The Alleged Budget Surplus, Social Security, & Voodoo Economics

Dr. Smith's book is fresh air in this political season of rhetoric concerning the so-called budget surplus. He has done an excellent job of tracing our country's economic policies through the various administrations of both major parties and helps one to understand how we got to today's situation. I was especially struck at the fairness and even-handedness of Dr. Smith when dealing with both Democratic and Republican stances on the "surplus". He is very hard on Presidents Johnson and Reagan in creating the national debt that threatens our national economic well-being. He is also critical of both Al Gore and George W. Bush in their proposed uses of the "surplus".This book is also well written. Dr. Smith has an uncanny way of taking complicated economic principles and rewording them in a straight forward, easy-to-understand format that was refreshing to read.In summary I enthusiastically give this book the highest rating! It is a book for all open-minded persons how are willing to look beyond the rhetoric of today's politicians and seek the truth .

Dr. Allen W. Smith has written accurately and understandably about a topic that usually well informed citizens avoid. We have heard such a drumbeat of the phrase "budget surplus". What is behind the numbers? Smith rightly complains that the total of the operating budget and the social security budget should not be added together to arrive at the size of the "surplus". Social security funds are owned by the SS Trust. They are not a kitty for program expansion or tax relief. The SOCIAL SECURITY surplus comes from a tax plan that was intended to shore it up for the future. By contrast, the operating budget surplus for 1999 was real but small. Projections for the future do anticipate a rise but with dubious assumptions of long term continuous expansion. Smith reminds us of our existing debt of $5.6 trillion at the end of 1999, requiring over $353 billion to finance. He criticizes both political parties for not putting the budget numbers in context and not advocating responsible fiscal policy. Smith has written several well received books and has been interviewed by CNN and numerous radio talk shows. This book is necessary to citizen literacy on economic policy for the present and future. Review by Victor Stolzfus, Ph.D, President Emeritus, Goshen College (IN)