Sowell’s economics in a social vacuum is as meaningful as color in the absence of light.
From conservative think-tanker Sowell (The Quest for Cosmic Justice, 1999, etc.), ideological balderdash parading as a disinterested introduction to economics.
“Utter ignorance and gross fallacies” dominate the economic knowledge of the man on the street, thunders Sowell, so he is here to right this wrong with a clear-eyed introduction to the dismal science, free of bell curve and bar graph, and most of all with “nothing to say about the validity of social, moral, or political goals such as ‘affordable housing,’ ‘a living wage’ or ‘social justice.’” Readers can almost feel the spray of his invective, but Sowell claims that these elements play no role in economics, which is “the study of the use of scarce resources which have alternative uses.” The free flow of money and goods in a competitive market is Sowell’s Eden. And he trots out one example after another of how fettering the market will bring ill results: how the homeless of New York would have roofs if there had never been rent control, how “distinguishing discrimination from differences in qualifications and performances is not easy in practice, though the distinction is fundamental in principal,” as if racism were no more institutionalized than his market is value-free. “Monopolies are very hard to maintain without laws to protect the monopoly forms from competition,” is typical Sowell, as if, one, monopolies were foundlings in need of protection and, two, they didn’t get that very protection already. When Sowell reduces economics to the twin concepts of scarcity and the intelligent allocation of resources, he really does seem to think his readers are so “ill-informed and misinformed” as to forget that without society there would be no economics, and that society does sometimes think about the social contract, rights, and protection of the weak.
Sowell’s economics in a social vacuum is as meaningful as color in the absence of light.Pub Date: Feb. 15, 2001
ISBN: 0-465-08138-X
Page Count: 500
Publisher: Basic Books
Review Posted Online: May 19, 2010
Kirkus Reviews Issue: Jan. 15, 2001
BOOK REVIEW
BOOK REVIEW
BOOK REVIEW
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. 28, 2019
Kirkus Reviews Issue: Sept. 15, 2019
SEEN & HEARD
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
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