New Books in Economics

Over the last several podcasts, authors (Stedman Jones, Buchman, and Tienken) have repeatedly evoked neoliberalism. A new book helps to place this term and its meaning in American political history into better context. Michael Lind, the author of Land of Promise: An Economic History of the United States (Harper, 2012), has written a sweeping economic and political history of the United States. He is cofounder of the New American Foundation and policy director of the foundation’s Economic Growth Program. Lind argues that the important divide in the economic intellectual history of the country is between the “developmental tradition” of Hamilton and the “producerist vision” of Jefferson. Major social, political, and economic eras have been defined by competing arguments and victories along that age old argument. Lind takes us up through the present and calls on the Next Social Contract to adjust to the new economic realities of the 21st century. Lind brings a journalist’s style and a wonk’s zeal for detail and argument. His book is provocative and accessible to a wide audience. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

In the “Great Recession,” millions lost their jobs, retirement savings, and even their houses. The entire middle class was shaken. Yet almost no one has been brought to justice. Quite the opposite: the big banks and investment houses–the places where the perpetrators most likely work and worked–were bailed out by the federal government under the banner of being “too big to fail.” Perhaps it’s the case that we will never know enough about what happened to indict anyone, or at least anyone in the upper reaches of the financial industry. But does that mean we don’t, in a general way, know who was responsible? Not according to Hedrick Smith. In his new book Who Stole the American Dream? (Random House, 2012), the veteran reporter digs deep into American political and economic history to find out who we should blame for this colossal economic meltdown. What he found is surprising. The roots of the crisis go back farther than most people–experts included–think. Sure the bankers were involved, but so were politicians (including, of all people Jimmy Carter)–a lot of them. According to Smith, there’s plenty of blame to go around, at least in corporate boardrooms and the corridors of power in Washington. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

When you buy a stock, you’re buying a piece of a company. The funny thing is that most people who own stocks either don’t know that or, if they do, don’t act like owners. They could care less about the business itself. They don’t care whether it turns a profit, how big that profit is, or whether they are going to get a cut of the profit. All they care about is the stock price: up = good; down = bad. According to portfolio manager Daniel Peris, this narrow-minded focus on stock price is a real problem both for companies and the folks like you and me who invest in them. What everyone should be paying attention to, says Peris, is how much companies pay out in dividends to investors. In The Strategic Dividend Investor: Why Slow and Steady Wins the Race(McGrawHill, 2011), Peris lays out the case to investors, urging them to invest in companies that distribute dividends regularly. In The Dividend Imperative: How Dividends Can Narrow the Gap between Main Street and Wall Street (McGrawHill, 2013), he lays out the case to the companies themselves, urging them to stop using their cash to buy their own stock back and instead reward investors with dividends. According to his convincing analysis, a return to dividend payment will benefit both corporations and investors. Listen in and find out why. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

When I was an undergraduate, I was taught that merchants in early modern Western Europe were “proto-capitalists.” I was never quite sure what that meant. If it meant they traded property for money, yes. But that would make everyone who traded things for money over the past, say, 5,000 years, a “proto-capitalist.” If it meant that they thought of their property as capital to be used for maximizing profit, then no. As Martha C. Howell points out in her excellent Commerce Before Capitalism in Europe, 1300-1600 (Cambridge UP, 2010), early modern merchants–at least in the Low Countries–didn’t really think of their property as “capital” at all, and they certainly didn’t use it exclusively for the maximization of profit. Their idea of property was, according to Howell, as much medieval as modern. Essentially, they adapted received (medieval) categories of property to novel commercial conditions. The result was a unique hybrid of the old and new. In hindsight, their understanding of property might seem “proto-capitalist.” But really it was just the way they conceived of property. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Americans seem to be more concerned about economic inequality today than they have been in living memory. The Occupy Movement (“We are the 99%”) is only the most visible sign of this growing unease. But what are the dimensions of inequality in the United States? How have they changed over the past century? Are we living in a new Gilded Age in which the poor are getting poorer and the rich are getting richer? In his “book” (it’s really an innovative website) Growing Apart: A Political History of American Inequality (Institute for Policy Studies, 2013), Colin Gordon sets out to answer these questions. Using an interesting array of charts, graphs, and videos, Gordon tells the story of inequality in the U.S. in modern times. Gordon shows that in recent decades the poor have been getting relatively poorer and the rich have been getting relatively richer. The “gap”–already considerable–is growing. In this interview we discuss growing inequality and the reasons behind it. We also touch on what is perhaps the most important question in the debate: does inequality as it is found in the U.S. really matter economically, spiritually, and politically? Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

I’m Al Emid and I’m back here on New Books Network after a long absence. I had a good excuse though – I was finishing up the book entitled Investing in Frontier Markets, to be released this Fall by John Wiley & Sons and co-authored with Gavin Graham. Barring unforeseen circumstances I will be back here regularly with reviews of timely books in the investing and business categories, which I’ve covered for years as a journalist. And in the business news category, firings, layoffs and forced resignations have occurred frequently for the past five years. Anyone who has recently lost what seemed like a secure job can be forgiven for wondering where he or she went wrong – but in many cases the fault did not lay with the terminated employee. And we can understand how any individual who has fulltime employment might wonder how long that will last. In the past year, blue-chip employers have terminated thousands of employees: 2400 at Dow Chemical, 5400 at American Express, over 4300 at Bank America and even 4000 at Google. The list goes on: United Technologies, Thomson Reuters, Proctor & Gamble and others. And declining revenues don’t always explain the layoffs. In late May ESPN confirmed plans to lay off 400 employees despite an increase in operating income of 8%. ESPN had not had any layoffs since 2009. And we know that positions in the executive suite have become equally uncertain. So in the face of all of this how does one survive? Suzen Fromstein offers some clues in her book Suits and Ladders: Ten Proven Ways to Keep Your Job Safe (Carrick Publishing, 2013) and it contains what she describes as universal survival strategies. Her book is on Amazon Kindle in ebook and paperback versions. Suzen fesses up and says that her own failure to keep her job inspired her book. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

It’s a classic historical question: Why the West and not the Rest? Answers abound. So is there anything new to say about it? According to Prasannan Parthasarathi, there certainly is. He doesn’t go so far as to say that other proposed explanations are flat out wrong, it’s just that they don’t really focus on the narrow forces that, well, forced English business men to innovate in the 18th century. In Why Europe Grew Rich and Asia Did Not: Global Economic Divergence, 1600-1850 (Cambridge University Press, 2012), Parthasarathi says that those forces were economic. English textile merchants were getting trounced by imported Indian cotton. They found that they couldn’t produce cotton goods in the same way the Indians did for all kinds of reasons. So, they had to create a new, more efficient, production process. They did. According to Parthasarath, the “Industrial Revolution” was born out of economic competition and innovation (with, of course, a helping hand from the state). That makes a lot of sense. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Daniel Stedman Jones is the author of Masters of the Universe: Hayek, Friedman, and the Birth of Neoliberal Politics (Princeton University Press, 2012). The book tells a portion of the intellectual history of neoliberalism through a focus on the period of the 1950s through the 1980s. Stedman Jones tracks the development of a set of ideas by Karl Popper, Ludwig von Mises, Friedrich Hayek, and later Milton Friedman, George Stigler, and James Buchanan, first in Europe and then in the United States. This intellectual movement soon becomes a transatlantic political movement, as the leaders of the neoliberal agenda sought to influence policy makers in the UK and US. Policy making in the late 1970s and early 1980s, particularly deregulation and other market-based reforms, reflected the success of the “masters of the universe” to move beyond the academy. The book ends with a reflection on the legacy of neoliberalism in current times. Scholars in political science, public policy, history, and economics would all benefit from the story Stedman Jones tells about the relationship between the history of ideas, politics, and policy. The book was short-listed for the Royal Historical Society, Gladstone Prize. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

Why do we work so hard, and should we? These are the questions that Robert and Edward Skidelsky explore in their thought provoking book How Much is Enough?: Money and the Good Life (Other Press, 2012). Their answer to the first question is (to put it in my own words) that we don’t know any better. Our competitive capitalist culture has taught us to work hard so we can earn more. Further, it has taught us that earning more will be “happier.” It won’t, say the Skidelskys. Their answer to the second question is “no,” full stop. What we should do instead is take advantage of our remarkable wealth, work less,  and live the good life. What is the “good life?” Listen in and find out. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics

In Below the Line: Producers and Production Studies in the New Television Economy (Duke University Press, 2011), Vicki Mayer provides a major theoretical contribution to media production studies. The book self-consciously challenges the idea of the “TV producer” that industry figures and scholars alike often assume. Mayer traces how the “TV producer” category came to be associated with–indeed defined by–creativity and professionalism. Below the Line upends this definition, through four empirical case studies of largely invisible television production: (1) television set assemblers in Brazil, (2) soft-core video cameramen in New Orleans, (3) reality TV casters, and (4) local cable television citizen regulators. The book weaves a theoretical thread through these ethnographic portraits that are themselves framed by political economic analysis of the industry and the broader economy. What once seemed stable–the idea that TV producers are above-the-line creative professionals–lies in elegantly written tatters by the book’s conclusion. Learn more about your ad choices. Visit megaphone.fm/adchoicesSupport our show by becoming a premium member! https://newbooksnetwork.supportingcast.fm/economics