All posts filed under: Economics

Food City (Joy Santlofer)

Food City, by the late Joy Santlofer, shows us the amazing history of manufacturing, in this case food manufacturing, in New York City.  Nowadays we don’t associate New York with manufacturing, but as recently as 1950, it was one of the largest manufacturing centers in the country.  Reading about this lost past is a fascinating exercise, even if there is much less manufacturing in the city today.

How An Economy Grows And Why It Crashes (Peter Schiff)

For the past few years, I’ve started thinking of basic economics through the prism of a thought experiment.  This involves starting all analysis by considering twenty people sitting around on the savanna, each with literally nothing except his or her ability to work.  This frame is highly instructive, because it allows the thinker to easily understand certain economics concepts, including, most importantly, that producing what others want is the only way to advance beyond subsistence.  As Henry Hazlitt said, “The poor are poor not because something is withheld from them but because, for whatever reason, they are not producing enough.”  This is as true for an entire modern society as it is for twenty people in the state of nature.

The Rise and Fall of American Growth (Robert Gordon)

This book is just not very good.  I was excited to read The Rise and Fall of American Growth; it was extensively and positively reviewed and it promised to illuminate an important topic by giving extended, specific analysis.  In particular, I wanted to learn about changes in productivity over time.  Instead, I first got an interminable, plodding exposition, which repeated commonly known facts ad nauseum for its first 600 pages.  But I soldiered on, knowing that the last 100 pages were analysis of current problems and of future productivity.  I should have cut my losses—those last 100 pages are exemplars of rank illogic and incoherence.  It didn’t end there, either—the book is then, at the last, capped by shrill, unsupported demands that America ingest a massive dose of insufferable and, at best, non-effective, leftist nostrums, considerably more pernicious than the 19th Century patent medicines the author unoriginally decries.  When I finished this book, I had to drink a fifth of cheap whiskey just to dull the pain, but now that the hangover is gone, I …

Colloquy: Not-For-Profits Are Not Inherently Virtuous and “Giving Back” Is A Stupid Term

[This is a colloquy between myself and a  friend of mine.  Italics are her; regular text is me.  She is responding initially to a comment I had made about “evil not-for-profits.”] I don’t understand, but without the rhetoric, I really want to see the world through your eyes regarding your comment about “evil not-for-profit…” How is it that people who sacrifice so much for others are evil? I’m a corporate attorney and admire the heck out of people able to do something I’m too greedy to do. While they walk the walk (of spiritual leaders, etc.), I’m just a coward saving money for my own kids’ education, etc. How are they “evil”? Mostly it’s a joke, meant to highlight the absurdity of classifying a businessman as inherently evil. But, given that you ask, here are some thoughts: 1) What makes you think people who work for “not-for-profit” entities “sacrifice so much for others”? That may be true for some, a very few. Let’s say, for example, Mother Teresa’s Missionaries of Charity. But generally, that’s not …

Capital without Borders: Wealth Managers and the One Percent (Brooke Harrington)

I read “Capital Without Borders,” a book on wealth management, because I wanted a “how-to” book. How could I, were I to become adequately rich, maximize my wealth by using methods available only to the knowledgeable and connected? Unfortunately for my purpose, “Capital Without Borders” doesn’t delve deeply enough into the precise mechanics of wealth maximization to be a useful “how-to” book. But it does contain a wide variety of interesting insights into the world of the new globalized elite, citizens of no country who completely lack positive feeling and loyalty towards their native lands. These insights are the book’s real value.

Wealth, Poverty and Politics (2nd Edition) (Thomas Sowell)

Thomas Sowell’s latest book, published in 2015 and now revised a year later, is the usual tour-de-force. It’s not so much that there’s anything startlingly new (although there are some interesting new statistics and several new lines of thought), but that Sowell has a unique ability to clearly and concisely bring together an analysis. In this case, that analysis is of “why are outcomes different for different people?” Sowell writes in opposition to the current vogue for equating differential outcomes with differential justice resulting from “malign actions by others,” with negative nods to Thomas Piketty, John Rawls and a wide range of similar social justice warriors.

Popular Economics (John Tamny)

“Popular Economics” is a well-written, glib primer. In some ways, it’s a dumbed-down version of Henry Hazlitt’s “Economics In One Lesson,” or a severely dumbed-down version of Thomas Sowell’s “Basic Economics.” Its goal is to instruct those with little economics knowledge that John Tamny has all the answers. Actually, it’s to instruct them that John Tamny has one answer to all questions, which is that government is an atrocity, and one solution, which is that the government needs to stop interfering in economic activity.

The Scandal of Money (George Gilder)

George Gilder is famous among conservatives. For decades, I have heard positive things about him, primarily for his work in supply-side economics and, more recently, in technology. “The Scandal of Money” is an unsuccessful attempt to combine the two. Criticizing both Left and Right, and most of all Wall Street, Gilder calls for unleashing economic growth through a monetary restructuring—namely, a return to the gold standard, buttressed by Bitcoin.

The Forgotten Man: A New History of the Great Depression (Amity Shlaes)

“The Forgotten Man” is both history and warning. It’s a great social/political history of the Depression. Rather than a recitation of economic facts, it emphasizes the personalities of relevant leaders in many fields and views the Depression through their interactions, with particular focus on the inability of the government to actually fix the Depression, despite their best (and not-so-best) efforts. The “forgotten man” of the title, in its usual historical frame, refers to Franklin Roosevelt’s use of the term—the politically weak voters on whom Roosevelt focused to get their votes, and supposedly rescued from economic despair. Shlaes resurrects in parallel the original and alternate meaning, of the man who bears the costs of government schemes directed at others.

The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good (William Easterly)

“The White Man’s Burden,” despite its inflammatory title, is a measured analysis of the ability of the West to help alleviate poverty in the rest of the world. The title is actually ironic, for the book concludes, in essence, that most of the burden the West has taken on has led to no improvement and much waste. This book is a companion, in many ways, to Easterly’s later book “The Tyranny of Experts.” It also has much in common with other books focusing on both the Great Divergence and the lifting of the poor out of poverty, in particular Angus Deaton’s recent book, “The Great Escape,” and James C. Scott’s seminal “Seeing Like A State.”