what you get here

This is not a blog which opines on current events. It rather uses incidents, books (old and new), links and papers to muse about our social endeavours.
So old posts are as good as new! And lots of useful links!

The Bucegi mountains - the range I see from the front balcony of my mountain house - are almost 120 kms from Bucharest and cannot normally be seen from the capital but some extraordinary weather conditions allowed this pic to be taken from the top of the Intercontinental Hotel in late Feb 2020
Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Monday, August 7, 2023

How do we know what we know?

Positivism is the view that all knowledge is derived by reason and logic from sensory experience. Other ways of knowing, such as theology or intuition are rejected. Of course, post-modernity has been with us for some time but the social sciences – and economics in particular – had been pretty resistant to its influence

But positivism seems to have slipped out of favour in recently-published books. I noticed it first in my own field with the publication in 2017 of Philosophy and Public Administration; an introduction by Edoardo Ongaro which deals with the question never raised in social science textbooks “how do we know what we think we know”?

If I had been paying more attention to what was happening in the management field, I would have noticed Strategic Management and organisational dynamics” by Ralph Stacey and Chris Mowles first published as far back as 1993; Chris Mowles’ “Rethinking management” (2011) and “Management and Uncertainty” (2015); and “Rethinking Management – confronting the roots and consequences of current theory and practice” by N Douglas and T Wykovski (2017), Stacey and Mowles put it very well

There are a number of different, contradictory ways of explaining how human beings come to know anything. Furthermore, there is no widespread agreement as to which of these explanations is ‘true’ or even most useful.

The realist position probably commands most support amongst natural scientists and those social scientists, probably the majority, who seek the same status for their field as is accorded to the natural sciences.

Social constructionists point to a significant difference between natural and social phenomena. Humans interpret natural phenomena, those phenomena do not interpret themselves. However, when it comes to human phenomena, we are dealing with ourselves, phenomena that are already interpreting themselves. Many constructionists hold, therefore, that while the traditional scientific approach might be applicable in the natural sciences it is not in the human sciences.

Pragmatists are keen to identify those aspects of scientific method, contestation for example, which are common to both natural and social sciences.

Both our understanding of reality, and the categories which we develop to understand it, evolve over time informed by our experience of living in the world and in debate and contestation over what we take that experience to mean.

Social constructionists and pragmatists hold that it is impossible to take the position of objective observer and that those who claim to do so are simply ignoring the impact of their own participation or lack of it.

We have to recognise that the approach we adopt is the product of who we are and how we think. This, in turn, is the distillation of our personal histories of relating to other people over many years in the particular communities we have lived and do live in which also have histories.

We can never claim to stand outside our own experience, outside the web of relationships that we are a part of, and take the role of objective observer. Instead, we have to take the role of inquiring participant (Reason, 1988). Furthermore, reflexivity is not simply an individual activity dependent on that individual person’s history alone. This is because we are always members of a community that has a history and traditions of thought. Reflexivity, therefore, involves being aware of the impact on how one thinks of both one’s personal history and the histor ons of thought of one’s community. It is for this reason that Chapters 3 and 12 (of Stacey and Mowles’ book) give brief accounts of the central traditions in Western thought.

Just how human beings know anything, and whether the individual or the group is primary, are hotly contested issues with no clear truth

The last post was about texts I would recommend for those

  • baffled by Economics

  • who appreciate, however, that illiteracy about economic and financial matters in unacceptable

  • who are prepared to invest some time in understanding the subject’s strengths AND weaknesses

I’ve been heartened by the growth of a more pluralist approach to the discipline in the new millennium – books such as

Economic Literacy – basic economics with an attitude Fred Weaver (2nd ed 2007)

Rethinking Economics – and intro to pluralist economics ed L Fischer et al (2018)

Applied Economics – thinking beyond stage one Thomas Sewell (2019)

Economy Studies – a guide to rethinking economics eduation de Mujnck and Tielemann (2021)

A more traditional approach

Ten principles of Economics Gregor Mankiw 5th ed a multi-millionnaire from his sale of the textbook; and an adviser to Republican Presidents.

Sunday, August 6, 2023

Popularising Economics

Economics is known as "the dismal science" – but is most decidedly NOT a science! It has indeed become the new religionworshipped by policy-makers throughout the world. I've learned to distrust the breed – but they have such a grip on our minds that the only way to counter their evil influence is by penetrating their myths viz by reading up on the nonsense most of them perpetrate.

So I've prepared two lists – the first, some good introductions to the subject. And the second some well-written and more polemical critiques of the discipline

Good Introductory Texts

- Almost Everyone’s Guide to Economics; JK Galbraith and N Salinger (1978) quite inspiring from one of the world's best writers and economists quizzed by a young French woman. I discovered it recently thanks to a great biography of the man by Stephen Dunn.

- Short Circuit – strengthening local economies in an unstable world” - Ronald Douthwaite (1996). Very practical – but also inspirational….almost 30 years on, it hasn’t really been bettered. Full text available at the link

- Debunking Economics – the naked emperor dethroned; Steve Keen (2001 and 2011) Written before the crash. it might be called the first alternative textbook (except it’s much greater fun to read!). Can be read in full.

- Economics for Everyone – a short guide to the economics of capitalism”; Jim Stanford (2006) is a very user-friendly book and has an excellent “further reading” list which was probably the best there was at that time….Once upon a time it was freely available on the internet but now I can find only excerpts…..

- The Economics Book – big ideas simply explained ed Kishtany, Meadway et al 2012 Superbly presented chronogically, with short chapters on every imaginable topic

Economics – the user’s guide Ha-Joon Chang 2014 probably my favourite - not least because it understands our repugnance about the subject and offers a way of reading the book Also because it accepts that it is not a science; recognises that there are various (very different) perspectives on the subject; and explains each.  

- Credo – economic beliefs in a world of crisis; Brian Davey (2015) An alternative approach to economics which situates it in its cultural and historical context. It may be long (at 500 pages) but is definitely worth persevering with.…

- Economics for the Common Good; Jean Tirole (2017) A Nobel-prizewinner offers a highly readable text – written in short chunks

- Economics in two lessons; John Quiggin (2019) Quiggin is an Australian economist which means a non-nonsense approach


Less introductory – more polemical
For the Common Good; Herman Daly and John Cobb (1989). The book which inspired a different approach to economics – written by a theologian (Cobb) and Herman Daley who for 6 years was the principal economist of the World Bank. But, by virtue of being a train blazer, not the easiest of reads

- Zombie Economics - how dead ideas still walk among us; by John Quiggin (2010) is a great read – with a self-explanatory title. He is an Australian author currently completing a book called Economics in Two Lessons

- 23 Things they didn’t tell you about capitalism; Ha Joon-Chang (2010) superbly-written demolition job on the myths perpetrated on us by economists

- The Economics of Enough; Diane Coyle (2011)

- Austerity – the history of a dangerous ides; Mark Blyth (2013) written by a political scientist/political economist, it shows how old theories still affect the contemporary world profoundly

- Economics of the 1% - how mainstream economics serves the rich, obscures reality and distorts policy; John F Weeks (2014) More of a critique but a text which is a must-read. One of the best introductions to the subject - which can't be faulted for being over-diplomatic!

- Vampire Capitalism – fractured societies and alternative futures; Paul Kennedy (2017) Hardly an introductory text and more of a sociological treatment which earns high points by stating in the very first sentence that it has “stood on the shoulders of so many giants that he is dizzy” and then proves the point by having an extensive bibliography with lots of hyperlinks…

- Doughnut economics – 7 ways to think like a 21st century economist; Kate Raworth (2017). This Oxford economist has made quite an impact with this book

- Good Economics for Hard Times Banerjee and Duflo (2019) common sense from a Nobel-prize winning couple

- What's Wrong with economics – a primer for the perplexed; Robert Skidelsky (2020) Skidelsky is the biographer of Keynes and as much an historian as economist. This is less an introductory text and more a polemic


Friday, June 23, 2023

The Fundamental Flaw in the Economists’ view of the world

I once called myself an economist – it was something graduates of 1960’s British Universities did then. It was sufficiently unusual to be worn as a mark of distinction. However I can remember only the following lessons from my four years engrossed in economics books -

- the strictness of the various preconditions which governed the idea of (perfect) competition – making it a highly improbable occurrence;

- the questionable nature of the of notion of “profit-maximisation”;

- the belief (thanks to the writings of James Burnham and Tony Crosland) that management (not ownership) was the all- important factor

- trust (thanks to Keynes whose work was dinned into me) in the ability of government to deal with such things as “exuberant expectations”

- the realization (through the report of the 1959 Radcliffe Commission) that cash was but a small part of money supply. Financial economics was in its infancy then and debt - household and country – had not become the problem it now is.

By the mid 1970s I had seen the error of my ways and moved, somewhat unsuccesfully, into the field of “political science” (the penis envy of real science was already evident). By the 1980s we had all fallen - hook, line and sinker - for the new economic religionWhen I first came to Romania in the early 90s, I was amazed at the number of “economists” I came across – for them it meant no more than an “accountant”!

This blog has been very critical of the economic profession – only economists like Steve Keen, Mark Blyth, Yanis Varoufakis and Dani Rodrik have managed to escape its ire, although it has recognised the stirrings in the new millenium of remorse for its erstwhile arrogance. What most economists have a temperamental disinclination to discuss is...POWER – which even this little overview ignores. 

This fantastic article offers a very useful discussion of the sort of criticism economics has received in the past decade or so - setting it against some alternative models.

A couple of economists have just come out into the open about the subject - Power and Progress – our struggle over technology and prosperityby Daren Acemoglu and Simon Johnson comes in at a whopping 550 pages. Acemoglu is a developmental economist from Turkey who has published, with political scientist James Robinson, “Why Nations Fail” (570 pp 2012) and “The Narrow Corridor – states, societies and the state of liberty” (800pp 2019)

I mention the number of pages simply because I have an ongoing campaign against long-winded authors and have appealed to publishers and writers alike to exercise more discipline before they inflict yet another title on the poor reader. The reviews are interesting although I think Acemoglu would have been better advised to continue his partnership with a political scientist. I think I will wait for a graphic version.

Reviews and interviews

Wednesday, February 1, 2023

Bad Economics and journalistic responsibility

Bad Economics and journalistic accountability

Journalism is such an important bridge between experts, governments and citizens that it used to be called “the Fourth Estate” in recognition of its quasi-constitutional significance. The conduct of democracy required citizens to feel confident that what they read in newspapers had some resemblance to “the facts” – but postmodernity has eaten away at such faith. And more and more of us accept that journalism has become part of what Guy Debord called a gigantic industry of “spectacle

But where does that leave accountability – and ethical responsibility?

I can hear my readers laugh at such naivety

But it is a serious question which I’ve tried to deal with in previous posts listed here

The question arose again this past week in the UK – with the publication of a report on how the BBC has dealt with economics issues in the past few decades. The BBC’s news summary of the report is here. And the full report, which was written by Michael Blastland and Sir Andrew Dilnot, is here. The Guardian eventually had an economist make a typical comment which failed to offer any solutions to the issue of journalistic economic ignorance which had been exposed

So let me repair this deficiency on the part of journalism and offer my list of books which could help the citizen and general reader understand the basics of economics.

And, as a bonus, a master class in how television interviewing should be done

Best written books about Economics for the general reader (chronological order)

Title, author and date

Comment

Almost Everyone’s Guide to Economics;JK Galbraith and N Salinger (1978)

One of the world’s best non-fiction writers and economists is quizzed by a Frenchwoman. Superb

Short Circuit – strengthening local economies in an unstable world” - Ronald Douthwaite (1996)

Very practical insight into local economic development by an Irishman – but also inspirational….24 years on, it hasn’t really been bettered.

Debunking Economics – the naked emperor dethroned; Steve Keen (2001 and 2011)

Written before the crash, it might be called the first alternative textbook (except it’s much greater fun to read!). By an Australian

Economics for Everyone – a short guide to the economics of capitalism”; Jim Stanford (2008)

 a very user-friendly book commissioned by Canadian trade unions with excellent graphics and “further reading” list ….for full version see table 2 …..

Zombie Economics - how dead ideas still walk among us; by John Quiggin (2010)

is a great read – with a self-explanatory title. He is also an Australian

23 Things they didn’t tell you about capitalism; Ha Joon-Chang (2010)

superbly-written demolition job on the myths perpetrated on us by economists. By a Cambridge economist educated in South Korea

The Delusions of Economics - the Misguided Certainties of a Hazardous Science; Gilbert Rist (2010)

Be Warned – this is not a guide but rather a short critique which ridicules economics. More for light relief!

"The End of Progress - how modern economics has failed us"; Graham Maxton (2011)

a highly readable book by an ex-Director-General of the Club of Rome

Austerity – the history of a dangerous ides; Mark Blyth (2013)


written by a Scottish political scientist/political economist (now working at Brown Uni in US) , it shows how old theories still affect the contemporary world profoundly

Economics of the 1% - how mainstream economics serves the rich, obscures reality and distorts policy; John F Weeks (2014)

One of the best introductions to the subject - which can't be faulted for being over-diplomatic! 

By a US economist who worked in London from the 2000s

Credo – economic beliefs in a world of crisis; Brian Davey (2015)


An alternative approach to economics which situates it in its cultural and historical context. It may be long (at 500 pages) but is definitely worth persevering with....

Economics Rules – the rights and wrongs of the dismal science; Dani Rodrik (2016)

Rodrik is from Turkey and is one of the few economists prepared to challenge the mainstream. This is a balanced rather than critical analysis

The Econocracy – the perils of leaving economics to the experts; Earle, Moran and Ward-Perkins (2017)


This is a highly readable little book from those who took part in the protests about the irrelevance of economic teaching and set out the deficiencies they experienced. This is one of the few which is not freely downloadable

Vampire Capitalism – fractured societies and alternative futures; Paul Kennedy (2017)

A sociologist’s treatment which earns high points by stating in the very first sentence that it has “stood on the shoulders of so many giants that he is dizzy” and then proves the point by having an extensive bibliography with lots of hyperlinks…

Doughnut ;economics – 7 ways to think like a 21st century economist Kate Raworth (2017). google excerpts only

This Oxford economist’s book is advertised as a new perspective on the subject.

These last four are not fully downloadable

Economics for the common good; Jean Tirole (2017) A French Nobel-prize winning economist

A useful review here

Economics in Two Lessons; John Quiggin (2019)

Quiggin wrote this book on his website, seeking feedback as he went

What’s wrong with economics – a primer for the perplexed; Robert Skidelsky (2020)

Skidelsky is a stylish writer – historian and biographer of Keynes – I’ve long admired. I’ve not had a chance to read the book yet – although Diana Coyle’s not impressed


Thursday, September 3, 2020

The most readable Guidebooks to Economics

I have, I readily admit, a certain fixation about the style of social science booksparticularly economic ones. I have at least 5 reasons for deep concern –
- the lack of taste shown by publishers - who insist on imposing narrow and badly-written texts on us
- the way continuing academic compartmentalisation into tinier and tinier sub-fields makes it more and more difficult for those who work across disciplinary fields to get a serious hearing
- the obfuscating nature of the prose - which results as they disappear up one another’s arses;
- the dominance and unjustifiable arrogance of the economists; and
- the managerialist grab of the past few decades

I try, occasionally, to explore why specialists write such inferior books compared to those who have resisted groupthink and who approach an issue more creatively…..from a multidisciplinary point of view. I find myself using the metaphor of a bridge, border or network.
But perhaps “outsider” is a better term since it better conveys the sense of not belonging to the group – of being on the periphery…..Indeed the word “periphery” also gives a useful sense of the importance of messages and pressures from diverse sources in helping avoid the dreaded disease of “groupthink”…  “Think “peripheral vision” and “tunnel vision”, focus – which is why my blog currently bears the title it does….

Like the good social scientist I am, I already have a hypothesis – namely that the feeling of being an outsider is a catalyst to identify and challenge “groupthink” and that writing is an effective way of exploring the multiple perspectives which subsequently open up…..
Clearly one can be a great writer without being (or feeling) an outsider - although I suspect that people who lack empathy won’t be great writers. But the weak point in my argument is the connection between creativity and writing. There’s no obvious reason why those with creative insights should be able to express them clearly in writing,,,,……Or is there?    

But I have probably been insufficiently sensitive to the system in which social scientists are trapped…
Academics are now under pressure to publish - with their Departments rewarded financially for those who have high ratings from what’s called “peer-reviews”. Those who accept the “conventional wisdom” in their fields and write in jargon will generally score well in these ratings.
But go off piste and/or write in plain language the (wo)man in the street can understand and you’re in trouble.
One of the concluding chapters of The Econocracy – the perils of leaving economics to the experts by Earle, Moran and Ward-Perkins (2017) explains this very well. And argues, correctly in my view, that the way we allow economists to continue to bamboozle us into believing that the subject is a difficult one is nothing short of criminal!

It was early 2018 when I did the first list for my readers of clearly-written explanatory economics books which I could recommend….   So it’s about time it was updated
All the books until the list reaches 2017 are downloadable in full 

Table 1; Best written books about Economics for the general reader (chronological order)

Title, author and date

Comment

Almost Everyone’s Guide to Economics; JK Galbraith and N Salinger (1978)

One of the world’s best non-fiction writers and economists is quizzed by a Frenchwoman. Superb

Short Circuit – strengthening local economies in an unstable world” - Ronald Douthwaite (1996)

Very practical insight into local economic development by an Irishman – but also inspirational….24 years on, it hasn’t really been bettered.

Debunking Economics – the naked emperor dethroned; Steve Keen (2001 and 2011)

Written before the crash, it might be called the first alternative textbook (except it’s much greater fun to read!). By an Australian

Economics for Everyone  – a short guide to the economics of capitalism”; Jim Stanford (2008)

 a very user-friendly book commissioned by Canadian trade unions with excellent graphics and “further reading” list ….for full version see table 2 …..

Zombie Economics - how dead ideas still walk among us; by John Quiggin (2010)

is a great read – with a self-explanatory title. He is also an Australian

23 Things they didn’t tell you about capitalism; Ha Joon-Chang (2010)

superbly-written demolition job on the myths perpetrated on us by economists. By a Cambridge economist educated in South Korea

"The End of Progress - how modern economics has failed us"; Graham Maxton (2011)

a highly readable book by an ex-Director-General of the Club of Rome

Austerity – the history of a dangerous ides; Mark Blyth (2013)

written by a Scottish political scientist/political economist (now working at Brown Uni in US) , it shows how old theories still affect the contemporary world profoundly  

Economics of the 1% - how mainstream economics serves the rich, obscures reality and distorts policy; John F Weeks (2014

One of the best introductions to the subject - which can't be faulted for being over-diplomatic! 

By a US economist who worked in London from the 2000s

Credo – economic beliefs in a world of crisis; Brian Davey (2015)

An alternative approach to economics which situates it in its cultural and historical context. It may be long (at 500 pages) but is definitely worth persevering with....

Economics Rules – the rights and wrongs of the dismal science; Dani Rodrik (2016)

Rodrik is from Turkey and is one of the few economists prepared to challenge the mainstream. This is a balanced rather than critical analysis

The Econocracy – the perils of leaving economics to the experts; Earle, Moran and Ward-Perkins (2017)

This is a highly readable little book from those who took part in the protests about the irrelevance of economic teaching and set out the deficiencies they experienced. This is one of the few which is not freely downloadable

Vampire Capitalism – fractured societies and alternative futures; Paul Kennedy (2017)

A sociologist’s treatment which earns high points by stating in the very first sentence that it has “stood on the shoulders of so many giants that he is dizzy” and then proves the point by having an extensive bibliography with lots of hyperlinks…

Doughnut economics – 7 ways to think like a 21st century economist; Kate Raworth (2017).

This Oxford economist’s book is advertised as a new perspective on the subject. One of the few not downloadable

Economics for the common good; Jean Tirole (2017) A French Nobel-prize winning economist

useful review here

Economics in Two Lessons; John Quiggin (2019)

Google excerpts only

Quiggin wrote this book on his website, seeking feedback as he went . You may therefore be able to see a fair amount of the content here

“What’s wrong with economics – a primer for the perplexed”; Robert Skidelsky (2020)

Skidelsky is a stylish writer – historian and biographer of Keynes – I’ve long admired. I’ve not had a chance to read the book yet – although Diana Coyle’s not impressed



Further reading
429,500 academics are employed in British universities
What are Universities for? Useful briefing paper from 2008