ECONOMICS REIMAGINED

NATURE, PROGRESS AND LIVING STANDARDS

by Rick Teller ‧ RELEASE DATE: Nov. 6, 2023

Teller argues that we are approaching macroeconomics all wrong in this debut nonfiction work.

The point of the Federal Reserve Bank is to ensure stability in the U.S. economy, so why do periods of instability still occur so regularly? Why does it so often seem like the purported experts are unable to accurately predict these downturns? “Mainstream macro looks at the world using faulty ideology and flawed conceptual tools, and, as a result, gets cause and effect wrong,” claims the author, a retired stockbroker and private investor, in his introduction. “This book will explain why they are wrong and show you a better way to understand what happens in the economy. You won’t need an economics degree to follow along.” Unlike microeconomics, which is premised on the highly predictable cause-and-effect relationships of human nature, Teller argues that macroeconomics ignores human nature for the sake of theory. Instead of focusing on measurements such as gross domestic product or income inequalities, the author asserts that economists should make standards of living their main concern when gauging economic success. The author’s primary gripe with government intervention is his belief that “no matter who or what the government taxes, or even if it taxes nobody, nearly the entire cost of government is paid for in the form of reduced living standards for the poor.” Seeking to prove that the science of macroeconomics is no science at all, Teller looks at, among other things, the concept of GDP, the political insulation of the Fed, the realities of inflation, how taxes affect businesses and various income brackets, and the impact of regulation on the economy. By arguing that none of these things work the way we assume they do, he seeks to demonstrate how our vision of macroeconomics—and therefore our attempts to guide the economy—is fundamentally misguided.

Teller succeeds in his first goal, which is to write a nuanced book about the economy that’s nevertheless accessible to general readers. There are no charts or graphs, and very little jargon. The author makes his points using inventive analogies that readers can follow with ease. Here he criticizes job-creating government projects, using the example of the Pyramids of Giza: “Ancient Egypt built pyramids. For the lives of the average Egyptian of the time, it was all a colossal waste of money, not counting whatever psychic benefit they may have had knowing that their taxes went to assuring the current pharaoh’s comfort and status in the afterlife.” His ideas don’t slot neatly into either progressive or conservative economic policy, though a healthy current of libertarianism does run through them. The limits of his dictum—to increase people’s income over all else—sometimes run up against a few obvious obstacles (the chapter on how to deal with climate change—or not—is particularly unconvincing). Whether or not readers are ultimately persuaded by Teller’s evidence, the questions he raises about our collective economic assumptions are well worth considering.

A bold, approachable, and potentially polarizing work of economic theory.

Pub Date: Nov. 6, 2023

ISBN: 9798988307709

Page Count: 354

Publisher: N/A

Review Posted Online: Jan. 2, 2024

Review Program: Kirkus Indie

Categories:

CURRENT EVENTS & SOCIAL ISSUES | GENERAL CURRENT EVENTS & SOCIAL ISSUES | GENERAL NONFICTION