The death of the free market at the hands of monopoly has gotten a lot of recent attention. By far the best book about this problem is Tim Wu’s The Curse of Bigness, which through a “neo-Brandeisian” lens focuses on how monopoly destroys the core frameworks of a free society. This book, The Myth of Capitalism, comes to much the same conclusion from a more visceral starting place—why have wages stagnated even though the labor market is tight and corporate profits are soaring? The answer is corporate concentration, and Jonathan Tepper is, like Wu, offering concrete solutions.
This classic book, by a long-dead and almost-forgotten German economist, is suddenly relevant again. I have had a copy on my bookshelf for thirty years, never read, and I was startled by how timely A Humane Economy is. Today, elements of Left and Right are ganging up to kick neoliberalism when it’s down, aiming to break the long-dominant alliance between the corporatist Left and Right, and thereby to overturn the instrumentalist view of humans as fodder for an economic machine. We are simply awaiting the next crisis to see what will emerge. Wilhelm Röpke foresaw the problems we face today, because he lived through their early days—though I am not sure his solutions are practical, at least until a lot more chaos first sweeps across the land.
From the cover, I expected this book to be a lightweight documentary version of Crazy Rich Asians, offering painfully amusing stories about the foibles of the super-rich, accompanied by cautions about the negative effects of such behavior upon the rest of America. Plus, the picture of private jets in the driveway attracted me as a vision of my hoped-for future, since I am comfortably in the 0.1%, and much of my time is spent struggling to reach yet higher. Instead, this book is a pretty dense, though rambling, web of analysis, with no funny stories at all. Still, it’s modestly worthwhile in itself, and it has the additional benefit that it sheds light on today.
Ship of Fools extends the recent run of books that attack the American ruling class as decayed and awful. However it is characterized, as the professional-management elite, the Front Row Kids, or one of many other labels, all these books argue the ruling class is running our country into the ground, and most argue it is stupid and annoying to boot. I certainly agree, and I also tend to agree with the grim prognostication in the subtitle, that revolution is coming—that is, this will end in blood. What this book fails to offer, though, just like all these books, is any kind of possible other solution. Which, after a while, reinforces the reader’s conclusion that there is no other solution.
This isn’t a great book, but it’s a starting point for discussions that are worth having. Richard Reeves gently flogs his own class for their sins, an act he thinks is very daring, though he uses a thin, silken cord and doesn’t put any muscle into it. The upper middle class, he says, is pulling up the bridge to the Castle of Success, protecting its own sons and daughters from the dragons outside, at the expense of the peasants milling about on the other side of the moat. He thinks this is bad, although he is confused as to exactly why that should be, since it seems “unfair,” but he can’t say what that is with any precision, and, after all, isn’t personal choice the most important thing of all? So this book mostly goes nowhere, but it can tickle the mind into some genuine thought.
I find that my hit percentage on economics books is about 50%. One out of every two books I read is excellent, and the other is awful. Very little seems to be in between. Unfortunately for me, this book is in the latter group. It is supposed to be, I think, an effort to show that a mainstream economist can be less than totally enthused about unlimited free trade and “hyper-globalization,” without being on the side of Trump or “illiberal democracies,” and without giving up his neoliberal ID card. But Straight Talk on Trade is just a mess.
Although no author likes to have his book lumped with another, this book is an excellent complement to Tim Wu’s The Attention Merchants. Both books discuss, from different angles, possible practical reactions to the modern dominance of digital toys and tools. Today, when companies such as Facebook and Google are increasingly under fire from across the political spectrum, David Sax’s The Revenge of Analog reminds us of one possible response—not attack (although I am personally all for attacking such companies), but a return to the active use of pre-digital things. He takes us on a persuasive tour of analog offerings, and makes a compelling case for their continued persistence and growth, even if he seems unaware of some of the less socially beneficial results of that trend.
[Admin’s Note: This is a guest post by Jared, a Canadian and grudging dilettante with too much time on his hands.] As I continue to re-evaluate my take on the economics of the 20th century, Coase’s work stands out as well as or better than it ever did. Ronald Coase is probably my favourite economist of all time; his work is arguably as foundational as Smith’s or Ricardo’s and was developed over just a handful of influential and easily-digestible papers. The Firm, the Market, and the Law is more or less a summary of Coase’s most important work, containing his famous The Nature of the Firm and The Problem of Social Cost, but also several other papers, plus ample commentary from Coase himself circa 1990. Coase died in 2013 at the ripe old age of 102.
A few weeks ago, I watched a bad movie on Netflix—The Cloverfield Effect. This near-future science fiction film (distantly related to the original Cloverfield, an updated Godzilla-type movie) revolved around a disastrous attempt to generate unlimited energy in space, needed because the entire world was “two years from running out of all energy.” Yes, that’s really as stupid as it sounds. But Meghan O’Sullivan is here to tell us that just as stupid is the idea that we’re running out of fossil fuels, within any time frame that matters. And she is further here to tell us what that means, for our economy, our global position, and for the future stability of the world, both geopolitically and environmentally.
For decades, “free trade” has been the American orthodoxy across the mainstream of both Left and Right. Some recent erosion has occurred, though, with the Bernie Sanders Left dividing from the neoliberal Left on this issue, and with the reactionary and Trumpian segments of the Right dividing from the corporatist Right. However, cogent, clear-eyed intellectual support has been thin for the position that wholly unfettered and unguided free trade is not necessarily a wonderful tonic for every economy. This 2010 book provides such support, and was an early entrant in a field that will, perhaps, become more crowded over time.