New Books in Economics

Jim Russell is a sociologist and it was his encounter with the hidden realities of his own 401(k) retirement plan that touched off his crusade to demystify for himself, and then others, just what was at stake in the options presented by private and public retirement plans. In Social Insecurity: 401(k)s and the Retirement Crisis (Beacon Press, 2014), he puts into plain language for ordinary Americans the arcane terminology used by retirement-fund managers, and uses his own real-life experiences to build an empathetic bond with anxiety-laden readers. Russell moves seamlessly between the personal and political, the present and past, the domestic and global. The holism of his sociology is Russell’s strongest suit. With admirable succinctness and clarity–this is economics for the-rest-of-us–he recounts the Chicago-school economics that spawned the right-wing privatization movement. He then situates in the emergence of neoliberalism the corporate campaign to move billions of dollars from American pension accounts under pubic and labor union control into private hands. Turns out, the privatization of pension funds is not just an accompanying feature of global neoliberal strategy but the bull’s eye of the target, ground zero of the attack on centrally planned economies like Chile’s under Allende, and the former Soviet Republics. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Brett Scott is the author of The Heretic’s Guide to Global Finance: Hacking the Future of Money (Pluto Press, 2013). Scott is a journalist, urban deep ecologist, and Fellow at the Finance Innovation Lab. While much of Scott’s book focuses on explaining various aspects of the financial services section, the heart of the book is a call to action. Scott infuses this call with a variety of first-hand experiences as a campaigner for radical approaches to disrupt the sector. For this reason, the book acts as a guide to activism, applicable for those interested in global finance, but also other domains that are ripe for criticism. His blog that he mentions at the end of the podcast can be found here. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Americans are very politically divided. Democrats say we need a more powerful welfare state while Republicans say we need to maintain the free market. The struggle, we are constantly informed, is one of ideas. And that it is in the worst possible sense, for neither the Democrats nor Republicans seem interested in evidence. They don’t want the facts to get in the way of their arguments. In his remarkable book The Political Economy of Human Happiness: How Voters’ Choices Determine the Quality of Life (Cambridge University Press, 2013), Benjamin Radcliff provides facts that should help both Democrats and Republicans, despite their many differences, decide how to proceed. He asks a simple, compelling question: do conservative or liberal public policies make people happier? After an extensive and sophisticated analysis of the data, he reaches an equally simple, compelling answer: liberal policies do. Radcliff is a great friend of the free market; it is obvious, he says, that capitalism is the best economic system we have at our disposal. But he is also pragmatic: all the evidence shows that free markets alone don’t make people as happy as markets combined with robust welfare and labor-protection programs. There is a lesson here for both Democrats and Republicans. Listen up. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Much of the progress in technology today has come about as a result of innovators who did not seek prior approval from regulatory bodies and such. Yet, even with the beneficial results from innovations like the commercial Internet, mobile technologies, and social networks, a disposition exists to be overly cautious with respect to new things.  Adam Thierer calls this the “precautionary principle” in his new book Permissionless Innovation: The Continuing Case for Comprehensive Technological Freedom (Mercatus Center, 2014). The “precautionary principle”–which, Thierer argues, is based on fear and concern about loss of control–limits the creativity inherent in unfettered tinkering. In contrast, Thierer advocates “permissionless innovation,” an attitude that would allow experimentation to continue without hinderance. Of course does not mean that there is no use for policies for new technology, as some developments require regulation. Policymakers should, however, take a “wait and see” approach to setting rules for innovative products. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Nicholas Carnes is the author of White-Collar Government: The Hidden Role of Class in Economic Policy Making (University of Chicago Press, 2013). Carnes is an assistant professor of public policy in the Sanford School of Public Policy at Duke University. There is surprisingly little in the research literature on the link between social class and legislative behavior. For a topic that seems so ripe for investigation, Carnes’ data collection and analysis open new ground and answer pressing questions. He shows that formerly blue collar workers who serve in Congress behave differently than formerly white collar workers. Blue collar workers are in the extreme minority in numbers, meaning their efforts to pass legislation that tilts towards the working class are often stymied. Carnes offers fresh insight into why this matters for representation more generally and several recommendations for how to rectify this in the future. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

In 1927 Russian-American legal theorist Alexander Sack introduced the doctrine of “odious debt.” Sack argued that a state’s debt is “odious” and should not be transferable to successor governments after a revolution, if it was incurred without the consent of the people; and not for their benefit. This doctrine has largely been rejected, with a firm presumption of “sovereign continuity” emerging instead: post-revolutionary governments must repay sovereign debt even if it was incurred to cover the personal expenses of plutocrats. If they fail to do so, their credit reputation is harmed. As Odette Lienau explains in a striking line, “we can now imagine prosecuting the leaders of a fallen regime for crimes against a state’s population while simultaneously asking that population to acknowledge and repay the fallen regime’s debts.” In Rethinking Sovereign Debt: Politics, Reputation, and Legitimacy in Modern Finance (Harvard University Press, 2014), Lienau unfolds the historical conditions from which this seeming inconsistency emerged. Seamlessly moving between case studies from the early 20th century to the present, Lienau discusses several different versions of this puzzle. Ultimately, Lienau ends up rejecting “sovereign continuity,” and arguing for the recognition of “principled default.” With revolutions and uprisings across the Middle East, and in Ukraine, this book’s argument will likely provoke lively discussion among lawyers, economists, political theorists, and historians. But lay people should ideally engage with the ideas as well. The book gives an extraordinary point of access into what is at stake in the work of enormous international organizations, such as the World Bank. *Photo by Frank DiMeo Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

The British Marxist economist Maurice Dobb is now largely forgotten. That’s too bad for a number of reasons. He was a brilliant thinker who wrote some of the most insightful analyses of the development and workings of capitalism around. You can still read his work and profit. He was the intellectual godfather of several notable British Marxist historians of the “New Left” of the 1960s and 1970s: Rodney Hilton, Christopher Hill, E.P. Thompson, among others. And, perhaps most importantly, his life gives us a window into a forgotten time, one in which a economists took communism seriously and fellows at Cambridge could earnestly believe in a bright communist future. This, I think, is a time we must not forget. Thanks to Timothy Shenk‘s well-researched, readable biography Maurice Dobb: Political Economist (Palgrave-Macmillan, 2013), we won’t have to. Shenk tells Dobb’s tale in all its tortured complexity. A member of the establishment and an anti-establishmentarian. A dyed-in-the-wool Marxist and a deadly serious empirically-oriented economist. A supporter of the Soviet Union and a critic of Soviet power. Listen in. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

The cultural and material history of what is fashionable or “trendy” can be particularly revealing about the time period under study. The most recent work that underscores this point is Jennifer Anderson‘s Mahogany: The Cost of Luxury in Early America (Harvard University Press, 2012).  Anderson traces the popularity of mahogany wood in the mid eighteenth century from its use in England–a matter of necessity due to wood shortages–to its elective use in the American colonies among elite classes as a measure of cultural and social refinement. Unlike ephemeral goods like sugar and tobacco (which were purchased by elites but consumed and discarded shortly thereafter) mahogany was something solid, something lasting, something passed down to subsequent generations. Social engagements revolved around mahogany. Elites coveted the intricate and ornate furnishings, which because of mahogany’s incredible density, could only be crafted with mahogany. Even the middling classes would indulge in purchasing a mahogany piece, if the financial possibility presented itself. To be sure, this book offers much more than a dissection of the social and cultural worlds of Early America. Anderson tells the darker, often hidden story, of human and environmental exploitation. Following mahogany from the slave hands that felled the trees in the West Indies to the polished products decorating the posh estates of the wealthiest colonists offers a unique insight into a dynamic range of historical characters. By doing so, Professor Anderson deftly blends the social story with the environmental history and the history of capitalism. Jennifer L. Anderson is Associate Professor of History at State University of New York, Stony Brook. Her current research focuses on reinterpreting the human and environmental history of Long Island within the broader Atlantic context. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Aswin Punthamabekar‘s From Bombay to Bollywood: The Making of a Global Media Industry (New York University Press, 2013) offers a deeply researched and richly theorized look at the evolution of the world’s largest film industry over the past few decades. Combining ethnographic research with close textual analyses of Bollywood films, Punthamabekar shows how the media industry’s growth has been complexly intertwined with India’s emerging place in the global economy. The book offers a nuanced look at globalization, bringing to light the tensions and productivities that emerge when a highly powerful, historically localized industry enters the world of multinational capitalism. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Pedro Oliveira provides a fascinating glimpse into his transition from academia into consultancy, with a guide for those like minded to boot. People-Centered Innovation: Becoming a Practitioner in Innovation Research (Biblio Publishing, 2013) chronicles Oliveira’s journey from his work as a clinical psychologist in Portugal, to becoming an anthropologist in the UK, and moving into the world of business and innovation. Written for a general audience, this book is a mix of case studies, theory for practitioners, and autobiographical information that shows how to apply work in the social sciences to the problems facing businesses today. This is a great read for anyone interested in psychology and anthropology, as well as how business and innovation is changing due to the influence of the humanistic sciences. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics