Downsizing The Federal Government

The federal government is running huge budget deficits, spending too much, and heading toward a financial crisis. Federal spending soared under President George W. Bush, and the costs of programs for the elderly are set to balloon in coming years. Hurricane Katrina has made the federal budget situation even more desperate. In Downsizing the Federal Government Cato Institute budget expert Chris Edwards provides policymakers with solutions to the growing federal budget mess. Edwards identifies more than 100 federal programs that should be terminated, transferred to the states, or privatized in order to balance the budget and save hundreds of billions of dollars. Edwards proposes a balanced reform package of cuts to entitlements, domestic programs, and excess defense spending. He argues that these cuts would not only eliminate the deficit, but also strengthen the economy, enlarge personal freedom, and leave a positive fiscal legacy for the next generation. Downsizing the Federal Government discusses the systematic causes of wasteful spending, and it overflows with examples of federal programs that are obsolete and mismanaged. The book examines the budget process and shows how policymakers act contrary to the interests of average Americans by favoring special interests.

The main focus of downsizing has shifted from the private to the public sector. The cutbacks began in the Department of Defense. Now the goal is a federal civilian workforce reduction of 12 percent by the year 2000. This pioneering study looks at the management of workforce reductions in the public sector both in theory and in practice. Three case studies -- of the Defense Logistics Agency, the Bureau of Reclamation, and the Food and Drug Administration -- illustrate the organizational, managerial, and human dimensions of attempting to improve performance with reduced resources. The author draws on extensive interviews with senior executives and middle managers in the three agencies; at the General Accounting Office, the Office of Personnel Management, and the National Performance Review; the Senior Executives Association and the Federal Managers Association; and scholars and researchers. In a larger sense, this work pushes the boundaries of knowledge concerning organizational change and makes a significant contribution to organization theory. It offers important new insights not only for public sector managers but for organization theorists and management specialists whose work on downsizing has been presumed but not shown to be applicable to the public sector.

In this trenchant analysis of American society, Thomas Naylor and William Willimon take an unabashed stance against the belief that "bigger is better" and contend that there is a price to be paid for our uncritical affirmation of bigness.