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The Price of Liberty: Paying for America's Wars
In a bracing work of history, a leading international finance expert reveals how our national security depends on our financial security
More than two centuries ago, America's first secretary of the treasury, Alexander Hamilton, identified the Revolutionary War debt as a threat to the nation's creditworthiness and its very existence. In response, he established financial principles for securing the country--principles that endure to this day. In this provocative history, Robert D. Hormats, one of America's leading experts on international finance, shows how leaders from Madison and Lincoln to FDR and Reagan have followed Hamilton's ideals, from the greenback and a progressive income tax to the Victory Bond and Victory Garden campaigns and cost-sharing with allies.
Drawing on these historical lessons, Hormats argues that the rampant borrowing to pay for the war in Iraq and the short-sighted tax cuts in the face of a long-term war on terrorism run counter to American tradition and place our country's security in peril. To meet the threats facing us, Hormats contends, we must significantly realign our economic policies--on taxes, Social Security, Medicare, and oil dependency--to safeguard our liberty and our future.
More than two centuries ago, America's first secretary of the treasury, Alexander Hamilton, identified the Revolutionary War debt as a threat to the nation's creditworthiness and its very existence. In response, he established financial principles for securing the country--principles that endure to this day. In this provocative history, Robert D. Hormats, one of America's leading experts on international finance, shows how leaders from Madison and Lincoln to FDR and Reagan have followed Hamilton's ideals, from the greenback and a progressive income tax to the Victory Bond and Victory Garden campaigns and cost-sharing with allies.
Drawing on these historical lessons, Hormats argues that the rampant borrowing to pay for the war in Iraq and the short-sighted tax cuts in the face of a long-term war on terrorism run counter to American tradition and place our country's security in peril. To meet the threats facing us, Hormats contends, we must significantly realign our economic policies--on taxes, Social Security, Medicare, and oil dependency--to safeguard our liberty and our future.
368 pages, Hardcover
First published January 1, 2007
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Displaying 1 - 5 of 5 reviews
June 30, 2009
A must read for anyone who wants to understand a general history of US fiscal policy and how US wars have been financed since the country's inception.
The book was written in 2007 so much of the recent data are from 2005 and 2006, before we entered our current recession. But even in that more upbeat economic environment, Hormats painted a legitimate cause for concern with our large national debt and unwillingness to make spending sacrifices. Layer in the recession and it's even worse.
In his conclusion, he also calls to attention our heavy reliance on foreign capital to finance our spending habits and the obligations on our current debt. This is something that has concerned me for a few years now, as non-traditional ally countries like China account for trillions of our debt. Those countries undoubtedly have major influences over our economy and could easily compromise our national security through our dependence on their capital.
I'm amazed how far off course we've gotten from the effective fiscal and defense financing strategies of the past and how much gloomier things will likely get as we move towards socialism on the political continuum. We just can't afford to have big government.
The book was written in 2007 so much of the recent data are from 2005 and 2006, before we entered our current recession. But even in that more upbeat economic environment, Hormats painted a legitimate cause for concern with our large national debt and unwillingness to make spending sacrifices. Layer in the recession and it's even worse.
In his conclusion, he also calls to attention our heavy reliance on foreign capital to finance our spending habits and the obligations on our current debt. This is something that has concerned me for a few years now, as non-traditional ally countries like China account for trillions of our debt. Those countries undoubtedly have major influences over our economy and could easily compromise our national security through our dependence on their capital.
I'm amazed how far off course we've gotten from the effective fiscal and defense financing strategies of the past and how much gloomier things will likely get as we move towards socialism on the political continuum. We just can't afford to have big government.
April 4, 2008
I just saw this author give a lecture with Richard Brookhiser at the New-York Historical Society, and although it was brief, the author gave an extremely cogent overview of how the U.S. paid, and is paying, for its wars. The book is engrossing and very highly recommended.
Wars are extremely expensive and destructive; it's a pity the monies spent on defense cannot be allocated elsewhere (but, I am a firm believer that defense spending is more a stimulus to the economy than simple transfer payments.) However, in the near future, pressure from other budgetary obligations will necessitate a drastic reduction in defense spending, or an extreme cut back in social spending.
I feel sorry for the baby boomers and their quickly disappearing dream of retirement.
Wars are extremely expensive and destructive; it's a pity the monies spent on defense cannot be allocated elsewhere (but, I am a firm believer that defense spending is more a stimulus to the economy than simple transfer payments.) However, in the near future, pressure from other budgetary obligations will necessitate a drastic reduction in defense spending, or an extreme cut back in social spending.
I feel sorry for the baby boomers and their quickly disappearing dream of retirement.
August 20, 2008
This was a concise, well written, easily read history of how America pays for its wars; covering the Revolutionary War to the campaigns in Iraq and Afghanistan. The most interesting lessons drawn from all this is that engaging in war is a very expensive proposition, and that paying for the conflict is usually well considered if not acrimonious process. Most wars have been funded with a combination of raising taxes and issuing war bonds, and our tax structure today is still in many respects based on the results of having to raise taxes to support World War II. The current conflict is the only war in American history with taxes being lowered.
A very interesting book, and a must read for anyone interested in public finance and policy.
A very interesting book, and a must read for anyone interested in public finance and policy.
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January 18, 2010The Price of Liberty: Paying for America's Wars by Robert D. Hormats (2007)
April 2, 2011
I'm glad I read this, but it was very technical.
Displaying 1 - 5 of 5 reviews