A masterful study to be read and reread by anyone interested in today's political economy.



A comprehensive analysis of “one of the most fundamental questions about American economic history.”

Gordon (Social Sciences/Northwestern Univ.; Macroeconomics, 2008, etc.), a respected macroeconomist, provides a groundbreaking contribution to political economy. His emphasis is quite different from the familiar concerns of budget deficits and quarterly profits. He compares the growth of real wages, living standards, and innovations in technology over two periods: 1870 to 1940 and 1940 to 1970. The author identifies advances in lifestyles, and he establishes that New Deal labor policies, which caused real wages to rise faster than productivity, laid the foundation for “the Great Leap Forward” in the middle of the 20th century. The author also shows how horse-drawn streetcars and steam-powered trains expanded urban activities, and he examines how electrification and the internal combustion engine powered the Second Industrial Revolution. Gordon is primarily concerned with the quality of these successive improvements—which, he writes, “are missing from GDP altogether”—as well as the consumer price index, which tracks current sales and prices. “Our measure of capital input,” he writes, “is newly developed for this book and adjusts for the unusual aspects of investment behavior during the 1930s and 1940s.” The author uses his fresh methods to back his argument for the primary significance of the reforms that took place during the New Deal. These policies, many of which are now considered failures, are thus shown to have provided the groundwork for what was to come. This Great Leap Forward generated the momentum that continued into the 1970s. The book is not for general readers, but students and scholars in economics and American history will find within these pages much illuminating interpretation of a massive amount of data.

A masterful study to be read and reread by anyone interested in today's political economy.

Pub Date: Jan. 26, 2016

ISBN: 978-0-691-14772-7

Page Count: 776

Publisher: Princeton Univ.

Review Posted Online: Nov. 4, 2015

Kirkus Reviews Issue: Nov. 15, 2015

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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. 4, 2011

Kirkus Reviews Issue: Sept. 15, 2011

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Occasionally wonky but overall a good case for how the dismal science can make the world less—well, dismal.


“Quality of life means more than just consumption”: Two MIT economists urge that a smarter, more politically aware economics be brought to bear on social issues.

It’s no secret, write Banerjee and Duflo (co-authors: Poor Economics: A Radical Rethinking of the Way To Fight Global Poverty, 2011), that “we seem to have fallen on hard times.” Immigration, trade, inequality, and taxation problems present themselves daily, and they seem to be intractable. Economics can be put to use in figuring out these big-issue questions. Data can be adduced, for example, to answer the question of whether immigration tends to suppress wages. The answer: “There is no evidence low-skilled migration to rich countries drives wage and employment down for the natives.” In fact, it opens up opportunities for those natives by freeing them to look for better work. The problem becomes thornier when it comes to the matter of free trade; as the authors observe, “left-behind people live in left-behind places,” which explains why regional poverty descended on Appalachia when so many manufacturing jobs left for China in the age of globalism, leaving behind not just left-behind people but also people ripe for exploitation by nationalist politicians. The authors add, interestingly, that the same thing occurred in parts of Germany, Spain, and Norway that fell victim to the “China shock.” In what they call a “slightly technical aside,” they build a case for addressing trade issues not with trade wars but with consumption taxes: “It makes no sense to ask agricultural workers to lose their jobs just so steelworkers can keep theirs, which is what tariffs accomplish.” Policymakers might want to consider such counsel, especially when it is coupled with the observation that free trade benefits workers in poor countries but punishes workers in rich ones.

Occasionally wonky but overall a good case for how the dismal science can make the world less—well, dismal.

Pub Date: Nov. 12, 2019

ISBN: 978-1-61039-950-0

Page Count: 432

Publisher: PublicAffairs

Review Posted Online: Aug. 29, 2019

Kirkus Reviews Issue: Sept. 15, 2019

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