A fresh, lightly written look at issues noteworthy for their complexity; just the book for the budding economist in the...

THE GROWTH DELUSION

WEALTH, POVERTY, AND THE WELL-BEING OF NATIONS

Of economic growth and its discontents—and of new ways to gauge all of them.

“Growth for the sake of growth is the ideology of the cancer cell,” the environmental curmudgeon Edward Abbey was fond of saying. One suspects that Financial Times associate editor Pilling would endorse the view, though he puts things less stridently in this studied look at economic growth and its measures and mismeasures. “Economics,” he writes, “can present a distorted view of the world.” True enough, especially because a sine qua non of modern economics is gross domestic product, a calculation of all the things that happen in an economy. But as the author memorably notes, GDP is morally indifferent: it “likes pollution,” because money is spent to clean up environmental messes, and “likes crime because it is fond of large police forces and repairing broken windows.” War and catastrophe? No problem, from a GDP point of view. Pilling examines some of the ways that renegade economists have proposed to consider the true health of an economy, with all the externalities of economic activity taken into account, from various equations to happiness rankings to the Genuine Progress Index, one of the more interesting “measures of economic welfare.” Refreshingly, the author’s approach does not require much background in economics, though a little familiarity with some of its key concepts would be helpful. He writes clearly about such new approaches as trying to enumerate the “services” nature provides—by which we can ponder what the survival of bees is worth, given their contributions to pollinating crops, and can think about the “existence value” of the great apes. Throughout, Pilling presses the point that the economy, as he writes, “is not real” but instead is shorthand for talking about trillions of transactions; in the same way, GDP “is just a clever way of measuring some of the stuff that we humans get up to.”

A fresh, lightly written look at issues noteworthy for their complexity; just the book for the budding economist in the house.

Pub Date: Jan. 30, 2018

ISBN: 978-0-525-57250-3

Page Count: 320

Publisher: Tim Duggan Books/Crown

Review Posted Online: Nov. 15, 2017

Kirkus Reviews Issue: Dec. 1, 2017

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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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