Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You with the Bill)

by David Cay Johnston

Book Overview

Free Lunch answers the great mystery of our time- How did our strong and growing economy give way to job uncertainty, debt, bankruptcy, and fear for millions of Americans? Acclaimed reporter David Cay... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 1591841917
• ISBN13: 9781591841913
• Release Date: December 2007
• Publisher: Portfolio
• Length: 323 Pages
• Weight: 1.24 lbs.
• Dimensions: 1.1" x 6.3" x 9.3"
• Age Range: 18 years and up
• Grade Range: Postsecondary and higher

Customer Reviews

Book

Arrived on time as described

The Other Things Adam Smith Said

One thing you can expect when you open a book by David Cay Johnston is narrative that reads like a drama unfolding except that the plot is present-day America and the story is how the wealthy are getting richer at the expense of the middle class. Hence the title "Free Lunch," where the wealthy steal it with government approval, are paid to take it, or get it free, courtesy of the same who hands the bill over to us. At the very beginning, Johnston explains what the invisible hand of Adam Smith means, for the benefit of those who know it and for those who only think they do--of which there are more than enough of the latter. Smith postulated that a free market economy creates competition that serves the common good but, (and here's the kicker), does not work if government provides them bounty (subsidies), or allows them to collude to keep prices high. He also stated that there would be enterprises that would operate to seek bounties only, the equivalent of modern corporate welfare. Johnston provides chapter after fascinating chapter of how government at all levels offers break after break which is consistently picked up by Average Joe Taxpayer. Such "bounties" include: · Misuse of eminent domain, which is supposed to mean appropriating land for the common good such as a new highway or airport. Now it is used to support developers who wish to profit at the expense of the homeowner. · Tax breaks. Not only do companies such as Wal-Mart, Cabela, or Bass Pro insist on property tax breaks that decimate the local economy rather than improve it, but they might even insist on keeping the sales tax. Communities may not see a return on their investment for decades. · Government intervention in the form of legislation that may even benefit large companies at the expense of the citizen such as "free-market" energy as espoused by Ken Lay that eventually cost Californians exorbitant charges for no additional electricity generated. · Kids who take student loans are finding out that what they thought was a loan at six percent suddenly became eighteen percent guaranteeing that they will pay far more than they borrowed for years to come, and the lender is guaranteed no risk. · Our government is also lavishing subsidies onto for-profit health care companies that consistently look for ways to deny claims. No subsidies go to nonprofit health systems even though studies show they offer superior care. (Adam Smith also said: "What improves the circumstances of the greater part can never be regarded as an inconveniency to the whole"). · The grand prize, which is our current administration in the form of George W. Bush who sponsored a drug plan for seniors that was worked on (behind closed doors) by Billy Tauzin (R), Max Baucus (D), and John Breaux (D). These "representatives of the people" guaranteed that Adam Smith's dictum of seeking the lowest possible price would be ignored. Their bill guaranteed that our government would not be allowed to negotiate the price

A deafening silence

David Cay Johnston has been writing about this topic for years. Question to all: How come no Dateline or 60 Minutes investigation hasn't exposed this ongoing scam? How come newspapers just won't harp mercilessly on the politicians about that? THAT is the real tragedy that shall cost this country its very preeminence. A non-informed citizenry is prime material for being robbed of their money and freedoms.

feeding at the public trough

How can our government be so expensive, yet so ineffective? Showing it's no accident that our political institutions too often serve the interests of the rich and powerful, Mr. Johnston "follows the money" -- the money that buys special favors, and the money that's siphoned out of our pockets to pay for them. This is an eminently readable and informative book, that deserves a large audience. But be warned -- being informed can produce outrage! Eric Alan Isaacson

Excellent Analysis

This book is an excellent analysis of corporate socialism. Johnson clarifies how profoundly industry has taken all the profits in a growing economy, taxing the citizens to do it. This a powerful political wakeup call. Highly recommended.