23 Things They Don't Tell You about Capitalism


Ha-Joon Chang - 2010
    Thing 4: The washing machine has changed the world more than the Internet. Thing 5: Assume the worst about people, and you get the worst. Thing 13: Making rich people richer doesn't make the rest of us richer.If you've wondered how we did not see the economic collapse coming, Ha-Joon Chang knows the answer: We didn't ask what they didn't tell us about capitalism. This is a lighthearted book with a serious purpose: to question the assumptions behind the dogma and sheer hype that the dominant school of neoliberal economists-the apostles of the freemarket-have spun since the Age of Reagan.Chang, the author of the international bestseller Bad Samaritans, is one of the world's most respected economists, a voice of sanity-and wit-in the tradition of John Kenneth Galbraith and Joseph Stiglitz. 23 Things They Don't Tell You About Capitalism equips readers with an understanding of how global capitalism works-and doesn't. In his final chapter, "How to Rebuild the World," Chang offers a vision of how we can shape capitalism to humane ends, instead of becoming slaves of the market.Ha-Joon Chang teaches in the Faculty of Economics at the University of Cambridge. His books include the bestselling Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism. His Kicking Away the Ladder received the 2003 Myrdal Prize, and, in 2005, Chang was awarded the Leontief Prize for Advancing the Frontiers of Economic Thought.

The Uninhabitable Earth: Life After Warming


David Wallace-Wells - 2019
    If your anxiety about global warming is dominated by fears of sea-level rise, you are barely scratching the surface of what terrors are possible. In California, wildfires now rage year-round, destroying thousands of homes. Across the US, "500-year" storms pummel communities month after month, and floods displace tens of millions annually.This is only a preview of the changes to come. And they are coming fast. Without a revolution in how billions of humans conduct their lives, parts of the Earth could become close to uninhabitable, and other parts horrifically inhospitable, as soon as the end of this century.In his travelogue of our near future, David Wallace-Wells brings into stark relief the climate troubles that await--food shortages, refugee emergencies, and other crises that will reshape the globe. But the world will be remade by warming in more profound ways as well, transforming our politics, our culture, our relationship to technology, and our sense of history. It will be all-encompassing, shaping and distorting nearly every aspect of human life as it is lived today.Like An Inconvenient Truth and Silent Spring before it, The Uninhabitable Earth is both a meditation on the devastation we have brought upon ourselves and an impassioned call to action. For just as the world was brought to the brink of catastrophe within the span of a lifetime, the responsibility to avoid it now belongs to a single generation.

Lords of Finance: The Bankers Who Broke the World


Liaquat Ahamed - 2009
    In fact, as Liaquat Ahamed reveals, it was the decisions taken by a small number of central bankers that were the primary cause of the economic meltdown, the effects of which set the stage for World War II and reverberated for decades. In Lords of Finance, we meet the neurotic and enigmatic Montagu Norman of the Bank of England, the xenophobic and suspicious Émile Moreau of the Banque de France, the arrogant yet brilliant Hjalmar Schacht of the Reichsbank, and Benjamin Strong of the Federal Reserve Bank of New York, whose façade of energy and drive masked a deeply wounded and overburdened man. After the First World War, these central bankers attempted to reconstruct the world of international finance. Despite their differences, they were united by a common fear—that the greatest threat to capitalism was inflation— and by a common vision that the solution was to turn back the clock and return the world to the gold standard. For a brief period in the mid-1920s they appeared to have succeeded. The world’s currencies were stabilized and capital began flowing freely across the globe. But beneath the veneer of boom-town prosperity, cracks started to appear in the financial system. The gold standard that all had believed would provide an umbrella of stability proved to be a straitjacket, and the world economy began that terrible downward spiral known as the Great Depression. As yet another period of economic turmoil makes headlines today, the Great Depression and the year 1929 remain the benchmark for true financial mayhem. Offering a new understanding of the global nature of financial crises, Lords of Finance is a potent reminder of the enormous impact that the decisions of central bankers can have, of their fallibility, and of the terrible human consequences that can result when they are wrong.

Economics in One Lesson: The Shortest & Surest Way to Understand Basic Economics


Henry Hazlitt - 1946
    But it is also much more, having become a fundamental influence on modern “libertarian” economics of the type espoused by Ron Paul and others.Considered among the leading economic thinkers of the “Austrian School,” which includes Carl Menger, Ludwig von Mises, Friedrich (F.A.) Hayek, and others, Henry Hazlitt (1894-1993), was a libertarian philosopher, an economist, and a journalist. He was the founding vice-president of the Foundation for Economic Education and an early editor of The Freeman magazine, an influential libertarian publication.  Hazlitt wrote Economics in One Lesson, his seminal work, in 1946. Concise and instructive, it is also deceptively prescient and far-reaching in its efforts to dissemble economic fallacies that are so prevalent they have almost become a new orthodoxy.Many current economic commentators across the political spectrum have credited Hazlitt with foreseeing the collapse of the global economy which occurred more than 50 years after the initial publication of Economics in One Lesson. Hazlitt’s focus on non-governmental solutions, strong — and strongly reasoned — anti-deficit position, and general emphasis on free markets, economic liberty of individuals, and the dangers of government intervention make Economics in One Lesson, every bit as relevant and valuable today as it has been since publication.

The Great Deformation: The Corruption of Capitalism in America


David A. Stockman - 2013
    It counters conventional wisdom with an eighty-year revisionist history of how the American state—especially the Federal Reserve—has fallen prey to the politics of crony capitalism and the ideologies of fiscal stimulus, monetary central planning, and financial bailouts. These forces have left the public sector teetering on the edge of political dysfunction and fiscal collapse and have caused America's private enterprise foundation to morph into a speculative casino that swindles the masses and enriches the few.Defying right- and left-wing boxes, David Stockman provides a catalogue of corrupters and defenders of sound money, fiscal rectitude, and free markets. The former includes Franklin Roosevelt, who fathered crony capitalism; Richard Nixon, who destroyed national financial discipline and the Bretton Woods gold-backed dollar; Fed chairmen Greenspan and Bernanke, who fostered our present scourge of bubble finance and addiction to debt and speculation; George W. Bush, who repudiated fiscal rectitude and ballooned the warfare state via senseless wars; and Barack Obama, who revived failed Keynesian “borrow and spend” policies that have driven the national debt to perilous heights. By contrast, the book also traces a parade of statesmen who championed balanced budgets and financial market discipline including Carter Glass, Harry Truman, Dwight Eisenhower, Bill Simon, Paul Volcker, Bill Clinton, and Sheila Bair.Stockman's analysis skewers Keynesian spenders and GOP tax-cutters alike, showing how they converged to bloat the welfare state, perpetuate the military-industrial complex, and deplete the revenue base—even as the Fed's massive money printing allowed politicians to enjoy “deficits without tears.” But these policies have also fueled new financial bubbles and favored Wall Street with cheap money and rigged stock and bond markets, while crushing Main Street savers and punishing family budgets with soaring food and energy costs. The Great Deformation explains how we got here and why these warped, crony capitalist policies are an epochal threat to free market prosperity and American political democracy.

The Physics of Wall Street: A Brief History of Predicting the Unpredictable


James Owen Weatherall - 2013
    While many of the mathematicians and software engineers on Wall Street failed when their abstractions turned ugly in practice, a special breed of physicists has a much deeper history of revolutionizing finance. Taking us from fin-de-siècle Paris to Rat Pack-era Las Vegas, from wartime government labs to Yippie communes on the Pacific coast, Weatherall shows how physicists successfully brought their science to bear on some of the thorniest problems in economics, from options pricing to bubbles.The crisis was partly a failure of mathematical modeling. But even more, it was a failure of some very sophisticated financial institutions to think like physicists. Models—whether in science or finance—have limitations; they break down under certain conditions. And in 2008, sophisticated models fell into the hands of people who didn’t understand their purpose, and didn’t care. It was a catastrophic misuse of science.The solution, however, is not to give up on models; it's to make them better. Weatherall reveals the people and ideas on the cusp of a new era in finance. We see a geophysicist use a model designed for earthquakes to predict a massive stock market crash. We discover a physicist-run hedge fund that earned 2,478.6% over the course of the 1990s. And we see how an obscure idea from quantum theory might soon be used to create a far more accurate Consumer Price Index.Both persuasive and accessible, The Physics of Wall Street is riveting history that will change how we think about our economic future.

Silent Spring


Rachel Carson - 1962
    The book documents the adverse environmental effects caused by the indiscriminate use of pesticides. Carson accused the chemical industry of spreading disinformation, and public officials of accepting the industry's marketing claims unquestioningly.The book appeared in September 1962 and the outcry that followed its publication forced the banning of DDT and spurred revolutionary changes in the laws affecting our air, land, and water. Carson’s book was instrumental in launching the environmental movement.

The Case for the Green New Deal


Ann Pettifor - 2019
    In 2008, the first Green New Deal was devised by Pettifor and a group of English economist and thinkers, but was ignored within the tumults of the financial crash. A decade later, the ideas was revived within the democratic socialists in the US, forefront by Alexandria Ocasio Cortez. The Green New Deal demands a radical and urgent reversal of the current state of the global economy: including total de-carbonisation and a commitment to fairness and social justice. Critics on all sides have been quick to observe that the GND is a pipe dream that could never be implemented, and would cost the earth. But, as Ann Pettifor shows, we need to rethink the function of money, and how it works within the global system. How can we bail out the banks but not the planet? We have to stop thinking about the imperative of economic growth-nothing grows for ever. The program will be a long term project but it needs to start immediately.

Principles of Economics


N. Gregory Mankiw - 1997
    The author's conversational writing style presents the politics and science of economic theories to tomorrow's decision-makers.

Economic Facts and Fallacies


Thomas Sowell - 2007
    These include many beliefs widely disseminated in the media and by politicians, such as mistaken ideas about urban problems, income differences, male-female economic differences, as well as economics fallacies about academia, about race, and about Third World countries. One of the themes of Economic Facts and Fallacies is that fallacies are not simply crazy ideas but in fact have a certain plausibility that gives them their staying power-and makes careful examination of their flaws both necessary and important, as well as sometimes humorous. Written in the easy-to-follow style of the author's Basic Economics, this latest book is able to go into greater depth, with real world examples, on specific issues.

Requiem for a Species: Why We Resist the Truth about Climate Change


Clive Hamilton - 2010
    There have been any number of books and reports in recent years explaining just how dire the future looks and how little time we have left to act. This book is about why we have ignored those warnings, and why it is now too late. It is a book about the frailties of the human species as expressed in both the institutions we built and the psychological dispositions that have led us on the path of self-destruction. It is about our strange obsessions, our hubris, and our penchant for avoiding the facts. It is the story of a battle within us between the forces that should have caused us to protect the Earth - our capacity to reason and our connection to Nature - and those that, in the end, have won out - our greed, materialism and alienation from Nature. And it is about the 21st century consequences of these failures. Clive Hamilton is author of the bestselling Affluenza and Growth Fetish, of Scorcher, and most recently Freedom Paradox.

This Time Is Different: Eight Centuries of Financial Folly


Carmen M. Reinhart - 2009
    Each time, the experts have chimed, "this time is different"--claiming that the old rules of valuation no longer apply and that the new situation bears little similarity to past disasters. With this breakthrough study, leading economists Carmen Reinhart and Kenneth Rogoff definitively prove them wrong. Covering sixty-six countries across five continents, This Time Is Different presents a comprehensive look at the varieties of financial crises, and guides us through eight astonishing centuries of government defaults, banking panics, and inflationary spikes--from medieval currency debasements to today's subprime catastrophe. Carmen Reinhart and Kenneth Rogoff, leading economists whose work has been influential in the policy debate concerning the current financial crisis, provocatively argue that financial combustions are universal rites of passage for emerging and established market nations. The authors draw important lessons from history to show us how much--or how little--we have learned. Using clear, sharp analysis and comprehensive data, Reinhart and Rogoff document that financial fallouts occur in clusters and strike with surprisingly consistent frequency, duration, and ferocity. They examine the patterns of currency crashes, high and hyperinflation, and government defaults on international and domestic debts--as well as the cycles in housing and equity prices, capital flows, unemployment, and government revenues around these crises. While countries do weather their financial storms, Reinhart and Rogoff prove that short memories make it all too easy for crises to recur. An important book that will affect policy discussions for a long time to come, This Time Is Different exposes centuries of financial missteps.

Losing Earth: A Recent History


Nathaniel Rich - 2018
    Over the next decade, a handful of scientists, politicians, and strategists, led by two unlikely heroes, risked their careers in a desperate, escalating campaign to convince the world to act before it was too late. Losing Earth is their story, and ours.The New York Times Magazine devoted an entire issue to Nathaniel Rich's groundbreaking chronicle of that decade, which became an instant journalistic phenomenon--the subject of news coverage, editorials, and conversations all over the world. In its emphasis on the lives of the people who grappled with the great existential threat of our age, it made vivid the moral dimensions of our shared plight.Now expanded into book form, Losing Earth tells the human story of climate change in even richer, more intimate terms. It reveals, in previously unreported detail, the birth of climate denialism and the genesis of the fossil fuel industry's coordinated effort to thwart climate policy through misinformation propaganda and political influence. The book carries the story into the present day, wrestling with the long shadow of our past failures and asking crucial questions about how we make sense of our past, our future, and ourselves.Like John Hersey's Hiroshima and Jonathan Schell's The Fate of the Earth, Losing Earth is the rarest of achievements: a riveting work of dramatic history that articulates a moral framework for understanding how we got here, and how we must go forward.

Plenitude: The New Economics of True Wealth


Juliet B. Schor - 2010
    Schor presents a revolutionary strategy for transitioning toward a richer, more balanced life. In "Plenitude" economist and bestselling author Juliet B. Schor offers a groundbreaking intellectual statement about the economics and sociology of ecological decline, suggesting a radical change in how we think about consumer goods, value, and ways to live. Humans are degrading the planet far faster than they are regenerating it. As we travel along this shutdown path, food, energy, transport, and consumer goods are becoming increasingly expensive. The economic downturn that has accompanied the ecological crisis has led to another type of scarcity: incomes, jobs, and credit are also in short supply. Our usual way back to growth-a debt-financed consumer boom- is no longer an option our households, or planet, can afford. Responding to our current moment, "Plenitude" puts sustainability at its core, but it is not a paradigm of sacrifice. Instead, it's an argument that through a major shift to new sources of wealth, green technologies, and different ways of living, individuals and the country as a whole can actually be better off and more economically secure. And as Schor observes, Plenitude is already emerging. In pockets around the country and the world, people are busy creating lifestyles that offer a way out of the work and spend cycle. These pioneers' lives are scarce in conventional consumer goods and rich in the newly abundant resources of time, information, creativity, and community. Urban farmers, do-it-yourself renovators, Craigslist users-all are spreading their risk and establishing novel sources of income and outlets for procuring consumer goods. Taken together, these trends represent a movement away from the conventional market and offer a way toward an efficient, rewarding life in an era of high prices and traditional resource scarcity. Based on recent developments in economic theory, social analysis, and ecological design as well as evidence from the cutting-edge people and places putting these ideas into practice, "Plenitude" is a road map for the next two decades. In encouraging us to value our gifts- nature, community, intelligence, and time-Schor offers the opportunity to participate in creating a world of wealth and well-being.

The Growth Delusion: Wealth, Poverty, and the Well-Being of Nations


David Pilling - 2018
    Ultimately, it is the perceived health of the economy which determines how much we can spend on our schools, highways, and defense; economists decide how much unemployment is acceptable and whether it is right to print money or bail out profligate banks.  The backlash we are currently witnessing suggests that people are turning against the experts and their faulty understanding of our lives. Despite decades of steady economic growth, many citizens feel more pessimistic than ever, and are voting for candidates who voice undisguised contempt for the technocratic elite. For too long, economics has relied on a language which fails to resonate with people's actual experience, and we are now living with the consequences. In this powerful, incisive book, David Pilling reveals the hidden biases of economic orthodoxy and explores the alternatives to GDP, from measures of wealth, equality, and sustainability to measures of subjective wellbeing. Authoritative, provocative, and eye-opening, The Growth Delusion offers witty and unexpected insights into how our society can respond to the needs of real people instead of pursuing growth at any cost.