(1)For nearly three decades, Washington has been in the grip of an economic orthodoxy defined by Ronald Reagan and embraced ardently by George W. Bush. It rests on four pillars: 1) Cut taxes on the wealthy, 2) Reduce regulation, 3) Fear inflation above all else, and 4) Insist on free-floating currency rates. Yet mainstream economists have spent much of the past decade examining the results, and declaring them rotten. Supply-side stimulation is a mirage. Deficits matter. Inequality matters. The disasters in Latin America--bread riots in Argentina, inflationary madness in Brazil - and Africa - bankrupt governments and capital flight - were a direct result of the Reagan-Bush agenda. James Galbraith is fed up, and determined to close the gap between what the economists know, and what the politicians ignore. In plain English, the Republican Party has been hijacked by political leaders who long since stopped caring if reality conformed to their message. Galbraith exposes the crumbling pillars one by one, naming names and pulling no punches.
The "free market" has been a hot topic of debate for decades. Proponents tout it as a cure-all for just about everything that ails modern society, while opponents blame it for the very same ills. But the heated rhetoric obscures one very important, indeed fundamental, fact--markets don't just run themselves; we create them. Starting from this surprisingly simple, yet often ignored or misunderstood fact, Alex Marshall takes us on a fascinating tour of the fundamentals that shape markets and, through them, our daily economic lives. He debunks the myth of the "free market," showing how markets could not exist without governments to create the structures through which we assert ownership of property, real and intellectual, and conduct business of all kinds. Marshall also takes a wide-ranging look at many other structures that make markets possible, including physical infrastructure ranging from roads and railroads to water systems and power lines; mental and cultural structures such as common languages and bodies of knowledge; and the international structures that allow goods, services, cash, bytes, and bits to flow freely around the globe. Sure to stimulate a lively public conversation about the design of markets, this broadly accessible overview of how a market economy is constructed will help us create markets that are fairer, more prosperous, more creative, and more beautiful.
By itself, this is a book about work, but it's also more than that. It is an outline of an analysis of capitalism: what it is, how it works, how we might dis-mantle it. And the book and the analysis are outgrowths of something more a movement of people determined to fight it. So this book isn't just an attempt to describe reality but also a tool with which to change it. If any of the words or illustrations resonate with you, don't leave them trapped on these pages write them on the wall, shout them over the intercom at your former workplace, change them as you see fit and release them into the world. This project is the combined effort of a group of people who have already spent many years in pitched struggle against capitalism. What qualifies us to write this? Some of us used to be students or pizza deliverers or dishwashers; others still are construction workers or graphic designers or civic-minded criminals. But all of us have lived under capitalism since we were born, and that makes us experts on it. The same goes for you. No one has to have a degree in economics to understand what's happening: it s enough to get a paycheck or a pink slip and pay attention. We re suspicious of the experts who get their credentials from on high, who have incentives to minimize things that are obvious to everyone else. Like every attempt to construct a scale model of the world, this one is bound to be partial in both senses of the word. To present the whole story, it would have to be as vast as history. There s no way to be unbiased, either: our positions and values inevitably influence what we include and what we leave out. What we offer here is simply one perspective from our side of the counter and our side of the barricades. If it lines up with yours, let's do something about it.
The world is at the crossroads of social change, in the vortex of forces that are bringing about a different world, a post-neoliberal state. This groundbreaking book lays out an analysis of the dynamics and contradictions of capitalism in the twenty-first century. These dynamics of forces are traced out in developments across the world - in the Arab Spring of North Africa and the Middle East, in Cuba and elsewhere in Latin America, in the United States, and in Asia. The forces released by a system in crisis can be mobilized in different ways and directions. The focus of the book is on the strategic responses to the systemic crisis. As the authors tell it, these dynamics concern three worldviews and strategic responses. The Davos Consensus focuses on the virtues of the free market and deregulated capitalism as it represents the interests of the global ruling class. The post-Washington Consensus concerns the need to give capital a human face and establish a more inclusive form of development and global governance. In addition to these two visions of the future and projects, the authors identify an emerging radical consensus on the need to move beyond capitalism as well as neoliberalism.
In this manifesto-style book, radical economist and strategist Umair Haque calls for the end of the corrupt business ideals that exemplify business as usual. His passionate vision for 'Capitalism 2.0', or 'constructive capitalism', is one in which old paradigms of wasteful growth, inefficient competition, and self-destructive ideals are left far behind at this reset moment. According the Haque, the economic crisis was not a market failure or even a financial crisis, but an institutional one. Haque details a holistic five-step plan for both reducing the negative and exploitive nature of the current system and ensuring positive social and economic growth for the future. Haque calls for a re-examination of ideals, and urges business away from competition and rivalries and toward a globally-conscious and constructive model and a constructive future. Haque argues that companies must learn to orient their business models around: renewal in order to maximize efficiency equity in order to maximize productivity meaning in order to maximize effectiveness democracy in order to maximize agility peace in order to maximize evolvability These new business ideals focus on the human element not profit exclusively and are easily tailored for any size or type of business, as long as they are willing to make bold and sustained changes to the current system.
Presents a story of two Chinas - an entrepreneurial rural China and a state-controlled urban China. In the 1980s, rural China gained the upper hand. In the 1990s, urban China triumphed. In the 1990s, the Chinese state reversed many of its rural experiments, with long-lasting damage to the economy and society. A weak financial sector, income disparity, rising illiteracy, productivity slowdowns, and reduced personal income growth are the product of the capitalism with Chinese characteristics of the 1990s and beyond. While GDP grew quickly in both decades, the welfare implications of growth differed substantially. The book uses the emerging Indian miracle to debunk the widespread notion that democracy is automatically anti-growth. As the country marks its 30th anniversary of reforms in 2008, China faces some of its toughest economic challenges and substantial vulnerabilities that require fundamental institutional reforms.
For a century and a half the artists and intellectuals of Europe have scorned the bourgeoisie. And for a millennium and a half the philosophers and theologians of Europe have scorned the marketplace. The bourgeois life, capitalism, Mencken's "booboisie," and David Brooks' "bobos" all have been, and still are, framed as responsible for everything from financial and moral poverty to world wars and spiritual desuetude. Countering these centuries of assumptions and unexamined thinking is Deirdre N. McCloskey's "The Bourgeois Virtues", a magnum opus offering a radical view: capitalism is good for us. McCloskey's sweeping, charming, and even humorous survey of ethical thought and economic realities - from Plato to Barbara Ehrenreich - overturns every assumption we have about being bourgeois. Can you be virtuous and bourgeois? Do markets improve ethics? Has capitalism made us better as well as richer? Yes, yes, and yes, argues McCloskey, who takes on centuries of capitalism's critics with astonishing erudition and range of reference. Applying a new tradition of "virtue ethics" to our lives in modern economies, she affirms American capitalism without ignoring its faults and celebrates the bourgeois lives we actually live, without supposing that they must be lives without ethical foundations. High Noon, Kant, Bill Murray, the modern novel, Van Gogh, and, of course, economics and the economy all come into play in a book that can only be described as a monumental project and a life's work. "The Bourgeois Virtues" is nothing less than a dazzling reinterpretation of Western intellectual history, a dead-serious reply to the critics of capitalism - and surprising entertainment as well.
A rising star in economics takes a forceful and sometimes personal look at how pro-business forces overwhelmed the pro-market principles that made American capitalism great, and how to get it back on track. Born in Italy, University of Chicago economist Luigi Zingales witnessed firsthand the consequences of high inflation and unemployment - paired with rampant nepotism and cronyism - on a country's economy. This experience profoundly shaped his professional interests, and in 1988 he arrived in the United States, armed with a political passion and the belief that economists should not merely interpret the world, but should change it for the better. In "A Capitalism for the People", Zingales makes a forceful, philosophical, and at times personal argument that the roots of American capitalism are dying, and that the result is a drift toward the more corrupt systems found throughout Europe and much of the rest of the world. American capitalism, according to Zingales, grew in a unique incubator that provided it with a distinct flavour of competitiveness, a meritocratic nature that fostered trust in markets and a faith in mobility. Lately, however, that trust has been eroded by a betrayal of US pro-business elites, whose lobbying has come to dictate the market rather than be subject to it, and this betrayal has taken place with the complicity of America's intellectual class. Because of this trend, much of the country is questioning - often with great anger - whether the system that has for so long buoyed their hopes has now betrayed them once and for all. What we are left with is either anti-market pitchfork populism or pro-business technocratic insularity. Neither of these options presents a way to preserve what the author calls "the lighthouse" of American capitalism. Zingales argues that the way forward is pro-market populism, a fostering of truly free and open competition for the good of the people - not for the good of big business. Drawing on the historical record o
The financial and economic crisis that began in 2008 is the most alarming of our lifetime because of the warp-speed at which it is occurring. How could it have happened, especially after all that we've learned from the Great Depression? Why wasn't it anticipated so that remedial steps could be taken to avoid or mitigate it? What can be done to reverse a slide into a full-blown depression? And why have the responses to date of the government and the economics profession been so lackluster? Richard Posner presents a concise and non-technical examination of this mother of all financial disasters and of the, as yet, stumbling efforts to cope with it. No previous acquaintance on the part of the reader with macroeconomics or the theory of finance is presupposed. This is a book for intelligent generalists that will interest specialists as well. Among the facts and causes Posner identifies are: excess savings flowing in from Asia and the reckless lowering of interest rates by the Federal Reserve Board; the relation between executive compensation, short-term profit goals, and risky lending; the housing bubble fuelled by low interest rates, aggressive mortgage marketing, and loose regulations; the low savings rate of American people; and, the highly leveraged balance sheets of large financial institutions. Posner analyzes the two basic remedial approaches to the crisis, which correspond to the two theories of the cause of the Great Depression: the monetarist - that the Federal Reserve Board allowed the money supply to shrink, thus failing to prevent a disastrous deflation - and the Keynesian - that the depression was the product of a credit binge in the 1920's, a stock-market crash, and the ensuing downward spiral in economic activity. Posner concludes that the pendulum swung too far and that our financial markets need to be more heavily regulated. Read Richard Posner's blog, and his latest article in "The Atlantic".
Just as today's observers struggle to justify the workings of the free market in the wake of a global economic crisis, an earlier generation of economists revisited their worldviews following the Great Depression. The Great Persuasion is an intellectual history of that project. Angus Burgin traces the evolution of postwar economic thought in order to reconsider many of the most basic assumptions of our market-centered world. Conservatives often point to Friedrich Hayek as the most influential defender of the free market. By examining the work of such organizations as the Mont Pelerin Society, an international association founded by Hayek in 1947 and later led by Milton Friedman, Burgin reveals that Hayek and his colleagues were deeply conflicted about many of the enduring problems of capitalism. Far from adopting an uncompromising stance against the interventionist state, they developed a social philosophy that admitted significant constraints on the market. Postwar conservative thought was more dynamic and cosmopolitan than has previously been understood. It was only in the 1960s and '70s that Friedman and his contemporaries developed a more strident defense of the unfettered market. Their arguments provided a rhetorical foundation for the resurgent conservatism of Barry Goldwater and Ronald Reagan and inspired much of the political and economic agenda of the United States in the ensuing decades. Burgin's brilliant inquiry uncovers both the origins of the contemporary enthusiasm for the free market and the moral quandaries it has left behind.
Globalisation is a choice, not a fact. It is the result of policy decisions and the politics that shape them. Jeffry A. Frieden's insightful history explores the golden age of globalisation during the early years of the twentieth century, its swift collapse in the crises of 1914-1945, the divisions of the Cold War world and the turn again towards global integration at the end of the century. His history is full of character and event, as entertaining as it is enlightening.
The late twentieth century has witnessed the establishment of new forms of capitalism in East Asia as well as new market economies in Eastern Europe. Despite the growth of international investment and capital flows, these distinctive business systems remain different from each other and from those already developed in Europe and the Americas. This continued diversity of capitalism results from, and is reproduced by, significant differences in societal institutions and agencies such as the state, capital and labour markets, and dominant beliefs about trust, loyalty, and authority. This book presents the comparative business systems framework for describing and explaining the major differences in economic organization between market economies in the late twentieth century. This framework identifies the critical variations in coordination and control systems across forms of industrial capitalism, and shows how these are connected to major differences in their institutional contexts. Six major types of business system are identified and linked to different institutional arrangements. Significant differences in post-war East Asian business systems and the ways in which these are changing in the 1990s are analysed within this framework, which is also extended to compare the path-dependent nature of the new capitalisms emerging in Eastern Europe.
