policies have had less to do with the ideology of free markets than with the pure greed. One is left with the idea that free market ideology was the smoke screen for the looting and pillaging of America by the super rich. A pity Trump voters are not likely to read this.
May 5, 2009
I'm on page 50 reading about outsourcing. This book is scaring the pants off of me.
Finished it today. This is hard to get into, but gets much more compelling after the first 50 pages. The writing style is annoying, and I hate how he ends each chapter with a teaser for the next, but the information is terrific and coherent. This book will piss you off, and we should be pissed off. I don't say this often but I think this is a book that everyone who has been wondering why it's so hard to keep afloat these days needs to read. It's not that we are lazier than our parents, it's that our government has been hijacked and is no longer working in our best interests. (If you make more than $350,000 a year, then this review does not apply to you.)
Finished it today. This is hard to get into, but gets much more compelling after the first 50 pages. The writing style is annoying, and I hate how he ends each chapter with a teaser for the next, but the information is terrific and coherent. This book will piss you off, and we should be pissed off. I don't say this often but I think this is a book that everyone who has been wondering why it's so hard to keep afloat these days needs to read. It's not that we are lazier than our parents, it's that our government has been hijacked and is no longer working in our best interests. (If you make more than $350,000 a year, then this review does not apply to you.)
May 21, 2008
"Madd Michael Moore-ish. It makes you hate the government for giving so many tax breaks to the rich.. it makes you hate the rich for getting so many tax breaks from the gom'ent."
That's a person with a loser mentality would say. Winners like me say, it's time for me to get on the path to being rich so I can get these tax breaks.
It's wordy and and full of anecdotes, but you get the point that rich folk get free lunch on my tax dollar. I can't beat them so I might as well make some moves to join them.
I'm gonna buy a crazy looking suit with dollar signs all over it like the dude in the infomercials who advertises gom'ent grants.
That's a person with a loser mentality would say. Winners like me say, it's time for me to get on the path to being rich so I can get these tax breaks.
It's wordy and and full of anecdotes, but you get the point that rich folk get free lunch on my tax dollar. I can't beat them so I might as well make some moves to join them.
I'm gonna buy a crazy looking suit with dollar signs all over it like the dude in the infomercials who advertises gom'ent grants.
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