New Books in Economics

The US government is laboring under an enormous debt burden, one that will impact the living standards of future generations of Americans by limiting investment in people and infrastructure. In his new book, Fiscal Therapy: Curing America's Debt Addiction and Investing in the Future (Oxford University Press, 2019), Brookings Institution senior scholar William Gale tackles the challenge head on, addressing what needs to happen to healthcare spending, Social Security, individual taxes, and corporate taxes, in order to make the numbers add up. It makes for sober reading, and the longer we wait, the worse the situation becomes. And the key challenge may not even be fiscal, but political, as the disagreements in Washington over the debt are as deep as the debt is large. Gale ends by making a few simple, inside-Washington suggestions as to how he thinks the political impasse can be broken.Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Whether you are a commuter weighing options of taking the bus vs walking to get you to work on time or a military general leading troops into war, risk is something we deal with every day. Even the most cautious of us can’t opt out—the question is always which risks to take to maximize our results. But how do we know which path is correct? Enter Allison Schrager. Schrager is not a typical economist. Like others, she has spent her career assessing risk, but instead of crunching numbers or sitting at a desk, she chose to venture out. Now, she travels to unexpected places to uncover how financial principles can be used to navigate hazards and prevent danger. In her new book An Economist Walks Into A Brothel And Other Unexpected Places to Understand Risk (Portfolio, 2019), Schrager puts together a five-pronged approach for understanding and assessing risk. First, she helps define what risk and reward mean for individuals. Then, taking into account irrationality and uncertainty, Schrager helps readers master their domains and ultimately get the biggest bang for what she calls the “risk buck.” While there are certain factors that cannot be predicted, An Economist Walks Into A Brothelmarries financial economics with real life examples to provide a road map, offer concrete advice, and maximize payoff. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Robert McNamara is best remembered today for his momentous term as Secretary of Defense in the 1960s. Often overlooked because of this is his even longer tenure as president of the World Bank, one that reflected both the strengths and flaws of McNamara’s leadership. In Robert McNamara’s Other War: The World Bank and International Development (University of Pennsylvania Press, 2017), Patrick Sharma situates McNamara’s tenure within the context of the changes taking place both in international development and in the broader global economy. Sharma describes how in the two decades prior to McNamara’s selection to run it the World Bank was a relatively small institution focused mainly on financing infrastructure projects in the developing world. McNamara brought to the agency a determination to do more, dramatically expanding the number of staff employed and redirecting the focus of the organization towards fighting global poverty. While Sharma details the Bank’s success in expanding its access to financial resources and in establishing a key advisory role in development projects undertaken throughout the world, he also notes the more controversial aspects of McNamara’s time at the Bank, most notably the introduction of structural adjustment funding and the problems this would create for many nations after McNamara left the Bank in 1981. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Are market cities better than people cities? Does the satisfaction that residents take in their city vary from market city to people city? In Market Cities, People Cities: The Shape of Our Urban Future (NYU Press, 2018), Dr. Michael Oluf Emerson and Dr. Kevin T. Smiley identify the kinds of cities people want to live in and the façades strategically placed by city administrators to draw a specific crowd. Emerson and Smiley characterize cities as being somewhere along a spectrum with market city as one extreme and people city as the other extreme. Market cities are inclined to focus on wealth, employment, individualism, and economic opportunity. People cities are more egalitarian, with government investment in infrastructure and an active civil society.In this interview, Dr. Smiley discusses the implications urban design and policy have on environment and on the experience of people who inhabit these two types of cities. He shares that the approach in which a city takes to mitigate and respond to environmental disaster can be a distinguishing characteristic for labeling a city as market city or people city. Each city lies somewhere along the spectrum and likely does not land on either extreme. An interesting find, however, that Dr. Smiley bore out is that inhabitants of both market cities and people cities tend to be generally satisfied with their place of residence.Michael O. Johnston is an Assistant Professor of Sociology at William Penn University. He is currently conducting research on the continuous process that occurs with placemaking at farmers’ market. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Guilds were prominent in medieval and early modern Europe, but their economic role has seldom been studied. In The European Guilds: An Economic Analysis (Princeton University Press, 2019), Sheilagh Ogilvie offers a wide-ranging examination of what guilds did and how they affected pre-modern economies. As Ogilvie explains, guilds were particularized institutions which created and enforced privileges for their members while denying them to outsiders. This authority was granted to them by rulers and governments, and depended on their intricate relationship with the public authorities. Their privileges entitled guilds to determine who could participate in a profession, the quality of the items their members produced, and the technological innovations their members could adopt. Ogilvie looks at all aspects of guild activities to show their wide-ranging impact on the economies of their time, and the ways they pursued their members’ interests even when it stifled growth for the rest of society. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

In the information age, knowledge is power. Hence, facilitating the access to knowledge to wider publics empowers citizens and makes societies more democratic. How can publishers and authors contribute to this process? This podcast addresses this issue. We interview Professor Austin Choi-Fitzpatrick, whose book, The Good Drone: How Social Movements Democratize Surveillance (forthcoming with MIT Press) is undergoing a Massive Online Peer-Review (MOPR) process, where everyone can make comments on his manuscript. Additionally, his book will be Open Access (OA) since the date of publication. We discuss with him how do MOPR and OA work, how he managed to combine both of them and how these initiatives can contribute to the democratization of knowledge.You can participate in the MOPR process of The Good Drone through this link: https://thegooddrone.pubpub.org/Felipe G. Santos is a PhD candidate at the Central European University. His research is focused on how activists care for each other and how care practices within social movements mobilize and radicalize heavily aggrieved collectives. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Our guest today is Kartik Hosanagar, the author of A Human’s Guide to Machine Intelligence: How Algorithms Are Shaping Our Lives and How We Can Stay in Control(Viking, 2019). This is one of those rare books that I think everyone can read and I think everyone should read. In fact, knowledge of algorithms can in some sense be considered to be the literacy of the 21st century, and the author has written a book which can greatly held advance this type of literacy. If you want to become 21st-century literate, you should read this instructive and immensely enjoyable book. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

If you are reading this, you have probably run into the "Chicago" model at some point or another, in terms of public policy, orthodox modern finance, macro or micro economics, or any other arena where theoretical abstractions about human behavior (generally but not exclusively about or derived from economics) have been turned into specific and often highly rigid and mechanistic policy guidelines. That's the Chicago model.  In Where Economics Went Wrong: Chicago's Abandonment of Classical Liberalism(Princeton University Press, 2018), David Colander and Craig Freedman track the transition from the great Classical economists, who went to great lengths to make clear that their abstractions had little direct relevance to policy or would-be policy, to the 20th-century giants at the University of Chicago (Friedman, Stigler, Director), who found themselves responding to aggressive claims from other economists engaged in policy and politics, as well the broader context of ideological challenges to the free market system championed in the West.  Their answer was a robust defense of the market and rejection of government involvement in almost all human affairs.Colander and Freedman stay more or less neutral on the ideology; their topic is the methodology.  Is abstract economic thought fit for specific policy application or not? John Stuart Mill thought not. David Ricardo and Adam Smith engaged the issue.  The Chicago School said sure to policy prescriptions, especially if they countered government involvement championed by economists of different leanings. Whether or not you are an admirer of the Chicago model, you will want to make sure you understand the methodological transition that brought their Ivory Tower views into your everyday affairs.Daniel Peris is Senior Vice President at Federated Investors in Pittsburgh. Trained as a historian of modern Russia, he is the author most recently of Getting Back to Business: Why Modern Portfolio Theory Fails Investors. You can follow him on Twitter @Back2BizBook or at http://www.strategicdividendinvestor.com Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Leif Wenar the Chair of Philosophy and Law at Kings College London. He is the author of the 2016 book Blood Oil: Tyrants, Violence, and the Rules that Run the World. This book has led to the publication, in 2018, of a companion volume, Beyond Blood Oil: Philosophy, Policy, and the Future.The "Why We Argue" podcast is produced by the Humanities Institute at the University of Connecticut as part of the Humility and Conviction in Public Life project. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

The Crossroads of Globalization. A Latin American View (World Scientific Publishing Co. 2019) explores the complex interaction of several forces shaping the current world economic situation. Alfredo Toro Hardy analyzes the leadership of China and the economic strength of Asia, transnational companies, and international organizations like the IMF as forces in favor of globalization, while populism, and the Fourth Industrial Revolution are part of the anti-globalization trend.  By giving a worldwide context, the author situates Latin America as a region that is facing several challenges in order do be part of a phenomenon that is developing with uncertain outcomes. Toro Hardy also provides some of the paths the region could follow in the near future.  Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics