Economics specialists will enjoy this book, but so too will general readers disenchanted with current economic orthodoxies.

INEQUALITY AND INSTABILITY

A STUDY OF THE WORLD ECONOMY JUST BEFORE THE GREAT CRISIS

A new approach to economic analysis based on the idea that “you can't actually study economic inequality without measuring it.”

Galbraith (Public Affairs, Government and Business Relations/Univ. of Texas; The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too, 2008, etc.) directs both a team at the University of Texas Inequality Project and a group of international experts; their collaborative work resulted in this book. The author presents the results as a new approach to answering two critical questions: How has inequality in a given place changed over time? To what extent is inequality in one area greater than another? Finding appropriate solutions required new methods and new sources of evidence. His team members cross-checked both domestic and international data on earnings, employment and population, and they processed the data using a modern refinement of older econometrics methods, which allowed them to compare global, regional, national and subnational aggregations. Combining macroeconomics and econometrics, they were able to view economic data through a framework that included the effects of financial governance and financial instability. Applying this potentially groundbreaking new methodology, Galbraith discredits a number of shibboleths of the economics profession—e.g., the notion that unemployment in Europe is the result of labor rigidities and social expenditures. He compares economic disparities within Europe to the United States and shows that inequalities in Europe are actually greater. County-level data identifies increasing U.S. inequality as a function of financial markets, with income effects restricted to just 15 counties nationwide. In this rich study, the author brings both transparency and a fresh approach to a profession where a shake-up seems more than overdue.

Economics specialists will enjoy this book, but so too will general readers disenchanted with current economic orthodoxies.

Pub Date: March 30, 2012

ISBN: 978-0-19-985565-0

Page Count: 340

Publisher: Oxford Univ.

Review Posted Online: May 15, 2012

Kirkus Reviews Issue: June 1, 2012

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Striking research showing the immense complexity of ordinary thought and revealing the identities of the gatekeepers in our...

THINKING, FAST AND SLOW

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. 4, 2011

Kirkus Reviews Issue: Sept. 15, 2011

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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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