A worthy introduction to Keynes’ ideas, but a slight account of free market thought.
A spirited argument for the superiority of the Keynesian theory of economics.
In contemporary political debate, the contest between free market advocacy and the promotion of statist regulation is usually conducted in the broadest, most binary terms. Debut author Bryson attempts to find a more nuanced but popularly accessible approach to modern economics, beginning with an assessment of the discipline’s methodological rigor. First, he contends that economics falls short as a scientific enterprise, as there are simply too many shifting variables at work, including psychological ones. In fact, he says, most economic theory resembles what he cheekily labels “mysticism.” As a tonic to such unempirical prejudices, Bryson recommends what he calls “informed common sense,” and the best bearer of such wisdom turns out to be the famous economist John Maynard Keynes (1883-1946). The author provides an impressively synoptic overview of Keynes’ economic innovations, including discussions of his theory of money, the causes and cures of unemployment, and the nature of savings and investment. Especially excellent is the author’s summary of Keynes’ views on central banking and the private financial sector, which is useful as a guide to today’s disputes about banking reform. There’s also a brief but informative section on the little-known economist Sir James Steuart, a precursor to Keynes by nearly 200 years who displayed almost shocking theoretical ingenuity and prescience. Bryson uses Keynesian ideas to dismantle classical economics; unfortunately, his account of free market philosophy isn’t as judicious as his descriptions of Keynes’ concepts. It reduces much of economist Adam Smith’s views to the untethering of human greed, overlooking the distinction that Smith made between avarice and rational self-interest. Also, the author often undermines his arguments with rhetorical stridency, too promiscuously discussing the “madness” and “idiocy” of those with whom he disagrees. Also, there are detours—such as a discussion of Ayn Rand—that seem gratuitous and ax-grinding. As a single-volume introduction to Keynes, or as a counterbalance to contentious sloganeering about the role of the government in economic stimulus, this is an erudite gem. However, readers will likely be frustrated by its displays of philosophical intemperance.
A worthy introduction to Keynes’ ideas, but a slight account of free market thought.Pub Date: June 22, 2016
ISBN: 978-1-5246-3115-4
Page Count: 240
Publisher: AuthorHouseUK
Review Posted Online: Sept. 20, 2016
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
A readable, persuasive argument that our ways of doing business will have to change if we are to prosper—or even survive.
A well-constructed critique of an economic system that, by the author’s account, is a driver of the world’s destruction.
Harvard Business School professor Henderson vigorously questions the bromide that “management’s only duty is to maximize shareholder value,” a notion advanced by Milton Friedman and accepted uncritically in business schools ever since. By that logic, writes the author, there is no reason why corporations should not fish out the oceans, raise drug prices, militate against public education (since it costs tax money), and otherwise behave ruinously and anti-socially. Many do, even though an alternative theory of business organization argues that corporations and society should enjoy a symbiotic relationship of mutual benefit, which includes corporate investment in what economists call public goods. Given that the history of humankind is “the story of our increasing ability to cooperate at larger and larger scales,” one would hope that in the face of environmental degradation and other threats, we might adopt the symbiotic model rather than the winner-take-all one. Problems abound, of course, including that of the “free rider,” the corporation that takes the benefits from collaborative agreements but does none of the work. Henderson examines case studies such as a large food company that emphasized environmentally responsible production and in turn built “purpose-led, sustainable living brands” and otherwise led the way in increasing shareholder value by reducing risk while building demand. The author argues that the “short-termism” that dominates corporate thinking needs to be adjusted to a longer view even though the larger problem might be better characterized as “failure of information.” Henderson closes with a set of prescriptions for bringing a more equitable economics to the personal level, one that, among other things, asks us to step outside routine—eat less meat, drive less—and become active in forcing corporations (and politicians) to be better citizens.
A readable, persuasive argument that our ways of doing business will have to change if we are to prosper—or even survive.Pub Date: May 1, 2020
ISBN: 978-1-5417-3015-1
Page Count: 336
Publisher: PublicAffairs
Review Posted Online: Feb. 16, 2020
Kirkus Reviews Issue: March 15, 2020
© Copyright 2024 Kirkus Media LLC. All Rights Reserved.
Follow
Popular in this Genre
We can’t wait for you to join Kirkus!
It’s free and takes less than 10 seconds!
Already have an account? Log in.
OR
Sign in with GoogleTrouble signing in? Retrieve credentials.
Welcome Back!
OR
Sign in with GoogleTrouble signing in? Retrieve credentials.
bookshelf