Sober without being dour and with a perhaps surprisingly optimistic conclusion. For policy wonks and readers with a grasp of...

THE MAP AND THE TERRITORY

RISK, HUMAN NATURE, AND THE FUTURE OF FORECASTING

Former Federal Reserve Board chairman Greenspan (The Age of Turbulence: Adventures in a New World, 2007, etc.) lightens up on free market orthodoxies to ponder the fact that people do not always behave, economically, as we wish them to—and neither do markets.

The author has long espoused a kind of laissez faire–ism that assumes that markets are self-adjusting and guided by the enlightened self-interest of individuals. Even so, Greenspan warned darkly of “over-exuberance” in the market, a polite way of hinting that a bubble was about to burst. The author opens with the admission that, yes, some people behave with less than “rational long-term self-interest” when everyone else is clamoring for the wonders of high-tech and the South Seas. A touch late in the game, he also asserts that, since we know of our irrationality as players in the economic game, we should be able to build this flaw into our economic forecasting models and predict future crashes. Though much of the book is a rather technical discussion—it is the dismal science after all—of things such as risk aversion and time preference, Greenspan scores some important points along the way. We need, he suggests, regulation in the marketplace—just not the kind of regulation we’ve been getting. Further, many of our problems, though of an economic nature, are political and not strictly matters of the exchequer, meaning that political solutions are required if, due to the current political mood in Washington, not likely to be soon forthcoming. On a level both micro and macro, the author also notes that “[o]ne of the most fundamental propositions of economics is that advances in standards of living require savings,” a bit of wisdom that we’ve all been neglecting.

Sober without being dour and with a perhaps surprisingly optimistic conclusion. For policy wonks and readers with a grasp of basic economics, a refreshing re-examination of doctrine, reality and effect.

Pub Date: Oct. 22, 2013

ISBN: 978-1-59420-481-4

Page Count: 400

Publisher: Penguin Press

Review Posted Online: Sept. 4, 2013

Kirkus Reviews Issue: Oct. 1, 2013

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A declaration worth hearing out in a time of growing inequality—and indignity.

ECONOMIC DIGNITY

Noted number cruncher Sperling delivers an economist’s rejoinder to life, liberty, and the pursuit of happiness.

Former director of the National Economic Council in the administrations of Presidents Bill Clinton and Barack Obama, the author has long taken a view of the dismal science that takes economic justice fully into account. Alongside all the metrics and estimates and reckonings of GDP, inflation, and the supply curve, he holds the great goal of economic policy to be the advancement of human dignity, a concept intangible enough to chase the econometricians away. Growth, the sacred mantra of most economic policy, “should never be considered an appropriate ultimate end goal” for it, he counsels. Though 4% is the magic number for annual growth to be considered healthy, it is healthy only if everyone is getting the benefits and not just the ultrawealthy who are making away with the spoils today. Defining dignity, admits Sperling, can be a kind of “I know it when I see it” problem, but it does not exist where people are a paycheck away from homelessness; the fact, however, that people widely share a view of indignity suggests the “intuitive universality” of its opposite. That said, the author identifies three qualifications, one of them the “ability to meaningfully participate in the economy with respect, not domination and humiliation.” Though these latter terms are also essentially unquantifiable, Sperling holds that this respect—lack of abuse, in another phrasing—can be obtained through a tight labor market and monetary and fiscal policy that pushes for full employment. In other words, where management needs to come looking for workers, workers are likely to be better treated than when the opposite holds. In still other words, writes the author, dignity is in part a function of “ ‘take this job and shove it’ power,” which is a power worth fighting for.

A declaration worth hearing out in a time of growing inequality—and indignity.

Pub Date: May 5, 2020

ISBN: 978-1-9848-7987-5

Page Count: 384

Publisher: Penguin Press

Review Posted Online: Feb. 26, 2020

Kirkus Reviews Issue: March 15, 2020

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BEATING THE STREET

More uncommonly sensible investment guidance from a master of the game. Drawing on his experience at Fidelity's Magellan Fund, a high- profile vehicle he quit at age 46 in 1990 after a spectacularly successful 13-year tenure as managing director, Lynch (One Up on Wall Street, 1988) makes a strong case for common stocks over bonds, CDs, or other forms of debt. In breezy, anecdotal fashion, the author also encourages individuals to go it alone in the market rather than to bank on money managers whose performance seldom justifies their generous compensation. With the caveat that there's as much art as science to picking issues with upside potential, Lynch commends legwork and observation. ``Spending more time at the mall,'' he argues, invariably is a better way to unearth appreciation candidates than relying on technical, timing, or other costly divining services prized by professionals. The author provides detailed briefings on how he researches industries, special situations, and mutual funds. Particularly instructive are his candid discussions of where he went wrong as well as right in his search for undervalued securities. Throughout the genial text, Lynch offers wry, on-target advisories under the rubric of ``Peter's Principles.'' Commenting on the profits that have accrued to those acquiring shares in enterprises privatized by the British government, he notes: ``Whatever the Queen is selling, buy it.'' In praise of corporate parsimony, the author suggests that, ``all else being equal, invest in the company with the fewest photos in the annual report.'' Another bull's-eye for a consummate pro, with appeal for market veterans and rookies alike. (Charts and tabular material— not seen.)

Pub Date: March 1, 1993

ISBN: 0-671-75915-9

Page Count: 320

Publisher: Simon & Schuster

Review Posted Online: May 20, 2010

Kirkus Reviews Issue: Jan. 1, 1993

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