Book Description

How did the rich countries really become rich? In this provocative new study, Ha-Joon Chang examines the great pressure on developing countries from the developed world to adopt certain "good policies" and "good institutions", seen today as necessary for economic development. Adopting an historical approach, Chang finds that the economic evolution of now-developed countries differed dramatically from the procedures that they now recommend to poorer nations. His conclusions are compelling and disturbing: that developed countries are attempting to "kick away the ladder" by which they have climbed to the top, thereby preventing developing counties from adopting policies and institutions that they themselves used. ... Read more

Reviews (1)

An iconoclastic and sophiscated work
According to Michael Lind's book review in Prospect (Jan 2002), this book is "the most important book about the world economy to be published in years." And the author received the 2003 Myrdal Award for this book, which is awarded annually to a great academic achievement in the field of development/institutional economics following the late Swedish economist's name Gunar Myrdal who was a Nobel Prize laureate.

Prof. Ha-Joon Chang of Cambridge argues in this book that developed countries used some measures for promoting their economy in their earlier days of development, which they are now blaming for making the economies of developing country worse and the world economic order unfree.

The author reverses this logic. According to his arguments, policy-suggestions from such arguments of developed countries are in fact making the economy in developing countries lag behind and its development impossible, and such a rule of game in the world economy now can be rather unfair to them because developing countries even are often punished due to their using of the very same methods which developed ones used in the past.

As a critique of neo-liberal market fundamentalism, this book is very iconoclastic because it gives readers a sophisticated understanding of the real history of industrial development as well as pleasure of reading an academically original and creative work. This book is above all analytical in terms of using the method of historical comparisons. Some comparisons may be too bold. But its creativity and integrity in organizing the research overcome the limits of bold comparison. ... Read more

Book Description

In recent years sociologists have taken up a fruitful examination of such institutions as capital, labor and product markets, industrial organization, and stock exchanges. Incorporating classic and contemporary readings in economic sociology as well as offerings from related disciplines, this book provides students with a broad understanding of the dimensions of economic life. A major introduction by the editors traces the history of thought in the field and assesses recent advances and future trends. LONG DESCRIPTION BEGINS HERE ... Read more

Reviews (1)

Worlds apart: the story of the Methodenstreit
This excellent book is a must for anyone interested in the historical roots of the dominant economic school today (noeclassical economics) and how it shares foundations with sociology. This may come as as a surptise for most students of either economics or sociology, but these approaches used to unite in studying the dynamics and mechanisms of society. However, due to fundamental disagreements pertaining on how to study this phenomenon, economics and sociology separated in the 19th century (the methodenstreit) read all about why and how these schools mnow wide apart maybe are reuniting in a neoinstitutional framework. This book is really well-written by one of the really great authorities in social network research: Richard Granovetter. I can only recommend this book which will make you feel much wiser on the social sciences when you are done with it ... Read more

Book Description

Providing the first theoretical analysis of regulation of public services for less developed countries (LDCs), Jean-Jacques Laffont demonstrates how the debate between price-cap regulation and cost of service regulation is affected by the characteristics of LDCs. Laffont develops a new theory of regulation with limited enforcement capabilities, and discusses the delicate issue of access pricing in view of LDCs' specificities. His evaluation of the different ways to organize the regulatory institutions makes a significant contribution to the field. ... Read more

Book Description

Presents a global view of stratification in an interesting but theoretically sound way, using an effective combination of academic works, lively stories, and news reports. Helps to educate the social science major or general student about social and cultural differences across the world, and teaches about growing global interdependence and how this is connected to contemporary social problems.

Reviews (1)

Extremely Informative
This was an excellent read!Great for people who are curious about the effects of globalization on the world's labor force.The authors have divided the world's labor markets into regions and provided extensiveinsight into the effects of globalization on under developed regions; andthe consequences faced in the Americas as a result of increasedglobalization.Easy and interesting read.The other books in this series,Sociology for a New Century are great as well. Try Waves od Democracy next. ... Read more

Book Description

The approach of this text for upper-level undergraduates is to teach monetary economics using the classical paradigm of rational agents in a market setting. By teaching from first principles, the authors aim to instruct students not only in the monetary policies and institutions that exist today in the United States but also in what policies and institutions may or should exist tomorrow and elsewhere.The text builds on a simple, clear monetary model and applies this framework consistently to a wide variety of monetary questions.The authors have added in this second edition new material on speculative attacks on currencies, social security, currency boards, central banking alternatives, the payments system, and the Lucas model of price surprises.Discussions of many topics have been extended, presentations of data greatly expanded, and new exercises added. ... Read more

Reviews (3)

Beautiful; economics as it should be written
Economists have a responsiblity to communicate as simply as possible. Too often complex mathematics are an egotistic tool of the economist that merely frustrates the reader. Champ and Freeman's Modeling Monetary Economies is a wonderful volume that explains tough issues in monetary economics by building upon Wallace and Bryant's overlapping generations (OLG) model.

The OLG framework is a very simple framework that has its limitations, yet it is a powerful explanatory device. Champ and Freeman apply it to the following exercises:
* Introduce money into an economy--any grad student of economics (as I once was) will tell you this is no simple task! We take money for granted, of course, but mathematical models tend to imply that money is unnecessary! Just getting money into an economic model without unreasonable assumptions is itself an accomplishment.

* Inflation--again, not easy to do in other mathematical models of money--and anticipated inflation

* International currency exchange and the indeterminancy of the exchange rate

* Central banking and changes to the money supply

* Banks and lending

* Deficits and the national debt

* The interaction of all of the above

The book also has exercises in it that apply and extend the models introduced in each chapter.

RECOMMENDATION
I recommend this book for advanced year undergrads (in mathematical econ programs) and graduate students. It really is a great book that builds a conceptual knowledge of the interaction of the various components of monetary economics. This is useful for understanding more complicated dynamic optimization models. And it provides models that are useful in their own right and relevant as the basis for further (ie., dissertation) research.

A thoughtful introduction to mathematical economics
This book is an example of how mathematics is intelligently used in economics, and the understanding of the latter is thereby enhanced. Only basic algebra is used, yet the authors are able to make non-trivial explanation about economic phenomena, from why money must exist to inflation to payment system. The text is mathematical and abstract, but as I read it, my frame of mind remains firmly that of an economist, and not of a mathematician (which is as it should be). The text is carefully written, flowing and anticipative of difficulties that a reader may have.

This is not an introductory text to economics, and I reject the idea that those with strong mathematical background should be introduced to economics in a different way from others. Any beginner, mathematical or not, should read Samuelson and the like first.

Academic, organized, and extremely concise
This book is a very good introduction to quantative monetary theories. Readers with science or engineering background can especially benefit from authors' concise mathematical expressions. It gives a clear and academic view about fundamental theories, so don't expect to see a lot of economical data or "stories". ... Read more

Book Description

Praise for The Power of Gold and Peter l. Bernstein

"Mr. Bernstein has turned this story–not an obvious golden opportunity for even a writer of Mr. Bernstein’s skill–into a real page-turner."–The Wall Street Journal

"Bernstein’s volume is a tour de force with a satisfying conclusion: The characters in this drama prove themselves ‘fools for gold, chasing an illusion.’ "–Business Week

"This book is an eloquent, brilliantly written historical review of how gold has influenced the evolution of monetary systems and trade, from early civilizations to the present day. Bernstein succeeds in presenting an enormous amount of research in a format as easy to read and as captivating as the best murder mystery."–Risk magazine

"There are sugarplums throughout the book....The pleasure of the book is in its sheer number of unknown places and interesting episodes."–The New York Times

"The triumph of Peter Bernstein’s book is that in the end you understand why and how it happened that the golden dog no longer barks. Bernstein is America’s greatest living economic journalist."–The Boston Globe

"Bernstein . . . does full justice to his material. Almost every chapter contains some detail to surprise or delight."–Financial Times

"The range of research evident throughout the book is staggering.... Bernstein’s ear for the telling quote is pitch perfect."–USA Today ... Read more

Reviews (35)

As good as gold
Except for a brief explanation of what gold is, and a few of the major gold rushes, "The Power of Gold" is essentially the economic history of gold. That isn't neccessarily a bad thing, the only major flaw with the book in my opinion is when the Europeans/Americans wrangle over the gold standard. The last section involving how much gold is a dollar or a pound is just plain dull. However, most of the book a fascinating look at our fascination with the magic metal. My favorite history books are written by novices, since the author usually enjoys his subject enough to write about it, and Bernstein does have an enthusiasm over his subject that is infectious. So, I would definitely recommend this book to anyone interested in the history of gold or even modern money.

A Powerful Study
Peter Bernstein has written a fascinating account of the role of gold throughout history. This book should help solidify him in the front rank of current economic writers. Starting with the physical properties of the metal which help explain its attraction to cultures around the world, Bernstein traces the evolution of the precious metal from the time of Croesus through the abandoment of the Bretton Woods system.

The book is as much a sociological study as a financial treatise and readers looking for a strictly economic argument about the merits/demerits of a gold standard should probably look elesewhere. Having worked for a money management firm who was the largest owner of gold equities in the world, I am familiar with the obsession of the true believers and they will not be satisfied with this account. But true believers aside, perhaps the most powerful argument that Bernstein makes is a question - namely, why should the pace of human economic development be controlled by the vagaries of nature and changes in extraction technology.

A look at gold for what it really is...
I thoroughly enjoyed this book and it answered many of my nagging questions about gold's history and in some cases financial history. While I was well prepped by other comments on how this was more a "history" book rather than an "investment" book, I didn't expect the degree of insight it would offer me into our existing monetary system. I found that insight rounded out the book very well.

Given the evolution in our financial and monetary system over the past few centuries, it amazes me to see the number of people who are still enamored with gold. The only real justification for holding gold is to be insured against a catastrophic event hitting the global financial system. Given that gold earns nothing waiting for that unlikely day, every investor has to ask them self how much they are willing to pay for that insurance.

Peter Bernstein makes a fairly compelling case to look at gold for what it really is today - a commodity. Gold did have it's day in the sun, but that sun has now set...

Not bad.
Having expected this book to be more about the get rich schemes or preparing for the collapse of the world economy, I found this book to be more like a world history lesson on gold instead. The book provides an interesting look at gold from a historical perspective, and how it has dominated civilizations around the world in both the past and present. Gold has, as few would doubt, stood the test of time akin to a financial Rock of Gibraltar, and this book presents why that has been so and why it will continue to be so.

Great history of gold and money in general book.
Not your typical gold book (most are Buy Gold Now! type books - this is an honest history), the author is a true historian that writes in a very easy to read and compelling style. I actually laughed out loud twice while reading his footnotes! One of the best books out there for getting a historical look at gold and its role in our world. Also gets you current on the last 100 years of the forces driving the international money supply.

Bernstein also wrote Against The Gods: The Remarkable Story of Risk, another great read and hard to put down (a must for any gambler/investor). ... Read more

Reviews (5)

A parsimonious argument.
When I picked up this book to begin reading it, I was quite frankly nervous. I'd heard it recommended in so many places that I wanted to read it, but I am not an economist by training and so was not sure that I was going to be able to follow the arguments that it laid out.

While I'm certainly not going to claim that I understood everything, I think that I did manage to follow the majority of Olson's points. Furthermore, I believe that this owes more to the lucid and well-structured nature of the book than it does to me being blessed with any unusual intelligence.

_The Rise and Decline of Nations_ begins with an explanation of the questions that the book will explore and sets the standards for the consideration of a satisfactory answer. It then works out the logic of the offered argument and breaks that argument down into 9 well-described implications. It then goes on to test and explain that logic and those implications. Olson does a wonderful job of providing adequate support the concepts that he introduces, even to the point of pointing out areas where non-economists might have special trouble or require further information. As a result of all his hard work, the book has the feeling of being exactly as long as it needs to be, and no longer.

I was certainly convinced by his arguments about how special interest groups affect economic growth. I understood why he was unwilling to take it farther into the area of policy, but couldn't help but wonder what the eventual policy implications would be, assuming that his theory is further tested and developed. I also found myself wondering if this argument would work in the same way *within* a corporation and whether it might say something about reorganisation and restructuring exercises.

I thoroughly enjoyed reading it, and recommend it wholeheartedly.

Power groups disected
In this extremely well written book Mancur Olson applies his Noble Price winning 'Logic of Collective Action' to the real world. It tries to give a partial answer to the question: why do some countries get rich and others do not? Well: power groups emerge and make a society rigid. The society cannot properly respond to changes anymore. The theory is applied to a very large number of nations throughout recorded histrory: from ancient China and caste India to apartheid South Africa and post-industrial-revolution England. The only country/nation throughout the entire human histry he admids he has trouble understanding with this great theory is France. Read it!

Elegant Theory Elegantly Presented
Professor Olson describes a wide range of social/economic structures and processes (unions, big government, high and rising taxes, regulation, monopolies, etc.) that characterize most economies but more so the aging economies of Western Europe (This book was written before the unification of eastern and western Europe). He then proceeds to show us what these all have in common: They each, together and with time, contribute in increasingly slowing down and stifling a nation's economy. Reading this book leads one to see that the USA is also involved in a similar progression, albeit at an earlier stage. I first read this book as an Economics student about 15 years ago. I enjoyed it tremendously. I also learned from it. His clear and powerful conveyance of concepts have kept the ideas with me. He explains the economics simply yet completely. One need not have studied Economics to follow him. I highly recommend this book. Even though the author's forescast is gloomy, his book is brilliant. Sherry S.

A classic in the world of political economy.....
It surprises me that I haven't reviewed this book..... Anyway, this is one of the classic works on political economy: it builds on the Olson's earlier (and perhaps even better work) 'The Logic of Collective Action' using the logic contained therein to explain why and how different societies have prospered (and declined....) at certain stages in the world's or there own development.

Without writing a short book report for the undergraduate readers of this book, countries he examines are spread across the world; much of his thesis hinges on post-WWII comparisons of the US against Japan and Germany....

For prospective readers of Olson's work: first, I would start with 'The Logic...' BEFORE you read this, though a reading of this book would not be compromised by not having done so. His newer book 'Power and prosperity...' can be safely avoided (it's kinda expensive as it is still only out in hardcover...) having read both of these; you could then waste your political economy-budgeted money on either the works of Douglass North ('Structure and Change in Economic History';'The Rise of the West), Karl Polyani ('The Great Transformation'), or, well, Hemingway or Fitzgerald or something fun to read.....

I do highly recommend this book. Any student of foreign affarirs, politics at any level (though people who don't do IR or comparative stuff might benefit more from 'The Logic...'), economists, or students of history. Perhaps even to more general readers.....

An excellent study with plenty of applications.
Olson does a stellar job "proving" his theory using accepted scientific standards. His main thesis is that stable societies, over time, will be stifled by a steady growth of groups each committed to obtaining a disproportionate amount of society's goods. This theory, composed of only nine implications, is parsimonious with wide explanatory power. It helps to explain the post-war growth of coutries such as Japan and Germany, while providing a reason why the growth rates of the United States, and especially Great Britain, have been stagnated. Perhaps the most interesting chapter of the book is the last, in which Olson merges both Keynesianism and monetarism to form a new theory of macroeconomics. By using his theory, he is able to better explain involuntary unemployment than either of the more popular schools of macroeconomic theory. I was amazed at how many phenomena, such as slavery and the Indian caste system, can be at least partially explained by Olson's theory. Anyone seriously interested in knowing the way the world works will want to give this theory substantial consideration. ... Read more

Book Description

The growth of technological and scientific knowledge in the past two centuries has been the overriding dynamic element in the economic and social history of the world. Its result is now often called the knowledge economy. But what are the historical origins of this revolution and what have been its mechanisms? In The Gifts of Athena, Joel Mokyr constructs an original framework to analyze the concept of "useful" knowledge. He argues that the growth explosion in the modern West in the past two centuries was driven not just by the appearance of new technological ideas but also by the improved access to these ideas in society at large--as made possible by social networks comprising universities, publishers, professional sciences, and kindred institutions. Through a wealth of historical evidence set in clear and lively prose, he shows that changes in the intellectual and social environment and the institutional background in which knowledge was generated and disseminated brought about the Industrial Revolution, followed by sustained economic growth and continuing technological change.

Mokyr draws a link between intellectual forces such as the European enlightenment and subsequent economic changes of the nineteenth century, and follows their development into the twentieth century. He further explores some of the key implications of the knowledge revolution. Among these is the rise and fall of the "factory system" as an organizing principle of modern economic organization. He analyzes the impact of this revolution on information technology and communications as well as on the public's state of health and the structure of households. By examining the social and political roots of resistance to new knowledge, Mokyr also links growth in knowledge to political economy and connects the economic history of technology to the New Institutional Economics. The Gifts of Athena provides crucial insights into a matter of fundamental concern to a range of disciplines including economics, economic history, political economy, the history of technology, and the history of science.

... Read more

Reviews (2)

Toward an economics of knowledge
Partly because it is too wide-ranging to settle on any sound-bite answer, this is one of the better books around to examine the question of the sources of the West's technological and economic supremacy.

In "The Gifts of Athena", Joel Mokyr sets his sights on three objectives: First, to establish that expanding knowledge has been the engine driving the world's expanding economy over the last few centuries, rather than the other way around. Second, to explore the factors that control the discovery and application of new knowledge, so as to get a better grasp on why the Industrial Revolution took place in Europe, and why England might have led the way. Finally, to speculate on what I found to be a startling question: what's to prevent the explosive expansion of technology to which we have become accustomed from falling into stagnation, as lesser periods of innovation have done throughout history?

He accomplishes the first objective handily. Apparently some economists believe that the Industrial Revolution must have been driven primarily by economic forces (new means of capitalization and rising demand) rather than by the availability of science, because of the multi-century lag from Kepler and Newton to the economic blastoff. But Mokyr argues that there was a necessary intermediate stage, the "Industrial Enlightenment", which structurally altered the relationship between "what-is" and "how-to" forms of knowledge, as well as making both forms radically more accessible to artisans, entrepeneurs, and the general public.

His explorations of the other two questions are fresh and illuminating, but a bit picaresque. There's no overarching theory here and, except for parts of the chapter on adoption of new technology by households, little quantitative rigor. Where the discussion excels is in its opening pages, which lay out a useful systematic language for talking about kinds and qualities of knowledge; in its readiness to think outside the market-explains-all box; and in its unflagging supply of vivid historical examples.

Among many piquant ideas, the central insight I brought away from this work was the extent to which the phenomenon of "science" is a collection of socially enabling institutions, rather than just a Baconian method. Not that Mokyr holds much brief for the notion that the conclusions of science are socially constructed. Rather, its conclusions become accepted and transmitted, and therefore available for economic use, only by the grace of a set of social relationships and conventions that Bacon's scheme did not mandate, and which might just as easily not have taken place.

I should note that where economics are concerned, I'm very much a layman, and not really even a particularly informed one. ("Oh, Schumpeter, yeah, I heard of him somewhere.") I found Mokyr's text challenging but frequently engaging, and comprehensible throughout.

Peerless scholarship
"Gifts of Athena" is an outstanding piece of work with profound consequences for research and policy. Its intellectual radiance will finally make the remaining shadows of conventional economic history fade into oblivion. It guides the perplexed, reassures the convinced and guides the uninitiated. ... Read more

Book Description

Reviews (1)

Andybody Who Cares Should Read This
An excellent, excellent book in several ways. Anybody who cares - about society - conservative, moderate, or liberal should read this. All economists, political scientists, politicians, and students of these fields should read this book carefully. The Economist's Tale is a true morality play. It looks at the way economics plays out in real-life using the framework of food policy in Sierra Leone. The author is not against market forces - but as economic theory has recognized in the last few decades - markets work (or don't work) with many attendant frictions and imperfections. Unfortunately, in the tale told within this book, people die because of these frictions.

The Economist's Tale is also quite interesting and riveting as a read. It is also a quick read. One learns much about Sierra Leone among other non-economic subjects. It appears nobody else has rated this book yet - which tends to indicate that few people have read it - a sad state of affairs. ... Read more

Book Description

From the acclaimed authors of A Future Perfect comes the untold story of how the company became the world’s most powerful institution.

Like all groundbreaking books, The Company fills a hole we didn’t know existed, revealing that we cannot make sense of the past four hundred years until we place that seemingly humble Victorian innovation, the joint-stock company, in the center of the frame.

With their trademark authority and wit, Economist editors John Micklethwait and Adrian Wooldridge reveal the company to be one of history’s great catalysts, for good and for ill, a mighty engine for sucking in, recombining, and pumping out money, goods, people, and culture to every corner of the globe. What other earthly invention has the power to grow to any size, and to live to any age? What else could have given us both the stock market and the British Empire? The company man, the company town, and company time? Disneyfication and McDonald’sization, to say nothing of Coca-colonialism? Through its many mutations, the company has always incited controversy, and governments have always fought to rein it in. Today, though Marx may spin in his grave and anarchists riot in the streets, the company exercises an unparalleled influence on the globe, and understanding what this creature is and where it comes from has never been a more pressing matter. To the rescue come these acclaimed authors, with a short volume of truly vast range and insight. ... Read more

Reviews (9)

Companies made interesting
There are few creatures more vilified in today's world than corporations. For some, companies are the instruments of evil, they exist to profit at the expense of ordinary people, and their chief executives are defamed for their greed and ambition. All the same, most people live off the checks they receive from those evil beasts; and, being the CEO of a large company offers comparable prestige with other esteemed professions.

Wrestling with these competing images of corporations is part of what "The Company" aims at. John Micklethwait and Adrian Wooldridge, both of The Economist, embark on an ambitious project to show that the corporation lies at the heart and center of organized societies-more so than the state, the commune, the political party, the church, and others.

Having put modesty aside, the authors deliver on their promise with great skill, both literary and scholarly. All pervasive in their narrative is a deep sense of historical perspective-of contrasting the companies of today with those of the past. This need of putting the present in context is extremely valuable in canvassing the role that corporations (and particularly multinationals) play in the world today.

Several themes emerge in this historical journey. The first is the evolution of the company itself through a continuous political debate about its role and place in society. A second charts the different attitudes that societies have had towards companies; in particular the authors focus on the United States, Britain, Germany and Japan.

At the heart of this book is the dialectic between society and company; the Virginia Company, for example, effectively introduced democracy in America in 1619. This helps explains why Americans have been more receptive to companies that have other countries. This is one of countless examples in the book that chronicle the immense impact that companies have had the world over.

"The Company" not only explains the historical arguments that have been front and center of the debate about the role that companies should play, but it also captures the timeless forces that have shaped, and are likely to keep shaping, the debate in the future. Certainly a book no one would like to miss.

Excellent book - just the right length - 4.5 stars
This book is nicely researched and well presented- not too long (not padded out) and not too short (despite its title).

I finally understood the origin of the US term 'Trust' as in 'Anti-trust'.

It was also interesting to see the role the Railways (Railroad) had played in causing the Company to evolve, from the limited-time partnerships of the Sailing Ships to the 'ownership' by the Pension Funds.

Only one irritation - the sub-editor must have been asleep reviewing the proofs (in my UK edition anyway). Each page contains genuine hyphenated terms such as 'joint-stock' and 'Anglo-Saxon', but there are rogue hyphenations such as in 'chap-ter', 'Car-negie', 'custom-ers', 'Gas-kell', and you keep having to re-read them to see what they mean? I found them in 5 different chapters, so its not as if only one piece of text was added/removed and threw out the pagination?

Bold thesis
Sweeping history of the corporation in a very short concise book. For many, I think just the history of the corporation would make this book worthwhile. Their claims about the importance of the corporation in world history represent a bold thesis, but the authors provide evidence not only over time but across countries and show why the different forms of corporations allowed some countries to advance faster than others.

Amusing reading, not to deep
The company is a fun little book for someone who wishes to understand the contribution of such entities to the creation of wealth in the modern world. It is not a thesis and it doesn't pretend to be one. It is basically a recollection of historical data starting from the fenician merchants and ending with the current anti globalization movement. However, beside the historical data and some insight into the views of the authors, the book doesn't ellaborate to much into any particular thesis. It is not a pertentious book but a fun one to read on a weekend.

Stimulating, If Basically Light, Reading
* THE COMPANY, by John Micklethwait and Adrian Woolridge, is a brief
historical survey of the evolution of the concept of the corporate
organization.

Partnerships and shareholding are concepts that go back a long time.
One of the most prominent of the "pre-modern" corporations was the
British East India Company, established by royal charter to control
trade with India, in fact becoming the effective government of India
for a time. However, the modern company didn't really arise until the
last half of the 19th century.

Corporations before that time had existed under specific government
charters, and it took some time for governments to become comfortable
with the notion that any group of people who wanted to form a
corporation could do so without explicit state approval, being
required only to meet a simple set of rules that applied to all. It
also took time to become comfortable with the notion of "limited
liability" -- that is, the now completely accepted notion that
stockholders who buy stock in a company may lose their stock, but will
not be liable for a company's debts.

Starting from that point, THE COMPANY goes on to describe the rise of
the modern corporation, particularly the rise of the US companies
during the period of "robber baron" capitalism up to the First World
War, and contrasting that with the corporate styles of other nations.
Britain, which had pioneered the legal mechanisms establishing the
modern corporation, lagged behind because of a social snobbery against
commerce, while Germany and Japan harnessed corporate energies into
service for the state.

The book then traces the evolution of the American corporate concept
of the 1950s and 1960s -- when the world seemed dominated by the likes
of GM, IBM, and Coca-Cola -- and how rapid changes in technology
undermined, though by no means crippled, the power of the major
corporations during the rest of the century. It concludes by

examining recent corporate scandals and the controversy over
multinational corporations and "globalism".

* Both the authors are staffers for the British ECONOMIST magazine,
and THE COMPANY reflects that to the point of generally seeming to be
an expanded ECONOMIST essay. This is not really a complaint, however.
Yes, it does come on as sketchy in places, and sometimes a bit glib.
I spent almost two decades working for a major corporation, and it
seems a bit funny to see a book discussing such places in a sanitized
fashion when anyone who's been stuck in one for a long time suspects
that a realistic book on how a big corporation works would have to be
written by Kafka and illustrated by Dali. (Ah, but things always look
different close up.)

THE COMPANY certainly reflects the ECONOMIST's enthusiastic boosterism
of capitalism, and of course the reader is given an almost obligatory
defense of globalism -- but a measured one, admitting that though the
Left may be loony at times, they still have a few valid points and
concerns. In any case, overall this is a fun little book to read,
lively and entertaining, even worth some rereading, though in

the end it's basically casual reading. ... Read more

Amazon.com

The Great Unraveling is a chronicle of how "the heady optimism of the late 1990s gave way to renewed gloom as a result of "incredibly bad leadership, in the private sector and in the corridors of power."Offering his own take on the trickle-down theory, economist and columnist Paul Krugman lays much of the blame for a slew of problems on the Bush administration, which he views as a "revolutionary power...a movement whose leaders do not accept the legitimacy of our current political system." Declaring them radicals masquerading as moderates, he questions their motives on a range of issues, particularly their tax and Social Security plans, which he argues are "obviously, blatantly based on bogus arithmetic."Though a fine writer, Krugman relies more heavily on numbers than words to examine the current rash of corporate malfeasance, the rise and fall of the stock market bubble, the federal budget and the future of Social Security, and how a huge surplus quickly became a record deficit. He also rails against the news media for displaying a disturbing lack of skepticism and for failing to do even the most basic homework when reporting on business and economic issues. The book is mainly a collection of op-ed pieces Krugman wrote for The New York Times between 2000 and 2003. Overall, this format works well. Krugman writes clearly about complicated issues and offers plenty of evidence and hard facts to support his theories regarding the intersection of business, economics, and politics, making this a detailed, informative, and thought-provoking book.--Shawn Carkonen ... Read more

Reviews (180)

Bush fans need not read! Keep your head in the sand......
If you are a George Bush fan this book is probably not for you. Paul Krugman is currently a columnist for the New York Times but is an economist and has been involved with politics since he worked with committeemen in the Reagan administration. The book was taken from his columns from 2000 to 2003. While he tries to simplify things his primary method of explaining things is through the use of numbers.

Krugman explains what happened to the surplus and why the big tax cuts are aimed at ELIMINATING Social Security. Paul Krugman also has some harsh words for his fellow journalists for taking comments from the administration at face value without even doing minimal investigation to check on their validity. If you are a moderate or left in your politics and want to know what happened in the last 3 years this book is for you. If you just want snappy comebacks for your right wing friends then I suggest Al Franken' book instead.

After all, the top 20 reasons for going to war stated by Bush, Cheny, Powell, and Rice have ALL been PROVEN wrong. We give tax breaks to the rich, yet the Bush administration announces they want to cut back on Social Security benefits. WOW! Don't you see something wrong with this?

Economist and Princeton professor Krugman explains why we are back into deficits, why the right-wing GOP refuses to work within the limits of the American political framework, why Americans are now pessimistic about most things, and he exposes George W. Bush for what he is -- A power hungry liar.
But, not only does Krugman point all this out with his great logic and wit, he also (unlike most current political authors) offers ideas on how we can get our great country back on the right track again.

If you are open minded and looking for those books begging for its pages to be turned...look no further. I just read a copy of Edgar Fouche's 'Alien Rapture,' which also blew me away. Fouche was a Top Secret Black Program 'insider', whose credibility has been verified over and over. I also really liked Dan Brown's 'Angels and Demons.' Want to be shocked, check out Dr. Paul Hill's 'Unconventional Flying Objects' which NASA tried to ban.

Ab Uno Disceomnes--From One Thing Learn All
I first read this book several months ago, and have had time to think about it and to refer to it periodically. At first I was disappointed. I expected a book of analysis on what has happened to the country under the Bush presidency. Instead, I found a collection of Mr. Krugman's columns. Because I already read his op-ed pieces every Tuesday and Friday for free on line in the New York Times, I felt a little cheated. But Mr Krugman is an economist, and getting paid twice for the same work is very economical, I guess.

But as I read "The Great Unraveling" the technique grew on me, and I accepted the book for what it was. The introduction (pp 6-20) is truly compelling. Here Krugman introduces his readers to the concept of the "revolutionary power." He borrows the idea from Henry Kissinger's PHD dissertation "A World Reborn." He argues that the neocon movement the Bush Administration represents is such a power. These people do not play by established rules of conduct. Their values and goals differ from those of the established order. Krugman delineates the characteristics of such a movement from again borrowing from Kissinger's work. It was reminiscent of a conversation between Sean Connery as a streetwise Chicago cop and the idealistic Eliot Ness played by Kevin Costner. In the exchange the elder man tells Ness how he has to approach getting Capone

Also, Krugman writes as an economist and not as a journalist; he makes this point early in the book. Because of his training as an economist he did not buy into the Bush campaigns statements about how they would meet government obligations and offer huge tax cuts at the same time. His professional training would not allow him to buy the oft cited equation in the book that 2-1=4. His training as an economist allows him to spring board into a broader discussion about areas beyond pure economics.

An old friend of mine told me that though I was a complete failure that "I could always serve as a bad example." This is how Krugman studies economics, looking at bad examples, mistakes that have occurred in foreign economies so that he can predict what will happen in our country and in our economy.

The book begins with an examination of bubbles in the economy--how the exuberance they create works to undermine economies. He talks about the bubble in the Asain Rim and ultimately in American high tech stocks. He explains the Ponzi scheme and how it applies to contemporary economics and why the feeding frenzy that ensues is often so irrepressible. He rues the role of Alan Greenspan in perpetuating the irrational exuberance that the tech rallies fomented. In the following section he takes on the crony capitalists--that group of beneficiaries of greed at Enron, Global Crossing, Adelphia, etcetera, explaining the reasoning for why CEO's plunged their companies into the abyss as they did. It involves stock options and cooking the books.

The sections of the book are designed to follow different threads of this unraveling. In retrospect I realized that this was indeed the best way to watch something come apart--reports over time on a variety of topics. It is interesting to watch Krugman's thinking emerge.

Also, it is interesting to watch that thinking evolve away from just economics and into the things that economics impacts--which is everything. He discusses the impact on health care, the Iraq War, terrorism, the treatment of veterans and of little people. There is a compelling quote in the book where Krugman questions whether Dick Armey and Tom Delay really believe the draconian free market solutions they espouse or whether they just "hate poor people." He talks about injustice to veterans--how the Bush administration tries to conceal benefits from them.

Krugman, at bottom, is not an ideologue. He is interested in economic results. He attacks some of the arguments against globalization. He contrasts economists like Larry Summers and Larry Lindsay, showing how ideology can effect solutions. He states that sound economists, regardless of how they are labeled right or left, differ little in their assessments of conditions given sound information. He writes that the collapse of the Argentine economy had not so much to do with free market solutions as it did faulty monetary policy. Conversely, he shows that Sweden, while a highly taxed mixed economy, is doing very well--low unemployment and 4% growth.

Mr Krugman is an "honest broker" who believes that he should report according to the best evidence, measure results and not ideological purity. As he does report, he watches those who do believe in ideological solutions press on in their great unraveling.

Much-Needed Wakeup Call
Krugman has been a beacon of truth in some very dark days in American politics. Because he is an economist rather than a journalist, Krugman can expose the Bush administration's deceptions by doing the math and checking the sources. It's a rare talent these days, when most news reporting consists of little more than printing a quote from side A and an opposing quote from side B ("balance" accomplished!), with no regard for the objective truth of these claims.

While the book is essentially a collection of Krugman's New York Times columns, I found it very valuable for seeing how various stories unfolded, from the growing awareness that California's energy crisis was in fact engineered by Enron traders "gaming" the system to the deceitful manner in which the Bush adminstration lured the country into the misguided and tragic war in Iraq.

But more than anything, this book is not to be missed because of Krugman's excellent introduction, in which he explains how the Bush administration constitutes (in Henry Kissinger's term) a "revolutionary power" that will brook no compromise and will do anything (issue bogus terror alerts, out CIA agents, knowingly lie to the American public, etc.) to maintain and extend its power and ram its extremist agenda down our throats.

The Great Unraveling is a much-needed wakeup call for the American public and an urgent and timely warning of the dangers the Bush administration poses to our cherished democracy.

Ex-Enron Consultant fails to come clean
When will Krugman talk about how he was a (well) paid for Enron as they were scamming investors and Enron employees who lost their life savings. Come clean Krugman!

Outdated anthology of spiteful and shallow op-eds
A member of my extended family recommended this book as "the" book that would "convert" me from my moderate stance. He said he was just sure I would read it and begin to "hate Bush" as much as he does. He was just sure I would "see the light."

So I read it, with an open mind, yet skeptical that one book could sway me.

It is trash. And, as it turns out, I had already read the entire book in its many pieces.

First off, it is shallow. Because it is essentially just a collection of old op-eds, there is no depth, no real substance. If you want the gist of this book, just go to the NYT archive and pull up a few of his op-eds.

Which brings me to my second point, that it is repetitive. The op-eds are hollow and short, yet some of them cover almost the same ideas. If you've read one on a particular subject, you've read them all. My advice for Mr. Krugman: either elaborate or go to a new subject, por favor. Thanks.

Third, Krugman contradicts himself over and over. For example, his paranoid belief that President Bush wants to de-fund the government and take away the social safety net secured by FDR doesn't jive with his bemoaning of the deficits (and blaming them solely on Bush, nothing else) we now face.

Fourth, the guy just seems angry. I guess some Americans share his anger, and if you are angry and pessimistic about life and our country, this is the book for you, but he just is such a vindictive and bitter writer that it is hard to take him seriously.

Fifth, along those same lines, his hyperbole makes him not very credible. He seems to believe the worst about the direction of the country and the leadership of the Bush administration, no matter what he is talking about. Even good news becomes bad news to Paul Krugman.

If you are a moderate, you will be repulsed and repelled, as I was. If you are a conservative, you will probably become energized to fight against it. If you are a liberal (or just anti-Bush), this probably won't enlighten you or give you anything new to use at happy hour or around the water cooler, but it will, in a rather shallow way, reinforce your anger and resolve to oust Bush (notice, I didn't even say it would reinforce your ideology or positions or beliefs, because it likely will not). ... Read more

Book Description

The beginning of global commerce in the early modern period had an enormous impact on European culture, changing the very way people perceived the world around them.Merchants and Marvels assembles essays by leading scholars of cultural history, art history, and the history of science and technology to show how ideas about the representation of nature, in both art and science, underwent a profound transformation between the age of the Renaissance and the early 1700s. ... Read more

Book Description

A complete survey of man's intellectual advances in the light of economic phenomena, this monumental volume now includes a new introduction by Mark Perlman, one of the foremost contemporary economists and former editor of the prestigious Journal of Economic Literature. ... Read more

Reviews (4)

Economics for adults
This book is one of the greats. Written by a master of economic theory, it reflects his learning and insight. But have no mistake, Schumpeter expects you to meet him half-way, so if you like to be spoon-fed and prefer pictures to words, this is not the book for you. The book needs to be read together with the original material: Schumpeter is not a substitute for, but a guide to the material he writes about. To criticise this book for not being light reading is simply to misunderstand this: to understand important thoughts requires some thinking and if you are not prepared to do the work, you shouldn't fool with this book. While Blaug's book is a decent solid survey, the only work which begins to rival Schumpeter's in erudition and incisiveness is Marx's Theories of Surplus-Value, which covers a narrower period. If you respect this book and *really* study it, the effort repays handsomely. Enjoy!

The beginnings of economic concepts in full detail
The objective of Schumpeter, one of the greatest economists of all times, is to portray in a very comprehensive detail, all the philosophical thinking that conduced to contemporary Economic Analisys, since the beginning of the ancient greek thought.

To me, that had a very great misconception about the works of Joseph Alois Schumpeter, this book was a revelation, be it for the immensity of his erudiction both as an historian, philosopher and economist, be it for the ingenuity in which he presents many new ideas and perspectives regarding economic analisys.

He is sometimes difficult to follow, not helped by the many and extensive footnotes he appends the book with, and by the many quotations he does in foreign languages, which he usually do not translate, be it in ancient Greek, Latin , French or German. Also , the book was unfinished in his lifetime and had to be edited by his wife, who was also deceased before the full completion of the giantic task. Even so, the book has some 1.300 pages and covers the full range of all the relevant economic thougth until the time of its publication.

A warning sign of caution must be addressed to the non-professional readers not not fully interested in the magnitude of such a scope, that is, of addressing the formative ideas of each and every important concept in economic analisys in a so complete way. This can be an overkill for you. But if you are interested in Medieval thought, the concepts exposed by , for instance, Saint Thomas and many others, this is a very good reading. Enjoy it

Complex and Sophisticated History of Economic Theory
The legendary History of Economic Analysis is without a doubt one of the greatest books of economic history ever written, but one should examine what kind of reading they're looking for before he or she embarks on this thousand page text. Schumpeter's unfinished history is divided into sections by ideology and time-period which is particularly useful but once you penetrate the well-organized table of contents, the writing becomes arcane and complex.

For a reader well-grounded in economic theory and history, I am sure that this is a bible; but for a curious reader interested in the history of economics (in a more political as opposed to theoretical perspective) this book may not be right. Highly footnoted and not very smooth writing, as well as obscure references to economists and theories results in a history that is very demanding of the reader. If you are looking for an economic history text that reads like From Dawn to Decadence you may be seriously disappointed, as I had been, but if you are a serious student of economics and are willing to spend the time to deliberate over Schumpeter's words then History of Economic Analysis is right for you.

THE masterpiece in history of economic thought
After the considerable success of his then only in germanpublished Little Sketch of Doctrines and Methods, and while he wasteaching at Harvard, Schumpeter started working on a book wich would cover the ground of Little Sketch an beyond. What began just as leisure would become THE masterpiece in History of Economic Thought. Schumpeter spent ten years in this colossal effort and unfortunately did not finish it before his death. Nevertheless, nowhere else you will find a book more powerful and more profound on this theme. By History of Economic Analysis Schumpeter means the history of efforts made in the pursuit of comprehending economic phenomena, from Antiquity to present; not a book on history of ideologies. Schumpeter places the authors in their times and contexts, and tries to understand how they proceeded in analysing economic reality. A must for anyone interested in economic theory, history and philosophy. ... Read more

Book Description

This inquiry into the rise and fall of the great Wall Street boom of the 1990s, from bestselling author Roger Lowenstein, has all the hallmarks of a financial classic.

Roger Lowenstein, recognized as one of the best financial reporters of our time, turns his focus to the 1990s stock market and economic boom and bust in Origins of the Crash. With his singular gift for turning complex financial events into eminently readable stories, Lowenstein lays bare the labyrinthine events of the manic 1990s-including the collapse of Enron, the dot-com bubble, the accounting scandal at Andersen, and much more.

Drawing on his sense of history, Lowenstein inquires how a financial system that arose out of the wreckage of the Depression and that was intended to avert the miscues of that era could ultimately repeat the very same scenario of massive speculation and corruption leading to collapse. He discovers the roots of the recent crisis in the financial culture that cropped up in the 1970s and 1980s as America encouraged companies to hand out ever greater packages of stock options to their executives. In an enthralling narrative, Lowenstein ties together all of the characters of the great boom and bust: Alan Greenspan, Jack Grubman, Jack Welch, Abby Cohen, Henry Blodget, and a host of dot-com pioneers. But it is the collective rendering of such figures-the unique portrayal of the culture of the era-that truly distinguishes Origins of the Crash as the book that will frame our appreciation of the period.

Just as John Kenneth Galbraith's The Great Crash was the canonical text of 1929, Lowenstein's Origins of the Crash is destined to become the definitive account of the 1990s. ... Read more

Reviews (24)

The Naked 90's
In Origins of the Crash, Roger Lowenstein has written a fascinating account of the late 90's stock market bubble and subsequent collapse. The overriding theme of the book is that the culture of "shareholder value" was twisted from creating true long-term value into an obsession with the daily ups and downs of the companies' stock prices. It's an interesting way to view things and should prove thought provoking to many. Lowenstein makes a compelling case that the scandals of the past several years are not the work of just a few bad actors, but rather were symptomatic of widespread failures throughout all levels of business, government and the public. The cast of villains is extensive including the now common ones like Ken Lay (along with Skilling and Fastow), Jack Grubman, Bernie Ebbers (and Scott Sullivan) and Henry Blodget, but also includes the complicity of weak boards (and overall lax corporate governance), conflicted accountants and lawyers and an investing public (both individual and professional) that was too busy making money to worry about any of it.

I am not sure how much new reporting there is in this book... much of it is pulling together various stories that have been widely reported on. But it is put together artfully into a compelling narrative. It was fascinating to watch Michael Jensen, who was one of the earliest advocates of the use of stock options, eventually turn on his own creation. The section on Enron, while obviously not as extensive as some of the works devoted to the subject, is one of the best condensed accounts I have seen.

I do have a few quibbles with the book though. First, it winds up being something of a polemic. Reading Mr. Lowenstein's book, you get the distinct impression that there was not a single positive thing that happened at any time during the 90's. I found myself wondering if any companies managed to get it right... and if so, how and why? Second, in highlighting the abuses of options at the executive level, I think Mr. Lowenstein gives short shrift to the positive effects they can have on the lower levels of an organization. In the same way, he glosses over that there are some justifiable reasons for not expensing options. Finally, I question some of his comments about deregulation. He argues that the deregulation of telecom went to far or was perhaps even a bad thing. And yet, the purpose of regulation is not to protect the value of companies, it is to ensure access at the most reasonable costs possible. By that standard, deregulation of telecom should be seen as a success. Sure, lots of capital was destroyed and many companies failed, but it is not the government's job to prevent that.

But those issues aside, the book will stand as one of the more definitive accounts of the excesses of the 90's and Mr. Lowenstein's case against the culture of shareholder value will hopefully inspire some new thinking amongst executives, boards and investors. In short, I would highly recommend this book to anyone interested in recent market/business history.

The Theme Never Changes, Only the Stories
There are only two emotions that motivate the stock market: fear and greed.

In his latest market history, Roger Lowenstein explores how the theme of creating shareholder value morphed into unbridled greed and led to the latest stock market crash.
Delving back to the 1970s and 1980s, Lowenstein spins a compelling narrative, of heavy hitters -- Jack Grubman, Sandy Weill, Frank Quattrone, Henry Blodget, Mary Meeker, Abby Cohen, Bernie Ebbers, Frank Lay, Jeffrey Skilling, Gary Winnick -- who checked their moral scruples, fiduciary responsibility and better judgment at the door in the pursuit of personal wealth. Along the path, they co-opted the system's traditional restraints: full disclosure, public accounts and corporate attorneys.

I was disappointed Lowenstein failed to include the Richard Grasso incident. As the head of the New York Stock Exchange and regulator of virtually every individual mentioned in the book, his pursuit of personal wealth at the expense of those he was charged with regulating would have served as the icing and cherry on top of this tale of greed.

Regardless, this well-researched and powerfully written portrait of the rise and fall of the bull market of the 1990s will studied by market historians for decades to come.

dry, acerbic wit accurately dissects the money culture
This is a really good, introductory book that explains the whole money culture of the 90s, its origins, and many of the seemingly absurd and illogical justifications used by various players to justify the bubble that permeated Wall St.

It is quite informative, always entertaining, and Lowenstein's wit and acerbic sense of humor make one chuckle at the outrageousness of some situations.

That said, the book, while descriptive, is not prescriptive: it does not offer much in the way of solutions to the issues so eloquently raised in its pages. It is quite easy, after all, to determine that a hitter swings his bat too wildly to make contact with the ball; it is much harder to tell the batter how to make contact with the ball. Describing the history and culture that gave rise to some of the more egregious practices of the past ten years is certainly informative; however, such descriptions merely contextualize the problem and do little to advance debate on how to overcome such problems.

For example, Lowenstein quite correctly points out that one big cause of the mania for shares was managers' sudden infatuation with hitting quarterly earnings targets...which fascination these managers fixated on because the Street told them that is the yardstick by which they would be judged. So? Good analysis, good explanation that the logic implied in the relationship between managers, their colleagues on the street, and the maniacal focus on hitting earnings targets is self-referential if not outright incestuous. But Lowenstein does not take this argument to the next step: what do we do to cut off such self-referential silliness as that which is described?

That is a discussion he does not approach, and one that neither he nor anyone else seems to have. History, of course, will judge if the corporate reforms as of late, such as Sarbanes-Oxley and the focus on corporate governance will have the desired effect.

The Clinton boom wasn't a boom - it was a sham.
What really caused the great stock market bubble of the 90s? Who was responsible for the economic growth of that decade? Who are the villains that robbed millions of their life savings?

Lowenstein weaves a stomach turning tale of rampant dishonesty and criminality; individual, corporate and political greed; the willful failure of law enforcement on the federal level; the blindness created by greed and exposes the myth of the so-called Clinton boom years.

In the end, Lowenstein shows how the Depression-era laws intended to protect the public against stock swindles were simply ignored by the Clinton Administration. Sharp-witted corporate executives learned that they could loot the companies they ran in behalf of the shareholders and the shareholders themselves. The investment bankers learned that they could tout stocks with impunity, no longer having to fear being penalized for lying about the companies they cheered and simply turning a blind eye to accounting arcana and bad news. The accounting and legal professions, supposedly self-policing, dedicated themselves to finding ways to make dung look like gold, even if they couldn't remove the smell. The media, with its legions of financial "reporters" and their dependence on the advertising revenue of the very businesses they reported on, did no fact checking of their own, but simply parrotted the lies they were fed.

And the government? Then President Clinton and legislators simply took the donations of the very people who were fomenting the bubble - and turned a blind eye to enforcing the laws.

Several thousand people grew very, very rich from all this chicanery - while millions lost money, sometimes disastrously so.

Lowenstein describes how it all began with the inflation of stock options awarded to executives. It didn't take long for corporate executives with compliant boards, lawyers and accountants to realize that a seemingly unlimited flow of wealth was waiting to be tapped. The investment bankers and stock analysts saw - as it always has been - how stock prices could be run up without a whit of truth supporting their claims. Buy, buy, buy became the mantra to the public - while the folks on the inside saw profit on every transaction.

Enron and Worldcom were but the largest perpetrators of this sham on the company side, assisted by legions of lawyers who sought loopholes, accountants who looked the other way, stockbrokers who didn't care as long as the public kept buying - and regulators and politicians who lined their own pockets.

It's a sad tale of the Clinton boom. It never was what it was publicized as being - it was a sham and millions of ordinary people are the poorer for it. But not the fat cats in the White House, Congress, the brokers or the others who pulled it off. A few may ultimately go to some country club jail, but they'll be able to afford whatever they want from the commissary.

Jerry

Origins of the Crash: The Great Bubble and Its Undoing
Lowenstein, a well-known author and financial columnist, has crafted a lively and readable account of the last 30 years on Wall Street. Starting with the creation of 401(k) accounts, proceeding through the boom years of the 1990s, and then moving to the downfall of Enron and its brethren, he ties in the various factors that have inexorably led us to where we are today. While none of this is new information, Lowenstein includes enough personal details to make it seem fresh and interesting. The last chapters are particularly relevant, covering the fallout when the various deals and compensation scandals came to light. The effect of 9/11 on the government and the country in general is also touched on, particularly with regard to the rising budget deficit. Finally, an epilog discusses the fines and reforms (including the Sarbanes-Oxley Act of 2002) that resulted from the various debacles and opinions about what else must be done. The book is heavily documented throughout with quotes and sources, making it authoritative as well as informative. Recommended for public libraries.- ... Read more

Book Description

THE ESSENTIAL GALBRAITH includes key selections fromthe most important works of John Kenneth Galbraith, one of the most distinguished writers of our time - from THE AFFLUENT SOCIETY, the groundbreaking book in which he conined the tern "conventional wisdom," to THE GREAT CRASH, an unsurpassed account of the events that triggered America's worst economic crisis. Galbraith"s new introductions place the works in their historical moment and make clear their enduring relevance for the new century. THE ESSENTIAL GALBRAITH will delight old admirers and introduce one of our most beloved writers to a new generation of readers. It is also an indispensable resource for scholars and students of economics, history, and politics, offering unparalleled access to the seminal writings of an extraordinary thinker. ... Read more

Reviews (2)

More people need to know this stuff
It does not take this book very long to get to how organizations need a system of motivation which appeals to the individuals who will take part in the organization's activities. Economists primarily serve planners, with whatever can promote the organizers of the technostructure who are looking for ways to expand their activity, usually in ways that produce private profit. To produce examples of individual motivations, Galbraith mentions "Ditch-digging" (p. 81) and soon moves up, or down, depending on your point of view. "But once again the ditch-digger is not the most powerful example. The cabinet officer or high official who serves and on occasion concurs in action that he finds repugnant in order to advance measures of which he approves is a better case. He came to be part of something approaching a majority of American officialdom as those involved in the Vietnam war came to explain why they went along." (p. 82). A common form of ditch in Vietnam was a latrine, dug by soldiers because each of them was likely to need to use the latrine as much as the next G.I., and a place that had already been prepared next to a big pile of loose dirt, or a can under a simple crate with a large hole on top, was as luxurious an accommodation as any soldier could expect prior to being evacuated from Nam himself. Digging the ditch was a pleasure, compared to the chore of burning what was in the can, but Nam was a situation that lasted so long, the Army needed to provide for human waste in a way that avoided unsanitary results from new troops coming in and digging up an area that had been the previous unit's latrine.

After a century of fantastic organizational growth, and fifty years of economics from Galbraith, it takes a tremendous amount of balancing contrary ideas to avoid the worst of what has gone before, in particular, the "cabinet officer or high official who serves and on occasion concurs in action that he finds repugnant." (p. 82). "The Case for Social Balance" on pages 40-54 noted how, in times of economic growth that was highly profitable, industry salaries could rise faster than governments could keep up, and with high inflation, the revenues of cities "lag behind when prices rise. The problem of financing services thus becomes increasingly acute as and when inflation continues." (p. 52). Trying to balance public needs with the views of typical investors, "Urgent warnings were issued of the unfavorable effects of taxation on investment" (p, 53), Galbraith ends his balancing by trying to foist the higher sense of disorder on F. A. von Hayek, who wrote "Where distinction and rank is achieved almost exclusively by becoming a civil servant of the state . . . it is too much to expect that many will long prefer freedom to security." [THE ROAD TO SERFDOM, p. 98] (THE ESSENTIAL GALBRAITH, pp. 53-54).

Arguments tend to illustrate how primitive political positions are, and sending millions of individuals from America to Vietnam as members of the armed forces, supposedly to protect American interests in drilling for oil in the South China Sea, where oil reserves had not even been identified at the time, helped some of them to learn, "Compulsion is inconsistent with either identification or adaptation. If a person is compelled to accept the goals of an organization, he is unlikely, at least as long as he is under the sense of compulsion, to find them superior to his own." (p. 83). This does not resolve the situation in 2003, except for those lucky investors who check the news every day to see if the oil wells are still safe.

After everyone has absorbed "The Concept of the Conventional Wisdom," (pp. 18-30) in a way that assumes a higher standard of living will be most highly regarded in our society, pursuant to "The Myth of Consumer Sovereignty," the position of Galbraith as a thinker might be considered self-effacing in the extreme. Once you see what he is saying about Am