First published 1974
Alan Blinder tackles the fundamental tensions in government finance through four comprehensive essays. He opens by challenging the conventional wisdom that governments should balance budgets rather than economies, drawing on theoretical frameworks and empirical evidence to defend fiscal policy against monetarist critics. The analysis moves through tax incidence theory, examining how various tax burdens actually fall across society and how policymakers can use tax instruments to achieve national objectives. Blinder explores the thorny questions of public expenditure decisions, investigating how communities determine when government should act versus leaving matters to private initiative. The work concludes with an examination of revenue sharing debates and the complex relationships between federal, state, and local government responsibilities. Throughout, Blinder demonstrates how economic theory intersects with practical policy challenges, offering readers a framework for understanding the mechanics of government finance and the ongoing debates over fiscal responsibility.
Genres: political-science, economics, non-fiction, finance, public-policy, academic
Vibes: thought-provoking
Tropes: academic
451 pages · Paperback · Brookings Institution Press