In his debut, Greek journalist Papadogiannis argues that the triumph of economics as a science is a tragedy of human arrogance.
In this stinging critique, the author writes that mainstream economics has lost touch with reality. Economists have cast economics as a “hard science” and have put their trust in mathematical models and the efficiency of free markets. Yet economic dilemmas erupt violently and unexpectedly, such as the global financial crisis of 2007 and 2008, despite economists’ assurances about stability and risk. Papadogiannis contends that this happens because the study of economics operates in a “parallel universe” that’s merely a shadow of how real life works. A number of dubious assumptions, he says, have left economics poorly equipped to explain a complex, chaotic world. Among them is the myth of “Homo economicus”—that people are economic agents who coldly calculate profit and loss for every decision. Citing voluminous research from psychology and the social sciences, Papadogiannis shows that people are seldom purely rational; emotions, biases, and social and political ideas profoundly influence people’s behavior. Add the disruptive nature of technology, and no mathematical formula can possibly capture the messiness of life. The only thing that’s certain, the author says, is another economic calamity. He hammers home this point with a thumbnail history of financial crises, from the 17th century tulip mania to the Great Recession of 2009. It reveals a pattern of boom-and-bust money-grubbing and misfortune that illustrates how academic theories crumble before human folly. The book’s true value is in how it challenges the so-called experts; like a dogged skeptic, Papadogiannis raises razor-sharp questions to expose flawed thinking (“Why did [economics] stubbornly ignore reality and get trapped on a lonely path?”), and in doing so, he accomplishes a rare feat: an economics text that will hold the attention of noneconomists. Richly sourced and strongly argued, his book is an attack on humanity’s self-deceiving faith in its own abilities. The author doesn’t deny the value of economics but rather urges its practitioners to widen their vision. The economy, in his view, is a many-sided beast driven by passions, expectations, fear and greed—just like the people who comprise it.
A forceful economics text that tells a damning tale of hubris.
Pub Date: Aug. 7, 2014
ISBN: 978-1499646672
Page Count: 296
Publisher: CreateSpace
Review Posted Online: July 23, 2014
Kirkus Reviews Issue: Sept. 1, 2014
Review Program: Kirkus Indie
Striking research showing the immense complexity of ordinary thought and revealing the identities of the gatekeepers in our...
A psychologist and Nobel Prize winner summarizes and synthesizes the recent decades of research on intuition and systematic thinking.
The author of several scholarly texts, Kahneman (Emeritus Psychology and Public Affairs/Princeton Univ.) now offers general readers not just the findings of psychological research but also a better understanding of how research questions arise and how scholars systematically frame and answer them. He begins with the distinction between System 1 and System 2 mental operations, the former referring to quick, automatic thought, the latter to more effortful, overt thinking. We rely heavily, writes, on System 1, resorting to the higher-energy System 2 only when we need or want to. Kahneman continually refers to System 2 as “lazy”: We don’t want to think rigorously about something. The author then explores the nuances of our two-system minds, showing how they perform in various situations. Psychological experiments have repeatedly revealed that our intuitions are generally wrong, that our assessments are based on biases and that our System 1 hates doubt and despises ambiguity. Kahneman largely avoids jargon; when he does use some (“heuristics,” for example), he argues that such terms really ought to join our everyday vocabulary. He reviews many fundamental concepts in psychology and statistics (regression to the mean, the narrative fallacy, the optimistic bias), showing how they relate to his overall concerns about how we think and why we make the decisions that we do. Some of the later chapters (dealing with risk-taking and statistics and probabilities) are denser than others (some readers may resent such demands on System 2!), but the passages that deal with the economic and political implications of the research are gripping.
Striking research showing the immense complexity of ordinary thought and revealing the identities of the gatekeepers in our minds.Pub Date: Nov. 1, 2011
ISBN: 978-0-374-27563-1
Page Count: 512
Publisher: Farrar, Straus and Giroux
Review Posted Online: Sept. 3, 2011
Kirkus Reviews Issue: Sept. 15, 2011
BOOK REVIEW
IN THE NEWS
These are not hard and fast rules, but Meyer delivers important reading for those engaged in international business.
A helpful guide to working effectively with people from other cultures.
“The sad truth is that the vast majority of managers who conduct business internationally have little understanding about how culture is impacting their work,” writes Meyer, a professor at INSEAD, an international business school. Yet they face a wider array of work styles than ever before in dealing with clients, suppliers and colleagues from around the world. When is it best to speak or stay quiet? What is the role of the leader in the room? When working with foreign business people, failing to take cultural differences into account can lead to frustration, misunderstanding or worse. Based on research and her experiences teaching cross-cultural behaviors to executive students, the author examines a handful of key areas. Among others, they include communicating (Anglo-Saxons are explicit; Asians communicate implicitly, requiring listeners to read between the lines), developing a sense of trust (Brazilians do it over long lunches), and decision-making (Germans rely on consensus, Americans on one decider). In each area, the author provides a “culture map scale” that positions behaviors in more than 20 countries along a continuum, allowing readers to anticipate the preferences of individuals from a particular country: Do they like direct or indirect negative feedback? Are they rigid or flexible regarding deadlines? Do they favor verbal or written commitments? And so on. Meyer discusses managers who have faced perplexing situations, such as knowledgeable team members who fail to speak up in meetings or Indians who offer a puzzling half-shake, half-nod of the head. Cultural differences—not personality quirks—are the motivating factors behind many behavioral styles. Depending on our cultures, we understand the world in a particular way, find certain arguments persuasive or lacking merit, and consider some ways of making decisions or measuring time natural and others quite strange.
These are not hard and fast rules, but Meyer delivers important reading for those engaged in international business.Pub Date: May 27, 2014
ISBN: 978-1-61039-250-1
Page Count: 288
Publisher: PublicAffairs
Review Posted Online: April 15, 2014
Kirkus Reviews Issue: May 1, 2014
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