Economics for People Who Hate Capitalism
So if you’re like me, you’ve spent a lot of time (probably too much time) searching for the perfect introductory guide to economics, something to recommend to people who are interested in learning more about the subject or who, in your own arrogant opinion, would benefit from learning more about the subject. Such a book, to be ideal, would have to meet two criteria:
1) It would have to set forth the sometimes difficult and/or counter-intuitive ideas of economics in a way that is compelling and easy to understand (yet not overly simplistic); and
2) It must be a book that people will actually read.
Sadly, finding a book that meets these criteria is harder than it might appear. I’ve looked at plenty of contenders, but virtually every book I’ve come across has had some major drawback or flaw. Either it’s too technical, or too dated, or it leaves too much out, or most of it is excellent, but there is one part that will turn off anyone who reads it so thoroughly as to nullify any effect the rest of the book might have.
After viewing this episode of Bloggingheads, I’m considering making Filthy Lucre: Economics for People Who Hate Capitalism my standard recommendation, at least for people who are broadly speaking left-of-center. The book’s author, Joseph Heath, is a philosophy professor at the University of Toronto, student of Charles Taylor, expert on Habermas, and author of The Efficient Society: Why Canada is as Close to Utopia as it Gets and The Rebel Sell: How the Counter Culture Became Consumer Culture. Heath is no one’s idea of a right-winger, but he also acknowledges that a lot of arguments made by the left are premised on a faulty understanding of how the economy can and does work.
The book is organized around ten fallacies or myths associated with economics, five of which are common on the left, and five of which are common on the right. Given that the book is aimed more at those on the left, spending half your time talking about absurd arguments for tax cuts might seem like a waste of time, but implicit bargain behind the format seems to be that if you’ll sit through a lecture on how some of your cherished political beliefs are incoherent you’ll get to hear about how your political opponents’ economic beliefs are just as nonsensical. From what I can tell, the ultimate goal of the book is to take people with the politics of Naomi Klein, and transform them into people with the politics of Paul Krugman, which while from my perspective is still far from ideal, is still an improvement.
Of course, it’s dangerous to recommend a book you haven’t read, and I’m not unaware of the possibility that the only reason I can recommend the book is because I have not read it. However, I am about two thirds of the way through The Efficient Society, which seems to cover a lot of the same ground, and based on that plus the Bloggingheads episode linked above, I think I can give the book at least a provisional thumbs up. The main problem, for the time being, seems to be that the book is only available in Canada. Perhaps I can stock up on copies at Indigo the next time I head north to see the Bard in action. Or more likely I can just wait for it to make its way south.
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Looks like it’s sold out in the US. I’ve added all three books to my reading list.
The best intro to economics that I’ve come across is New Ideas from Dead Economists. It comes from a right-of-center POV though.
There are a number of great documentaries and educational videos: Commanding Heights, Free to Choose, Economics U$A.
The book that turned my worldview upside down was Milton Friedman’s Free to Choose.
Economics: Work and Prosperity by Russell Kirk
I am fond of Economics for Real People by Gene Callahan, but it is nakedly Austrian, so no one likes it. Except Austrians.
One of the things I like about Heath is his ability to recast and issue so that people can see it free from some of the biases and preconceptions that they have built up over the years. Talking about corporations as a lending co-op or the state as a club with mandatory and universal membership helps to clarify a lot of things that might otherwise get muddled.
Even before I made the jump to the rest of the post I thought, “Free to Choose”!
Definitely recommend it as a great introductory work to economics.
I’m a Johnny-come-lately again, but these Vox Nova posts come so thick and fast these days, I find it hard to digest even half of them and dispense my valuable wisdom in a timely fashion. Here goes anyhow.
BA sez:
“. . .a lot of arguments made by the left are premised on a faulty understanding of how the economy can and does work.”
And like George Weigel says, those Bishops and the Pope only criticized the Iraq War because they know nothing about world politics.
As far as the economy goes, one can ask, How does it work? and also, How should it work (from an ethical point of view)? Two different questions.
We often hear about “economic realities.” In what sense are these “realities”? More in the sense of the laws of physics or crime statistics?
As a Christian I believe that human “realities” can be changed for the better; I believe in redemption.