road to serfdom

144 results back to index


pages: 494 words: 132,975

Keynes Hayek: The Clash That Defined Modern Economics by Nicholas Wapshott

"Robert Solow", airport security, banking crisis, Bretton Woods, British Empire, business cycle, collective bargaining, complexity theory, creative destruction, cuban missile crisis, Francis Fukuyama: the end of history, full employment, Gordon Gekko, greed is good, Gunnar Myrdal, if you build it, they will come, Isaac Newton, Joseph Schumpeter, Kickstarter, liquidationism / Banker’s doctrine / the Treasury view, means of production, Mont Pelerin Society, mortgage debt, New Journalism, Northern Rock, Paul Samuelson, Philip Mirowski, price mechanism, pushing on a string, road to serfdom, Robert Bork, Ronald Reagan, Simon Kuznets, The Chicago School, The Great Moderation, The Wealth of Nations by Adam Smith, Thomas Malthus, trickle-down economics, War on Poverty, Yom Kippur War

., p. 58. 35 Hayek quoted Keynes, “The Economics of War in Germany,” Economic Journal, vol. 25, September 1915, p. 450, referring to the “nightmare” of reading a German author advocating the continuation of the military ethos in peacetime industrial life. Collected Works, vol. 2: Road to Serfdom, p. 195, footnote. 36 F. A. Hayek, Preface to the original edition of The Road to Serfdom, in Collected Works, vol. 2: Road to Serfdom, p. 37. 37 Collected Works, vol. 2: Road to Serfdom, pp. 148–149. 38 Ibid. 39 Ibid., p. 214. 40 Hayek, Preface to the 1976 edition of The Road to Serfdom, in Collected Works, vol. 2: Road to Serfdom, p. 55. 41 Collected Works, vol. 2: Road to Serfdom, pp. 58–59. 42 Ibid., p. 105. 43 Hayek, Preface to the 1956 American edition of The Road to Serfdom, in Collected Works, vol. 2: Road to Serfdom, p. 37. 44 Letter from Keynes to Hayek, April 4, 1944, LSE Archives, London. 45 Collected Writings, vol. 17: Activities 1920–2: Treaty Revision and Reconstruction (Macmillan for the Royal Economic Society, London, 1977), pp. 385–387. 46 Chicago Round Table, quoted in Ebenstein, Friedrich Hayek, p. 126. 47 Collected Works, vol. 2: Road to Serfdom, p. 148. 48 Collected Writings, vol. 17: Activities 1920–2, pp. 385–387. 49 Interview of Hayek by Thomas W.

“At that very moment Keynes became the great figure and I was gradually forgotten as an economist.”86 As he put it some forty years later, “In the middle 1940s—I suppose I sound very conceited—I think I was known as one of the two main disputing economists: there was Keynes and there was I. Now, Keynes died and became a saint; and I discredited myself by publishing ‘The Road to Serfdom,’ which completely changed the situation.”87 FOURTEEN The Wilderness Years Mont-Pèlerin and Hayek’s Move to Chicago, 1944–69 Hayek did little to build on the popular success of The Road to Serfdom in America. He was a reluctant public figure and found that the acclamation he received on his book tour disturbed his decorum. “I was asked to come over to give five series of lectures at five universities,” he recalled. “I imagined very sedate academic lectures, which I had written out very carefully. . . . While I was on the high seas, the condensation of The Road to Serfdom in the Reader’s Digest appeared. So when I arrived I was told . . . I was to go on a public lecture tour around the country.

Hayek’s venture into doomsday prognostication in The Road to Serfdom was also cited as evidence that he lacked the intellectual rigor expected at the Chicago School. According to John Nef, chairman of Chicago’s Committee on Social Thought, some Chicago economists believed The Road to Serfdom “too popular a work for a respectable scholar to perpetrate. It was all right to have him at Chicago so long as he was not associated with the economists.”42 In the fall of 1950, at the suggestion of Nef, Hayek became professor of social and moral science in the Committee on Social Thought, a chair funded in part by the Volcker fund. Despite the rebuff, Hayek accepted the post. Hayek wanted to kick-start his counterrevolution by writing a work that would be as popularly received as The Road to Serfdom. As his biographer Alan Ebenstein explained, “He hoped The Constitution of Liberty would be [Adam Smith’s] The Wealth of Nations of the twentieth century.”43 Over the next nine years he worked on and off on a work that would explain why the rule of law is the best way to safeguard individual liberties from governments.


pages: 483 words: 134,377

The Tyranny of Experts: Economists, Dictators, and the Forgotten Rights of the Poor by William Easterly

"Robert Solow", air freight, Andrei Shleifer, battle of ideas, Bretton Woods, British Empire, business process, business process outsourcing, Carmen Reinhart, clean water, colonial rule, correlation does not imply causation, creative destruction, Daniel Kahneman / Amos Tversky, Deng Xiaoping, desegregation, discovery of the americas, Edward Glaeser, en.wikipedia.org, European colonialism, Francisco Pizarro, fundamental attribution error, germ theory of disease, greed is good, Gunnar Myrdal, income per capita, invisible hand, James Watt: steam engine, Jane Jacobs, John Snow's cholera map, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, M-Pesa, microcredit, Monroe Doctrine, oil shock, place-making, Ponzi scheme, risk/return, road to serfdom, Silicon Valley, Steve Jobs, The Death and Life of Great American Cities, The Wealth of Nations by Adam Smith, Thomas L Friedman, urban planning, urban renewal, Washington Consensus, WikiLeaks, World Values Survey, young professional

Quoted in Daniel Yergin and Joseph Stanislaw, The Commanding Heights: The Battle Between Government and the Marketplace That Is Remaking the Modern World (New York: Simon and Schuster, 1998), 150–51. 48. Hayek, Road to Serfdom, 1750. 49. Ibid., 1202. 50. Ibid., 1829. 51. F. A. Hayek, ed., Collectivist Economic Planning: Critical Studies on the Possibilities of Socialism by N.G. Pierson, Ludwig von Mises, Georg Halm, and Enrico Barone (London: Routledge and Kegan Paul, 2011), Kindle edition, locations 152–57. 52. Hayek, Constitution of Liberty, 1980. 53. Hayek, Road to Serfdom, 180. 54. Gunnar Myrdal, Development and Under-Development: A Note on the Mechanism of National and International Inequality (Cairo: National Bank of Egypt, 1956), 63 and 65. 55. Quoted in Bauer, Dissent on Development, 187. 56. Ibid., 206. 57. Ibid., 207. 58. Ibid., 189. 59. Hayek, Road to Serfdom, 2216. 60. Hayek, Constitution of Liberty, 13831. 61. Hayek, Road to Serfdom, Kindle location 4350. 62.

In truth, as we have already seen above, there is ample evidence that Hayek was not the conservative ideologue his critics claimed. The Road to Serfdom advocated such nonconservative ideas as a minimum income guaranteed by the state: “there can be no doubt that some minimum of food, shelter, and clothing, sufficient to preserve health and the capacity to work, can be assured to everybody.”22 In fact, Hayek condemned some of the very people he was identified with by his critics. In the pages of the 1956 version of The Road to Serfdom, he said British Conservatives were “paternalistic, nationalistic, and power-adoring . . . traditionalistic, anti-intellectual, and often mystical.”23 Hayek himself acknowledged after the fact that he had attracted some followers with whom he did not agree, at some cost to himself: “the manner in which [The Road to Serfdom] was used [in the United States] vividly brought home to me the truth of Lord Acton’s observation that ‘at all times sincere friends of freedom have been rare, and its triumphs have been due to minorities, that have prevailed by associating themselves with auxiliaries whose objects often differed from their own; and this association, which is always dangerous, has sometimes been disastrous.’”24 My argument here is not meant to address any debate on right versus left in US domestic policy.

German History in Documents and Images, Volume 7, Nazi Germany, 1933–1945, Decree of the Reich President for the Protection of the People and State (“Reichstag Fire Decree”), February 28, 1933, http://germanhistorydocs.ghi-dc.org/pdf/eng/English%203_5.pdf, accessed September 4, 2013. 19. Hayek, Road to Serfdom, 5974, 5991. 20. Wenar, Hayek on Hayek, 1011–14. 21. F. A. Hayek, Studies on the Abuse and Decline of Reason, ed. Bruce Caldwell, Volume 13, The Collected Works of F. A. Hayek (Chicago: University of Chicago Press, 2010), Kindle edition, locations 8903–8908. 22. Hayek, Road to Serfdom, 3601. 23. Ibid. 1225. 24. Ibid. 1140. 25. Clifford Geertz, “Myrdal’s Mythology,” Encounter 33, Number 1 (July 1969): 29–33; quote is from page 31. 26. Myrdal, International Economy, 201. 27. Hayek, Road to Serfdom, 1814. 28. Ibid. 1753. 29. Ibid. 1814. 30. Allan Carlson, The Swedish Experiment in Family Politics: The Myrdals and the Interwar Population Crisis (New Brunswick, NJ: Transaction Publishers, 1990), 94, 95, 90. 31.


pages: 470 words: 130,269

The Marginal Revolutionaries: How Austrian Economists Fought the War of Ideas by Janek Wasserman

Albert Einstein, American Legislative Exchange Council, anti-communist, battle of ideas, Berlin Wall, Bretton Woods, business cycle, collective bargaining, Corn Laws, correlation does not imply causation, creative destruction, David Ricardo: comparative advantage, different worldview, Donald Trump, experimental economics, Fall of the Berlin Wall, floating exchange rates, Fractional reserve banking, Francis Fukuyama: the end of history, full employment, Gunnar Myrdal, housing crisis, Internet Archive, invisible hand, John von Neumann, Joseph Schumpeter, laissez-faire capitalism, liberal capitalism, market fundamentalism, mass immigration, means of production, Menlo Park, Mont Pelerin Society, New Journalism, New Urbanism, old-boy network, Paul Samuelson, Philip Mirowski, price mechanism, price stability, RAND corporation, random walk, rent control, road to serfdom, Robert Bork, rolodex, Ronald Coase, Ronald Reagan, Silicon Valley, Simon Kuznets, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, trade liberalization, union organizing, urban planning, Vilfredo Pareto, Washington Consensus, zero-sum game, éminence grise

Nevertheless, Bush took the ceremony as an opportunity to present the popular understanding of Hayek—and that of the Austrian School—which remains largely intact today. He lauded the prescience of Road to Serfdom and Hayek’s commitment to “freedom’s triumph.” Bush declared that “Hayek is revered by the free people of Central and Eastern Europe as a true visionary, and recognized worldwide as a revolutionary in intellectual and political thought. How magnificent it must be for him to witness his ideas validated before the eyes of the world.” The economics writer Sylvia Nasar, covering the event, likewise enthused that “Mr. von Hayek’s views on the economic inadequacies and political ills of central planning are now those of the mainstream.” In the popular imagination, the idea of the Austrian School was reduced to a simplified “road to serfdom” argument, hazy pronouncements about freedom, and prophetic defenses of liberty and unfettered capitalism.5 In this concluding chapter, we explore these two distinct developments in the quarter century since the last Viennese representatives passed away: the evolution of Austrian School ideas and the appropriation of the idea of the Austrian School for ideological and political purposes.

When it has reached the public’s attention, it is in attenuated form: as the champions of liberty and opposers of the “road to serfdom” (as George H. W. Bush suggested) or as radical free marketeers and libertarians. In the latter case, the return of Austrianism occurs when the debates within the marginal libertarian community surface in mainstream political discourse. No one has produced more notoriety for Austrianism than Ron Paul. The Ron Paul political campaigns in 1996 and 2008 shone light on the larger Austrian School, drawing the tradition out of the shadows. After the early 1990s heyday in the shadow of Communism’s collapse, the Austrian School largely receded from view until 2008. Hayek’s and Haberler’s deaths received mentions in 1992 and 1995, respectively, but few journalists actively cited the school or its ideas in their columns. The fiftieth anniversary of Road to Serfdom in 1994 precipitated a handful of popular appreciations, as did reviews of a few Hayek biographies, but most commentary appeared in conservative journals.

Megan, my partner, deserves the greatest credit of all. This project would have been impossible without her patience and magnanimity. Thank you for everything—this book is for you. INTRODUCTION Americans searching Amazon’s best-seller list in June 2010 would have encountered a surprising title at the top, above the likes of books by Stieg Larsson, George W. Bush, Malcolm Gladwell, and Michael Lewis: Friedrich Hayek’s Road to Serfdom. The “Definitive Edition” had appeared in 2007, yet it sold only six hundred copies a month for a year and a half. Then the combined effects of the Great Recession and the election of Barack Obama quadrupled its sales. The book sold seven thousand copies in 2008, twenty-seven thousand in 2009. Talk of stimulus packages and “socialized medicine” and the rise of the Tea Party movement spurred further sales.


pages: 453 words: 117,893

What Would the Great Economists Do?: How Twelve Brilliant Minds Would Solve Today's Biggest Problems by Linda Yueh

"Robert Solow", 3D printing, additive manufacturing, Asian financial crisis, augmented reality, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, bitcoin, Branko Milanovic, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, computer age, Corn Laws, creative destruction, credit crunch, Credit Default Swap, cryptocurrency, currency peg, dark matter, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, endogenous growth, everywhere but in the productivity statistics, Fall of the Berlin Wall, fear of failure, financial deregulation, financial innovation, Financial Instability Hypothesis, fixed income, forward guidance, full employment, Gini coefficient, global supply chain, Gunnar Myrdal, Hyman Minsky, income inequality, index card, indoor plumbing, industrial robot, information asymmetry, intangible asset, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, laissez-faire capitalism, land reform, lateral thinking, life extension, low-wage service sector, manufacturing employment, market bubble, means of production, mittelstand, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, Nelson Mandela, non-tariff barriers, Northern Rock, Occupy movement, oil shale / tar sands, open economy, paradox of thrift, Paul Samuelson, price mechanism, price stability, Productivity paradox, purchasing power parity, quantitative easing, RAND corporation, rent control, rent-seeking, reserve currency, reshoring, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Simon Kuznets, special economic zone, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, total factor productivity, trade liberalization, universal basic income, unorthodox policies, Washington Consensus, We are the 99%, women in the workforce, working-age population

The book was published in February 1960 and intended for a general readership. Hayek considered it his best work, his magnum opus, and had suitably high expectations. The Road to Serfdom he described as a semi-popular book, but The Constitution of Liberty was, he hoped, to be The Wealth of Nations for the twentieth century.17 Unfortunately for Hayek, it would not come close to reaching the popularity of The Road to Serfdom. This time the book was not reviewed in Time or Life, and the Reader’s Digest did not consider it suitable for a condensed version. Perhaps The Constitution of Liberty just did not capture the mood of the time in the way that The Road to Serfdom had as people looked beyond the Second World War. In 1962 Milton Friedman published Capitalism and Freedom, which he also felt was underappreciated. * * * Friedrich Hayek left Chicago and America in 1962, citing financial reasons.

He wrote: there can be no doubt that some minimum of food, shelter, and clothing, sufficient to preserve health and the capacity to work, can be assured to everybody … Where, as in the case of sickness and accident, neither the desire to avoid such calamities nor the efforts to overcome their consequences are as a rule weakened by the provision of assistance, where, in short, we deal with genuinely insurable risks, the case for the state’s helping to organize a comprehensive system of social insurance is very strong.14 * * * In many ways Friedrich Hayek was at his peak in terms of celebrity and reputation after the publication of The Road to Serfdom. He had conceived the idea of setting up a society to bring German scholars back into mainstream classical thought after the Second World War, and a couple of years later, between 1 and 10 April 1947, the first Mont Pelerin Society conference took place in Switzerland. Hayek invited intellectuals who supported classical liberalism – in all, thirty-nine individuals from ten countries. Hayek was the first president and stayed in post until 1961. It continues today in the same liberal tradition, and eight Nobel Prize winners have been members. Hayek had always been interested in psychology and after the success of The Road to Serfdom he indulged himself working on his next project, The Sensory Order. Published in 1952, the book set out a division of knowledge within societies where each person’s share of knowledge was infinitesimally minuscule, which limited the knowledge attainable for any individual.

In the 1940s he disavowed the Keynesian revolution that was sweeping through the economics establishment. He attacked socialism when the welfare state was being formed in most major economies. In Hayek’s view, socialism would invariably lead to central planning. When it comes to technological development, no progress can be made unless people are allowed to move into unexpected areas and learn from their mistakes. In The Road to Serfdom, Hayek describes how totalitarian regimes are not just unproductive but also suppress these freedoms. (The title of his best-known book comes from a phrase used by the French writer Alexis de Tocqueville, ‘the road to servitude’.2) Instead, markets create the price signals and incentives to orientate the economy most efficiently. To the wrath of the Occupy protesters, he would also have been less concerned about inequality, as he strongly believed societal progress was driven by the ideas of a few.


pages: 374 words: 113,126

The Great Economists: How Their Ideas Can Help Us Today by Linda Yueh

"Robert Solow", 3D printing, additive manufacturing, Asian financial crisis, augmented reality, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, bitcoin, Branko Milanovic, Bretton Woods, BRICs, business cycle, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, computer age, Corn Laws, creative destruction, credit crunch, Credit Default Swap, cryptocurrency, currency peg, dark matter, David Ricardo: comparative advantage, debt deflation, declining real wages, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, endogenous growth, everywhere but in the productivity statistics, Fall of the Berlin Wall, fear of failure, financial deregulation, financial innovation, Financial Instability Hypothesis, fixed income, forward guidance, full employment, Gini coefficient, global supply chain, Gunnar Myrdal, Hyman Minsky, income inequality, index card, indoor plumbing, industrial robot, information asymmetry, intangible asset, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, joint-stock company, Joseph Schumpeter, laissez-faire capitalism, land reform, lateral thinking, life extension, manufacturing employment, market bubble, means of production, mittelstand, Mont Pelerin Society, moral hazard, mortgage debt, negative equity, Nelson Mandela, non-tariff barriers, Northern Rock, Occupy movement, oil shale / tar sands, open economy, paradox of thrift, Paul Samuelson, price mechanism, price stability, Productivity paradox, purchasing power parity, quantitative easing, RAND corporation, rent control, rent-seeking, reserve currency, reshoring, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, school vouchers, secular stagnation, Shenzhen was a fishing village, Silicon Valley, Simon Kuznets, special economic zone, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, total factor productivity, trade liberalization, universal basic income, unorthodox policies, Washington Consensus, We are the 99%, women in the workforce, working-age population

The book was published in February 1960 and intended for a general readership. Hayek considered it his best work, his magnum opus, and had suitably high expectations. The Road to Serfdom he described as a semi-popular book, but The Constitution of Liberty was, he hoped, to be The Wealth of Nations for the twentieth century.17 Unfortunately for Hayek, it would not come close to reaching the popularity of The Road to Serfdom. This time the book was not reviewed in Time or Life, and the Reader’s Digest did not consider it suitable for a condensed version. Perhaps The Constitution of Liberty just did not capture the mood of the time in the way that The Road to Serfdom had as people looked beyond the Second World War. In 1962 Milton Friedman published Capitalism and Freedom, which he also felt was underappreciated. Friedrich Hayek left Chicago and America in 1962, citing financial reasons.

He wrote: there can be no doubt that some minimum of food, shelter, and clothing, sufficient to preserve health and the capacity to work, can be assured to everybody … Where, as in the case of sickness and accident, neither the desire to avoid such calamities nor the efforts to overcome their consequences are as a rule weakened by the provision of assistance, where, in short, we deal with genuinely insurable risks, the case for the state’s helping to organize a comprehensive system of social insurance is very strong.14 In many ways Friedrich Hayek was at his peak in terms of celebrity and reputation after the publication of The Road to Serfdom. He had conceived the idea of setting up a society to bring German scholars back into mainstream classical thought after the Second World War, and a couple of years later, between 1 and 10 April 1947, the first Mont Pelerin Society conference took place in Switzerland. Hayek invited intellectuals who supported classical liberalism – in all, thirty-nine individuals from ten countries. Hayek was the first president and stayed in post until 1961. It continues today in the same liberal tradition, and eight Nobel Prize winners have been members. Hayek had always been interested in psychology and after the success of The Road to Serfdom he indulged himself working on his next project, The Sensory Order. Published in 1952, the book set out a division of knowledge within societies where each person’s share of knowledge was infinitesimally minuscule, which limited the knowledge attainable for any individual.

In the 1940s he disavowed the Keynesian revolution that was sweeping through the economics establishment. He attacked socialism when the welfare state was being formed in most major economies. In Hayek’s view, socialism would invariably lead to central planning. When it comes to technological development, no progress can be made unless people are allowed to move into unexpected areas and learn from their mistakes. In The Road to Serfdom, Hayek describes how totalitarian regimes are not just unproductive but also suppress these freedoms. (The title of his best-known book comes from a phrase used by the French writer Alexis de Tocqueville, ‘the road to servitude’.2) Instead, markets create the price signals and incentives to orientate the economy most efficiently. To the wrath of the Occupy protesters, he would also have been less concerned about inequality, as he strongly believed societal progress was driven by the ideas of a few.


Globalists: The End of Empire and the Birth of Neoliberalism by Quinn Slobodian

Asian financial crisis, Berlin Wall, bilateral investment treaty, borderless world, Bretton Woods, British Empire, business cycle, capital controls, central bank independence, collective bargaining, David Ricardo: comparative advantage, Deng Xiaoping, desegregation, Dissolution of the Soviet Union, Doha Development Round, eurozone crisis, Fall of the Berlin Wall, floating exchange rates, full employment, Gunnar Myrdal, Hernando de Soto, invisible hand, liberal capitalism, liberal world order, market fundamentalism, Martin Wolf, Mercator projection, Mont Pelerin Society, Norbert Wiener, offshore financial centre, oil shock, open economy, pattern recognition, Paul Samuelson, Pearl River Delta, Philip Mirowski, price mechanism, quantitative easing, random walk, rent control, rent-seeking, road to serfdom, Ronald Reagan, special economic zone, statistical model, The Chicago School, the market place, The Wealth of Nations by Adam Smith, theory of mind, Thomas L Friedman, trade liberalization, urban renewal, Washington Consensus, Wolfgang Streeck, zero-sum game

As we ­will see, neoliberals would aid in the campaign to contain demands for social and economic rights and to institutionalize a parallel global regime in which the investor and the corporation—­and not the citizen or refugee—­was the paradigmatic rights-­bearing subject. 4 A World of Rights Exchange control in time of peace should be considered an act of aggression and a violation of ­human rights in international law. —­p hilip cortney, 1949 M idway through The Road to Serfdom, the book he published in 1944 that made him famous, F. A. Hayek inserted a commentary on ­human rights. His target was specifically the expansive “Declaration of Rights” published by the author and public intellectual H. G. Wells in 1939, a list of eleven articles including the right to education, food, health care, and employment.1 Hayek did not object so much to the material provisions. His own proposal included ele­ments of a basic social safety net and even countercyclical state spending.2 As libertarians l­ater lamented, The Road to Serfdom called for “the security of a minimum income” and “a comprehensive system of social insurance.”3 What galled Hayek was Wells’s combination of the language of rights with a program of centralized economic decision making.

Frederick Cooper and Laura Ann Stoler (Berkeley: University of California Press, 1997), 406–435. 56. Frederick Cooper, “Alternatives to Nationalism in French Africa, 1945–1960,” in Elites and Decolonization in the Twentieth ­Century, ed. Jost Dülffer and Marc Frey (New York: Palgrave Macmillan, 2011), 116. 57. F. A. Hayek, The Road to Serfdom (London: Routledge and Sons, 1944), 238. 58. Michael A. Heilperin, “Review: World Economic Development by Eugene Staley,” American Po­liti­cal Science Review 39, no. 1 (1945): 190. 59. Hayek, The Road to Serfdom, 239. 60. The word “federation” does not appear in Bruce Caldwell, Hayek’s Challenge: An Intellectual Biography of F. A. Hayek (Chicago: University of Chicago Press, 2004), in Alan O. Ebenstein, Hayek’s Journey: The Mind of Friedrich Hayek (New York: Palgrave Macmillan, 2003), or in Edward Feser, ed., The Cambridge companion to Hayek (New York: Cambridge University Press, 2006).

Hayek, “The Pres­ent State of the Debate,” in Collectivist Economic Planning, ed. F. A. Hayek (London: Routledge and Kegan Paul, 1935), 241. 125. Ibid. 4. A WORLD OF RIGHTS 1. F. A. Hayek, The Road to Serfdom (London: Routledge and Sons, 1944), 88. See also Roger Normand and Sarah Zaidi, ­Human Rights at the UN: The Po­liti­cal History of Universal Justice (Bloomington: Indiana University Press, 2008), 77. 2. See, for example, Hans-­Hermann Hoppe, who writes that “Hayek’s view regarding the role of market and state cannot systematically be distinguished from that of a social demo­crat.” Hans-­Hermann Hoppe, “F. A. Hayek on Government and Social Evolution: A Critique,” Review of Austrian Economics 7, no. 1 (1994): 67. 3. Hayek, The Road to Serfdom, 124–125. 4. Ibid., 88. See also Normand and Zaidi, ­Human Rights at the UN, 77. 5. Barbara Wootton, “Economic Prob­lems of Federal Union,” New Commonwealth Quarterly 5, no. 2 (September 1939): 150–156; Jan Herman Bur­gers, “The Road to San Francisco: The Revival of the ­Human Rights Idea in the Twentieth C ­ entury,” ­Human Rights Quarterly 14, no. 4 (November 1992): 465; Or Rosenboim, “Barbara Wootton, Friedrich Hayek and the Debate on Demo­cratic Federalism in the 1940s,” International History Review 36, no. 5 (2014): 910. 6.


pages: 434 words: 117,327

Can It Happen Here?: Authoritarianism in America by Cass R. Sunstein

active measures, affirmative action, Affordable Care Act / Obamacare, airline deregulation, anti-communist, anti-globalists, availability heuristic, business cycle, Cass Sunstein, David Brooks, Donald Trump, Edward Snowden, Estimating the Reproducibility of Psychological Science, failed state, Filter Bubble, Francis Fukuyama: the end of history, ghettoisation, illegal immigration, immigration reform, Isaac Newton, job automation, Joseph Schumpeter, Long Term Capital Management, Nate Silver, Network effects, New Journalism, night-watchman state, obamacare, Potemkin village, random walk, Richard Thaler, road to serfdom, Ronald Reagan, the scientific method, War on Poverty, WikiLeaks, World Values Survey

Our twenty-first-century challenge is to respond in the spirit of the founders—and adapt the principles of checks and balances so that emergency powers may be invoked when “the public safety may require it.” At that same time, we must prevent the exercise of extraordinary authority from destroying the very constitutional order the declaration of emergency purports to protect. Are we equal to the challenge? Another Road to Serfdom: Cascading Intolerance Timur Kuran In one of the most influential books of the twentieth century, The Road to Serfdom, Friedrich Hayek warned against the dangers of state control over the economy. He was writing during World War II, a time when collectivists on the left were extinguishing private property and those on the right were empowering the state with expanding rights of ownership and management. The horrors of Stalin, Hitler, and Mussolini were widely apparent.

Sunstein Beyond Elections: Foreign Interference with American Democracy by Samantha Power Paradoxes of the Deep State by Jack Goldsmith How We Lost Constitutional Democracy by Tom Ginsburg and Aziz Huq On “It Can’t Happen Here” by Noah Feldman Authoritarianism Is Not a Momentary Madness, But an Eternal Dynamic Within Liberal Democracies by Karen Stenner and Jonathan Haidt States of Emergency by Bruce Ackerman Another Road to Serfdom: Cascading Intolerance by Timur Kuran The Resistible Rise of Louis Bonaparte by Jon Elster Could Mass Detentions Without Process Happen Here? by Martha Minow The Commonsense Presidency by Duncan J. Watts Law and the Slow-Motion Emergency by David A. Strauss How Democracies Perish by Stephen Holmes “It Can’t Happen Here”: The Lessons of History by Geoffrey R. Stone Acknowledgments Contributor Biographies Notes Index About the Author Copyright About the Publisher Contents Cover Title Page Introduction The Dictator’s Handbook, US Edition by Eric A.

Sunstein Beyond Elections: Foreign Interference with American Democracy by Samantha Power Paradoxes of the Deep State by Jack Goldsmith How We Lost Constitutional Democracy by Tom Ginsburg and Aziz Huq On “It Can’t Happen Here” by Noah Feldman Authoritarianism Is Not a Momentary Madness, But an Eternal Dynamic Within Liberal Democracies by Karen Stenner and Jonathan Haidt States of Emergency by Bruce Ackerman Another Road to Serfdom: Cascading Intolerance by Timur Kuran The Resistible Rise of Louis Bonaparte by Jon Elster Could Mass Detentions Without Process Happen Here? by Martha Minow The Commonsense Presidency by Duncan J. Watts Law and the Slow-Motion Emergency by David A. Strauss How Democracies Perish by Stephen Holmes “It Can’t Happen Here”: The Lessons of History by Geoffrey R. Stone Acknowledgments Contributor Biographies Notes Index About the Author Copyright About the Publisher Introduction Cass R.


pages: 453 words: 111,010

Licence to be Bad by Jonathan Aldred

"Robert Solow", Affordable Care Act / Obamacare, Albert Einstein, availability heuristic, Ayatollah Khomeini, Benoit Mandelbrot, Berlin Wall, Black Swan, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Cass Sunstein, clean water, cognitive dissonance, corporate governance, correlation does not imply causation, cuban missile crisis, Daniel Kahneman / Amos Tversky, Donald Trump, Douglas Engelbart, Douglas Engelbart, Edward Snowden, Fall of the Berlin Wall, falling living standards, feminist movement, framing effect, Frederick Winslow Taylor, From Mathematics to the Technologies of Life and Death, full employment, George Akerlof, glass ceiling, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, Jeff Bezos, John Nash: game theory, John von Neumann, Long Term Capital Management, Louis Bachelier, mandelbrot fractal, meta analysis, meta-analysis, Mont Pelerin Society, mutually assured destruction, Myron Scholes, Nash equilibrium, Norbert Wiener, nudge unit, obamacare, offshore financial centre, Pareto efficiency, Paul Samuelson, plutocrats, Plutocrats, positional goods, profit maximization, profit motive, race to the bottom, RAND corporation, rent-seeking, Richard Thaler, ride hailing / ride sharing, risk tolerance, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, Skype, Social Responsibility of Business Is to Increase Its Profits, spectrum auction, The Nature of the Firm, The Wealth of Nations by Adam Smith, transaction costs, trickle-down economics, Vilfredo Pareto, wealth creators, zero-sum game

Hayek had been catapulted from obscurity to celebrity after the publication of his book The Road to Serfdom in 1944. His core argument was that the prevailing trend towards central planning and a larger role for government in the economy would set Britain on a road that ultimately led to the totalitarianism of Nazi Germany. The Road to Serfdom sold out within a few days of publication, and wartime paper shortages meant that reprints over the next year or so never kept up with demand. The book’s controversial message led it to be turned down by three US publishers, until a Chicago economist – the aptly named Aaron Director – persuaded the University of Chicago Press to take it on. Director published relatively little under his own name but, as well as his role in The Road to Serfdom, he was a guiding hand behind the work of several key thinkers, including Milton Friedman, his brother-in-law.

Director published relatively little under his own name but, as well as his role in The Road to Serfdom, he was a guiding hand behind the work of several key thinkers, including Milton Friedman, his brother-in-law. As an undergraduate at Yale, Director had been an anti-establishment iconoclast who, with his close friend the painter Mark Rothko, produced an underground newspaper called the Yale Saturday Evening Pest. In later life, though, Director was sufficiently conservative that he described Friedman, adviser to conservatives Reagan and Thatcher, as ‘my radical brother-in-law’.1 The Road to Serfdom was a great success in the United States. Just as in Britain, the publishers had to battle the paper-rationing authorities to print enough copies to meet demand. But in April 1945 the Reader’s Digest published a condensed twenty-page version with a print run of several million copies. At that moment, Hayek was on a ship bound for New York. When it docked, he was told the modest academic plans for his US visit had been cancelled in favour of a nationwide lecture tour.

The Conservatives were hungry for power and, at a strategy meeting that summer, it was proposed that future party policy should explicitly follow a ‘middle way’, avoiding extremes of Left and Right. Thatcher interrupted, pulling one of Hayek’s books from her bag and holding it up for all to see. ‘This is what we believe,’ she announced, and then slammed it down on the table.4 BATTERY CHICKENS FOR FREEDOM When a British dairy farmer named Antony Fisher read the Reader’s Digest version of The Road to Serfdom, it made a great impression on him. Hayek seemed to share Fisher’s own gut instincts about individual freedom being under threat. Fisher wrote to Hayek to ask what he could do to help, and wondered whether he should go into politics. Hayek told Fisher that he could do something more valuable, explaining that a more powerful role in the ideological battle was played by ‘second-hand dealers in ideas’ – the journalists, political advisers, commentators and intellectuals who shaped and shifted public debate and political thinking.


pages: 662 words: 180,546

Never Let a Serious Crisis Go to Waste: How Neoliberalism Survived the Financial Meltdown by Philip Mirowski

"Robert Solow", Alvin Roth, Andrei Shleifer, asset-backed security, bank run, barriers to entry, Basel III, Berlin Wall, Bernie Madoff, Bernie Sanders, Black Swan, blue-collar work, Bretton Woods, Brownian motion, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, central bank independence, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, complexity theory, constrained optimization, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, dark matter, David Brooks, David Graeber, debt deflation, deindustrialization, do-ocracy, Edward Glaeser, Eugene Fama: efficient market hypothesis, experimental economics, facts on the ground, Fall of the Berlin Wall, financial deregulation, financial innovation, Flash crash, full employment, George Akerlof, Goldman Sachs: Vampire Squid, Hernando de Soto, housing crisis, Hyman Minsky, illegal immigration, income inequality, incomplete markets, information asymmetry, invisible hand, Jean Tirole, joint-stock company, Kenneth Arrow, Kenneth Rogoff, Kickstarter, knowledge economy, l'esprit de l'escalier, labor-force participation, liberal capitalism, liquidity trap, loose coupling, manufacturing employment, market clearing, market design, market fundamentalism, Martin Wolf, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, Naomi Klein, Nash equilibrium, night-watchman state, Northern Rock, Occupy movement, offshore financial centre, oil shock, Pareto efficiency, Paul Samuelson, payday loans, Philip Mirowski, Ponzi scheme, precariat, prediction markets, price mechanism, profit motive, quantitative easing, race to the bottom, random walk, rent-seeking, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, school choice, sealed-bid auction, Silicon Valley, South Sea Bubble, Steven Levy, technoutopianism, The Chicago School, The Great Moderation, the map is not the territory, The Myth of the Rational Market, the scientific method, The Wisdom of Crowds, theory of mind, Thomas Kuhn: the structure of scientific revolutions, Thorstein Veblen, Tobin tax, too big to fail, transaction costs, Vilfredo Pareto, War on Poverty, Washington Consensus, We are the 99%, working poor

., p. 3; Arnsperger, Critical Political Economy, p. 90. 144 Hayek, The Road to Serfdom, p. 164. 145 Hayek, The Constitution of Liberty, p. 376; Hayek, The Road to Serfdom, p. 77, 30, 290–91. What is regarded as wickedly radical in science studies, is propounded as eminently conservative by the Hayek wing of neoliberalism. 146 Hayek, The Constitution of Liberty, p. 378, my italics. This explains why neoliberals tend to diverge from their predecessors: “most nineteenth century liberals were guided by a naïve overconfidence in what mere communication of knowledge could achieve” (p. 377). 147 Hayek, The Road to Serfdom, pp. 204–5. 148 Hayek reveled in the tough-minded stance of the scholar who disparaged any recourse to the Third Way, most notoriously in his denunciation of the welfare state as just the slippery “Road to Serfdom.” This sets him apart from his contemporary figures like Walter Lippmann, or Keynes, or their modern epigones like Cass Sunstein or Joseph Stiglitz. 149 Hayek, The Constitution of Liberty, p. 377, 112, 110, 22. 150 Schneider, “The Role of the Category of Ignorance in Sociological Theory,” p. 498. 151 Ibid., p. 500. 152 Hayek entertained the possibility of blaming “the engineers” for the frustration of the neoliberal project in his Counterrevolution of Science (1952), but subsequently came around to the position that it was politically unwise to demonize such a powerful constituency in the twentieth-century economy.

When doctrines persist against all odds, say, in a worldwide economic crisis; when knowledge and power converge in stasis, then surely there is something that demands explication. Do Zombies Dream of Eternal Rest? In the throes of the red-misted nightmare, it looks as if the crisis, otherwise so virulent and corrosive, didn’t manage to kill even one spurious economic notion. This is not exactly news. John Quiggin has entertainingly dubbed the phenomenon Zombie Economics, and deserves kudos for stressing this point. Incongruously, Friedrich Hayek’s Road to Serfdom has returned to best-seller lists after a long hiatus. Even Ayn Rand has apparently enjoyed a new lease on (undead) life. One can readily agree with Colin Crouch: “What remains of Neoliberalism after the financial crisis? The answer must be ‘virtually everything.’”19 Similarly, a glut of crisis books has been pouring from every possible digital delivery system of publishers. They fall from the presses, not stillborn, but clone-dead.

Although it is undeniably the case that all manner of secondhand purveyors of ideas on the right would wish to crow that “market freedom” promotes their own brand of religious righteousness, or maybe even the converse, it nonetheless debases comprehension to conflate the two by disparaging both as “fundamentalism”—a sneer unfortunately becoming commonplace on the left. It seems very neat and tidy to assert that neoliberals operate in a modus operandi on a par with religious fundamentalists: just slam The Road to Serfdom (or if you are really Low-to-No Church, Atlas Shrugged) on the table along with the King James Bible, and then profess to have unmediated personal access to the original true meaning of the only (two) book(s) you’ll ever need to read in your lifetime. Counterpoising morally confused evangelicals with the reality-based community may seem tempting to some; but it dulls serious thought. It may sometimes feel that a certain market-inflected personalized version of Salvation has become more prevalent in Western societies, but that turns out to be very far removed from the actual content of the neoliberal program.


pages: 267 words: 70,250

Defending the Free Market: The Moral Case for a Free Economy by Robert A. Sirico

Affordable Care Act / Obamacare, barriers to entry, Berlin Wall, corporate governance, creative destruction, delayed gratification, Fall of the Berlin Wall, George Gilder, Gordon Gekko, greed is good, happiness index / gross national happiness, Hernando de Soto, informal economy, Internet Archive, liberation theology, means of production, moral hazard, obamacare, On the Revolutions of the Heavenly Spheres, profit motive, road to serfdom, zero-sum game

Class envy and class warfare can, have, and will again give way to class encounter and cooperative creativity within a competitive marketplace. During World War II, economist Friedrich Hayek warned about “the road to serfdom,” a road marked by increasing government control of the economy. The United States has been on that road for many years now. But there is another road, a road to freedom, a road that we can reach and walk if we marshal the old virtues of fortitude and thrift and courage to make the journey. The chapters that follow will continue to limn the contours of such a journey, both its pitfalls and its promise. Suggestions for Further Reading F. A. Hayek, The Road to Serfdom, 50th anniversary ed. (University of Chicago, 1994). Paul Heyne, The Economic Way of Thinking (Prentice Hall, 2005). Instruction on Certain Aspects of the “Theology of Liberation” (Congregation for the Doctrine of the Faith, 1984), available at www.vaticanva/roman_curia/congregations/cfaith/documents/rc_con_cfaith_doc_19840806_theology-liberation_en.html.

They have missed a lesson of history that eluded me for a long time as well: lose your economic freedom, and soon enough you will lose your other freedoms as well. Friedrich Hayek, an Austrian economist who would go on to win the Nobel Prize, described the process in a book he wrote during World War II. As Hayek explained, people don’t intend to trade away their most basic freedoms. They just want more economic equality and more financial security. But the result is always the same, as Hayek made clear in the title of his book—The Road to Serfdom. Unless the relationship between “personal” and “economic” freedom is really understood, both can easily be lost. Sometimes even people who speak the same language do not understand one another. My undergraduate studies were enriched by a year I spent living and studying in England. It was particularly educational—sometimes funny, sometimes confusing, and sometimes embarrassing—to discover linguistic differences between British and American idioms.

Today, the U.S. government owns or guarantees the majority of mortgages in the United States—and more than 90 percent of new mortgages.12 Where people are free to own and use property, tyranny can never hold sway. When people begin to sacrifice the rights of property and exchange—their economic freedom—for some other perceived good such as security or equality, they take a step down Hayek’s road to serfdom. The lesson of history is plain. People who value political and religious liberty will ignore the value of economic liberty only at their peril. Suggestions for Further Reading Lord Acton, The History of Freedom, Parts I and II, available online at http://www.acton.org/research/history-freedom-antiquity and http://www.acton.org/research/history-freedom-christianity. The Birth of Freedom Documentary (Acton Media, 2008).


pages: 495 words: 144,101

Goddess of the Market: Ayn Rand and the American Right by Jennifer Burns

anti-communist, bank run, barriers to entry, centralized clearinghouse, collective bargaining, creative destruction, desegregation, feminist movement, financial independence, George Gilder, invisible hand, jimmy wales, Joan Didion, John Markoff, Joseph Schumpeter, knowledge worker, laissez-faire capitalism, lone genius, Menlo Park, minimum wage unemployment, Mont Pelerin Society, new economy, Norman Mailer, offshore financial centre, Ponzi scheme, profit motive, RAND corporation, rent control, road to serfdom, Robert Bork, rolodex, Ronald Reagan, side project, Stewart Brand, The Chicago School, The Wisdom of Crowds, union organizing, urban renewal, white flight, Whole Earth Catalog

Like Rand, he warned, “The forces which have destroyed freedom in Germany are also at work here.”10 He shared her distrust of “the common good” and titled one of his chapters “Individualism and Collectivism.” The reception of their work was also similar, for Hayek was snubbed by intellectuals yet embraced by businessmen and other Americans nervous about the implications of the New Deal. Both The Fountainhead and Road to Serfdom were even made into comic books, a testimony to their wide appeal. The Road to Serfdom launched Hayek on a remarkable career as an intellectual and organizer that would culminate with his winning the 1974 Nobel Prize in Economics. The book’s popularity caught the attention of the Kansas City–based Volker Fund, a newly active libertarian foundation, which eventually helped Hayek secure a position at the University of Chicago, a lone academic redoubt for libertarian ideas.

Fones-Wolf, Selling Free Enterprise: The Business Assault on Labor and Liberalism, 1945–60 (Chicago: University of Illinois Press, 1994). 9. “Balzar’s Hot Bargains for Cool Meals,” August 5–7, 1946, Hollywood, CA, ARP 095–49x; Ralph C. Nehls to AR, December 18, 1949, ARP 004–15A; The Houghton Line, April-May 1944, ARP 092–12x. 10. F. A. Hayek, The Road to Serfdom (Chicago: University of Chicago Press, 1944), 3. For the reception of Road to Serfdom, see Alan Ebenstein, Friedrich Hayek (Chicago: University of Chicago Press, 2001). Hayek’s career and thought are described in Bruce Caldwell, Hayek’s Challenge: An Intellectual Biography of F. A. Hayek (Chicago: University of Chicago Press, 2003). 11. It is hard to exaggerate the institutional centrality of the University of Chicago to diverse strains of conservative thought.

A top executive at the Meeker Company, a leather goods company in Joplin, Missouri, distributed copies of Roark’s courtroom speech to his friends and business acquaintances.9 Much as Rand had always wished, capitalists were finally promoting her work of their own volition. Business conservatives were also drawn to another best-selling book attacking state control of the economy, F. A. Hayek’s Road to Serfdom. Written for a British audience, Hayek’s book unexpectedly caught the attention of Americans, and he was mobbed by enthusiastic crowds when he toured the United States in 1944. Hayek made arguments very similar to those Rand had advanced during her post-Willkie activism. He tied his laissez-faire beliefs to the broader international situation, arguing that any movement toward state regulation of the economy would ultimately culminate in full-blown socialism and dictatorship.


pages: 372 words: 92,477

The Fourth Revolution: The Global Race to Reinvent the State by John Micklethwait, Adrian Wooldridge

Admiral Zheng, affirmative action, Affordable Care Act / Obamacare, Asian financial crisis, assortative mating, banking crisis, barriers to entry, battle of ideas, Berlin Wall, Bernie Madoff, Boris Johnson, Bretton Woods, British Empire, cashless society, central bank independence, Chelsea Manning, circulation of elites, Clayton Christensen, Corn Laws, corporate governance, credit crunch, crony capitalism, Deng Xiaoping, Detroit bankruptcy, disintermediation, Edward Snowden, Etonian, failed state, Francis Fukuyama: the end of history, full employment, Gunnar Myrdal, income inequality, Khan Academy, Kickstarter, knowledge economy, Kodak vs Instagram, labor-force participation, laissez-faire capitalism, land reform, liberal capitalism, Martin Wolf, means of production, minimum wage unemployment, mittelstand, mobile money, Mont Pelerin Society, Nelson Mandela, night-watchman state, Norman Macrae, obamacare, oil shale / tar sands, old age dependency ratio, open economy, Parag Khanna, Peace of Westphalia, pension reform, pensions crisis, personalized medicine, Peter Thiel, plutocrats, Plutocrats, popular capitalism, profit maximization, rent control, rent-seeking, ride hailing / ride sharing, road to serfdom, Ronald Coase, Ronald Reagan, school choice, school vouchers, Silicon Valley, Skype, special economic zone, too big to fail, total factor productivity, War on Poverty, Washington Consensus, Winter of Discontent, working-age population, zero-sum game

Broadly speaking, the state acted only to help those who could not help themselves. It left the adult citizen alone.” Today the sensible, law-abiding Englishman cannot pass through an hour, let alone a lifetime, without noticing the existence of the state. There have been periodic attempts to stop the supersizing of the state. In 1944 Friedrich Hayek warned that the state was in danger of crushing the society that gave it life in The Road to Serfdom. This provided an important theme for conservative politicians from then onward. In 1975 California’s current governor, Jerry Brown, in an earlier incarnation, declared an “era of limits.” This worry about “limits” profoundly reshaped thinking about the state for the next decade and a half. In the 1990s people on both the Left and the Right assumed that globalization would trim the state: Bill Clinton professed the age of big government to be over.

For most of the previous two decades the resistance to big government had been headquartered in Europe rather than in America. The founding father of “the Austrian school” was Ludwig von Mises, who told government officials, “You are not the vicars of a god called ‘the State.’ ”3 During the Second World War, Karl Popper labored away on The Open Society and Its Enemies in far-off New Zealand, while in blitzed London his friend Friedrich Hayek, a pupil of von Mises, produced The Road to Serfdom in 1944, worrying that the book would sink without a trace because of paper shortages. In fact it was an instant best seller—and eventually converted millions to the idea that the overmighty state was an oppressor. Hayek was more than just a scribbler: Like the Webbs he had a talent for organization. He also believed that an elite of farsighted thinkers could change the entire climate of ­opinion through “permeation.”

The trick was to reeducate the broad ­intelligentsia—the people whom he memorably dubbed the “second-hand dealers” in ideas—and to build think tanks that could apply free-market principles to practical problems as they emerged: not just when the mood took them but day after day and decade after decade. In 1947 Hayek helped found the Mont Pelerin Society to bring the global vanguard together. Mont Pelerin was in the Swiss Alps, but the future of the coun­terrevolution lay across the Atlantic. America had a much stronger ­tradition of individualism than Europe—and far more money for foundations and journals. The Road to Serfdom sold better in the United States than anywhere else—indeed, the Reader’s Digest condensed and serialized it—and in 1950 Hayek moved from the London School of Economics to the University of Chicago. Oddly, he was employed there by an esoteric outfit called the Committee on Social Thought, but the real center of the counterrevolution against Keynesianism was the economics department. A stream of luminaries hacked away at the status quo: Frank Knight demonstrated that social reform was often counterproductive; Ronald Coase (another LSE import) and George Stigler argued that regulators were frequently captured by the people whom they regulated; Gary Becker invented the economics of human capital; James Buchanan and Gordon Tullock demonstrated that bureaucrats were motivated by the same profit-maximizing instincts as businesspeople.4 But nobody wielded the ax more vigorously than Friedman.


pages: 298 words: 95,668

Milton Friedman: A Biography by Lanny Ebenstein

"Robert Solow", affirmative action, banking crisis, Berlin Wall, Bretton Woods, business cycle, Deng Xiaoping, Fall of the Berlin Wall, fiat currency, floating exchange rates, Francis Fukuyama: the end of history, full employment, Hernando de Soto, hiring and firing, inflation targeting, invisible hand, Joseph Schumpeter, Kenneth Arrow, Lao Tzu, liquidity trap, means of production, Mont Pelerin Society, Myron Scholes, Pareto efficiency, Paul Samuelson, Ponzi scheme, price stability, rent control, road to serfdom, Robert Bork, Ronald Coase, Ronald Reagan, Sam Peltzman, school choice, school vouchers, secular stagnation, Simon Kuznets, stem cell, The Chicago School, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Wealth of Nations by Adam Smith, Thorstein Veblen, zero-sum game

This was Friedman’s first trip outside of the United States. He considers his attendance at this meeting to have been important in his growing interest in public policy from an explicitly libertarian, or classical liberal, point of view. Others from Chicago to attend this meeting were Frank Knight, Aaron Director, and Friedrich Hayek. Hayek, the author of the 1944 international best-seller The Road to Serfdom, had organized the meeting. He joined the Committee on Social Thought at the University of Chicago in 1950, and Friedman attended his seminar frequently; it became another source of his expanding interest in the philosophical foundations of free private property capitalism. Friedman continued to participate in national public policy issues through the 1950s, and his involvement skyrocketed in the 1960s.

It says much about Friedman that his two major popular works have “free” in their titles: Capitalism and Freedom and Free to Choose. Many passages in Capitalism and Freedom contain echoes of Mill, especially from On Liberty, Mill’s great classical liberal and libertarian work. Capitalism and Freedom is a linear descendent of the freedom philosophy enunciated in On Liberty. Together with On Liberty and The Road to Serfdom, Capitalism and Freedom is one of the great brief works in libertarian thought and policy. Animating all these works is their emphasis on the individual—on the importance of each individual and on the moral necessity to treat each human being as someone of utmost worth. Friedman’s focus is individual human freedom. Like Mill, Friedman emphasizes the importance of genius and writes that the great accomplishments in history “were the product of individual genius.”10 Mill’s parallel statement in On Liberty was: “There are but few persons, in comparison with the whole of mankind, whose experiments, if adopted by others, would be likely to be any improvement on established practice.

When Friedman writes that “[e]ven though the men who wield this [state] power initially be of good will and even though they be not corrupted by the power they exercise, the power will both attract and form men of a different stamp,”23 he could practically be paraphrasing Hayek, who held that in a collectivist society, “the worst get on top.”24Like Hayek, Friedman terms his own position liberal (in a nineteenth-century sense), not conservative. Friedman refers to Hayek in the text of Capitalism and Freedom: “Recognizing the implicit threat to individualism, the intellectual descendants of the Philosophical Radicals—Dicey, Mises, Hayek, and Simons, to mention only a few—feared that a continued movement toward centralized control of economic activity would prove The Road to Serfdom, as Hayek entitled his penetrating analysis of the process.” When Friedman says that “the great threat to freedom is the concentration of power,”25 he expresses an idea similar to that of Hayek, who said: “It is not the source but the limitation of power which prevents it from being arbitrary.”26 From America’s founding fathers, Friedman was impressed, like so many others, by the idea of limited government.


pages: 261 words: 81,802

The Trouble With Billionaires by Linda McQuaig

"Robert Solow", battle of ideas, Bernie Madoff, Big bang: deregulation of the City of London, British Empire, Build a better mousetrap, carried interest, collateralized debt obligation, computer age, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, Douglas Engelbart, Douglas Engelbart, employer provided health coverage, financial deregulation, fixed income, full employment, George Akerlof, Gini coefficient, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of the telephone, invention of the wheel, invisible hand, Isaac Newton, Jacquard loom, Joseph-Marie Jacquard, laissez-faire capitalism, land tenure, lateral thinking, Mark Zuckerberg, market bubble, Martin Wolf, mega-rich, minimum wage unemployment, Mont Pelerin Society, Naomi Klein, neoliberal agenda, Northern Rock, offshore financial centre, Paul Samuelson, plutocrats, Plutocrats, Ponzi scheme, pre–internet, price mechanism, purchasing power parity, RAND corporation, rent-seeking, rising living standards, road to serfdom, Ronald Reagan, The Chicago School, The Spirit Level, The Wealth of Nations by Adam Smith, Tobin tax, too big to fail, trickle-down economics, Vanguard fund, very high income, wealth creators, women in the workforce

Those efforts were put on hold by the war, as successful wartime state planning left their free-market theories even further out of favour with the public. With the stunning wartime popularity of the Beveridge report, Hayek was going against the tide in 1944 when he published The Road to Serfdom, arguing, provocatively, that the overgrown British state would ultimately lead to German-style totalitarianism. The book sparked considerable controversy and public interest, even winning qualified praise from Keynes, and brought Hayek intellectual acclaim. But its fervent market-oriented ideas were out of sync with the times. Still, the book became a bible of the libertarian movement, keeping the flame of pro-market economics alive in an era dominated by Keynesian thought. The Road to Serfdom also aroused interest among the economic conservatives at the University of Chicago, which published it and brought Hayek on a tour of the United States in April 1945.

So while the Mont Pelerin Society was focused on long-term efforts to change the intellectual mindset, these business organizations offered more direct, practical efforts to shape public views and lobby for pro-market choices. Probably most important of all was the network of think-tanks established by British farming entrepreneur Antony Fisher, whom Milton Friedman later credited with being ‘the single most important person ‌in the development of Thatcherism’.23 Inspired by Hayek’s ideas after reading a Reader’s Digest condensation of The Road to Serfdom, Fisher had considered going into politics to promote the free-market cause. But Hayek talked him out of it, explaining, Fisher later recalled, ‘that the decisive influence in the battle of ideas and policy was wielded by intellectuals whom he characterized as the “second-hand dealers in ideas”.’ Hayek urged Fisher instead to form an academic research organization ‘to supply intellectuals in universities, schools, journalism and broadcasting with authoritative studies of the economic theory of markets and ‌its application to practical affairs’.24 Fisher followed Hayek’s advice, establishing the Institute of Economic Affairs (IEA), which was to become hugely influential in shaping British public attitudes as the years went on.

But, of course, these wealthy interests – and the economists who champion their agenda – never acknowledge self-interest as a factor in the formulation of conservative economic views. Rather, the case for embracing the marketplace and eschewing state-run social programmes is presented as intimately tied up with liberty. Hayek became the high priest of the conservative movement back in 1944 when he built the case that adopting the welfare state was nothing less than the ‘road to serfdom’. But it’s difficult to avoid the suspicion that deep-down conservatives are actually just self-interested in arguing for the unleashing of market forces. As Galbraith memorably put it: ‘The modern conservative is engaged in one of man’s oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness.’ Certainly, it’s not hard to imagine this in the case of immensely wealthy individuals, such as the multi-billionaire Koch brothers, whose oil interests have benefited from the campaigns they’ve funded to dismantle environmental controls and block action on climate change.


pages: 525 words: 146,126

Ayn Rand Cult by Jeff Walker

affirmative action, anti-communist, Ayatollah Khomeini, Berlin Wall, buy and hold, credit crunch, deindustrialization, dematerialisation, Doomsday Book, Elliott wave, George Gilder, Jane Jacobs, laissez-faire capitalism, market fundamentalism, Mont Pelerin Society, price stability, Ralph Waldo Emerson, road to serfdom, Ronald Reagan, Saturday Night Live, school vouchers, Torches of Freedom

American columnist Walter Lippmann formed a pre-World War II prototype of what would become the Mont Pèlerin Society. Classical liberalism may have appeared dead and socialism unstoppable by 1940 but socialism’s intellectual undoing and economic liberalism’s re-tooling were already under way. Friedrich Hayek’s Road to Serfdom made a huge splash in 1944, doubtless helping out sales of The Fountainhead. Hayek’s book moved American conservatism in a more libertarian direction. Briton Antony Fisher, inspired by Road to Serfdom, would write his own book and then go on, by means of the several influential think-tanks he founded, to become the most important architect of what would later be ideological Thatcherism. The founding of the Mont Pèlerin Society in 1945 marked a decisive point in liberalism’s resurgence. Hayek’s Mont Pèlerin-based movement became the Fabian Society of renewed classical liberalism.

Rand moves to New York City for Broadway production. 1935 Night of January 16th has a successful run on Broadway. 1936 We the Living published. 1938 Anthem published in Britain. 1940 Rand campaigns for Republican presidential candidate Wendell Willkie. Rand meets and befriends Isabel Paterson. 1941 December, Rand finally finds publisher for The Fountainhead. 1943 The Fountainhead published. The God of the Machine by Isabel Paterson published. The Discovery of Freedom by Rose Wilder Lane published. Rand sells the film rights to The Fountainhead for $50,000. 1944 The Road To Serfdom by Friedrich Hayek published. Rand moves back to Hollywood, writes screenplays for Hal Wallis studio. 1947 Rand testifies as a friendly witness before HUAC. Rand breaks with her friend and mentor Isabel Paterson. First meeting of the Mont Pèlerin Society in Switzerland. 1949 Fountainhead movie released. 1950 Nathan Blumenthal (Nathaniel Branden) and Barbara Weidman meet Rand in Los Angeles. 1951 The Brandens move from Los Angeles to New York City, and the O’Connors soon follow.

We maintain that the very foundations of our way of life is what we call free enterprise—the profit system,” but when someone accumulates a little profit, “we do our best to make him feel that he ought to be ashamed.” It’s a Christian precept that “poverty is somehow associated with virtue” and a millionaire has to “expiate his sin” by charitable giving. Where McCall gripes, John Galt will thunder in outrage. Saint-Simon’s Parable via Friedrich Hayek (1941) Hayek’s extraordinarily influential defense of economic liberalism against creeping socialism, The Road To Serfdom, was published in 1944. Ayn Rand was already mapping out her post-Fountainhead novel by then. Just prior to the outset of that process, a time when Rand had recently forged all kinds of contacts with free-market thinkers who would have been recommending relevant books and articles to her, a 1941 issue of Economica featured a Hayek essay that recounted the so-called parable of Henri de Saint-Simon.2 The latter was mentor to sociologist Auguste Comte, who would found a positivist sect intent on applying science to society and “in which the material benefactors of mankind replaced the hierarchy of saints.”


pages: 261 words: 64,977

Pity the Billionaire: The Unexpected Resurgence of the American Right by Thomas Frank

Affordable Care Act / Obamacare, bank run, big-box store, bonus culture, business cycle, collateralized debt obligation, collective bargaining, commoditize, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, Deng Xiaoping, financial innovation, housing crisis, invisible hand, Kickstarter, money market fund, Naomi Klein, obamacare, payday loans, profit maximization, profit motive, road to serfdom, Robert Bork, Ronald Reagan, shareholder value, strikebreaker, The Chicago School, The Myth of the Rational Market, Thorstein Veblen, too big to fail, union organizing, Washington Consensus, white flight, Works Progress Administration

Parsing a recent performance by his former fave British rock band Muse on his radio show in February 2011, the host declared that he had changed his mind about the group, that for all their rebel lyrics they didn’t get what the conservative revival was about after all. Why didn’t they get it? Because they were Europeans. And Europeans, as everyone knew, have had very few glimpses of real freedom. Even when England won the Second World War, they didn’t go into freedom. That’s where the Road to Serfdom came from. Because Winston Churchill and many others all said, wait, what are you doing? We’re going the wrong direction. And it didn’t go to freedom, it went to the Road to Serfdom. Beck is correct that The Road to Serfdom, the famous 1944 book by the Austrian economist Friedrich Hayek, was written as a critique of British politics, a warning that Labour Party socialism might lead eventually to totalitarianism. The book’s weakest point, as critics have observed over the years, is that Hayek’s main prediction never came true.

See also deregulation; and specific agencies attack on Depression and enforcement and financial crisis and Obama and Rand and utopian capitalism vs. Republican Party elections of 1994 and elections of 2008 and elections of 2010 and expectations of, in 2008 TARP and Tea Party and revival of Return of Depression Economics, The (Krugman) Rivera, David Road to Serfdom, The (Hayek) Romer, Christina Romney, Mitt Roosevelt, Franklin Beck and “forgotten man” and Obama and RFC and Ryan and Rothenberg, Stu Rubin, Robert Rules for Radical Conservatives (“Kahane”) “ruling class” Rush Limbaugh Is a Big Fat Idiot (Franken) Ryan, Paul same-sex marriage Samuelson, Robert Santelli, Rick Saving Freedom (DeMint) Schlesinger, Arthur Schwarzenegger, Arnold Schweikert, David Schweitzer, Mark Securities and Exchange Commission (SEC) Seldes, Gilbert Sex Pistols Shane, Scott Shlaes, Amity shock therapy Slouching Towards Gomorrah (Bork) “Small Business Bill of Rights” small business.


pages: 275 words: 77,955

Capitalism and Freedom by Milton Friedman

affirmative action, Berlin Wall, central bank independence, Corn Laws, Deng Xiaoping, floating exchange rates, Fractional reserve banking, full employment, invisible hand, Joseph Schumpeter, liquidity trap, market friction, minimum wage unemployment, price discrimination, rent control, road to serfdom, Ronald Reagan, secular stagnation, Simon Kuznets, the market place, The Wealth of Nations by Adam Smith, union organizing

The result of that experiment had been foreshadowed by a number of similar experiments on a smaller scale: Hong Kong and Taiwan versus mainland China; West Germany versus East Germany; South Korea versus North Korea. But it took the drama of the Berlin Wall and the collapse of the Soviet Union to make it part of conventional wisdom, so that it is now taken for granted that central planning is indeed The Road to Serfdom, as Friedrich A. Hayek titled his brilliant 1944 polemic. What is true for the United States and Great Britain is equally true for the other Western advanced countries. In country after country, the initial postwar decades witnessed exploding socialism, followed by creeping or stagnant socialism. And in all these countries the pressure today is toward giving markets a greater role and government a smaller one.

No, the different reception of the later book and the success of the TV series are common consequences of the change in the climate of opinion. The ideas in our two books are still far from being in the intellectual mainstream, but they are now, at least, respectable in the intellectual community and very likely almost conventional among the broader public. The change in the climate of opinion was not produced by this book or the many others, such as Hayek’s Road to Serfdom and Constitution of Liberty, in the same philosophical tradition. For evidence of that, it is enough to point to the call for contributions to the symposium Capitalism, Socialism and Democracy issued by the editors of Commentary in 1978, which went in part: “The idea that there may be an inescapable connection between capitalism and democracy has recently begun to seem plausible to a number of intellectuals who once would have regarded such a view not only as wrong but even as politically dangerous.”

This tendency to collectivism was greatly accelerated, both in England and elsewhere, by the two World Wars. Welfare rather than freedom became the dominant note in democratic countries. Recognizing the implicit threat to individualism, the intellectual descendants of the Philosophical Radicals Dicey, Mises, Hayek, and Simons, to mention only a few—feared that a continued movement toward centralized control of economic activity would prove The Road to Serfdom, as Hayek entitled his penetrating analysis of the process. Their emphasis was on economic freedom as a means toward political freedom. Events since the end of World War II display still a different relation between economic and political freedom. Collectivist economic planning has indeed interfered with individual freedom. At least in some countries, however, the result has not been the suppression of freedom, but the reversal of economic policy.


pages: 545 words: 137,789

How Markets Fail: The Logic of Economic Calamities by John Cassidy

"Robert Solow", Albert Einstein, Andrei Shleifer, anti-communist, asset allocation, asset-backed security, availability heuristic, bank run, banking crisis, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Black-Scholes formula, Blythe Masters, Bretton Woods, British Empire, business cycle, capital asset pricing model, centralized clearinghouse, collateralized debt obligation, Columbine, conceptual framework, Corn Laws, corporate raider, correlation coefficient, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, Daniel Kahneman / Amos Tversky, debt deflation, different worldview, diversification, Elliott wave, Eugene Fama: efficient market hypothesis, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, full employment, George Akerlof, global supply chain, Gunnar Myrdal, Haight Ashbury, hiring and firing, Hyman Minsky, income per capita, incomplete markets, index fund, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), invisible hand, John Nash: game theory, John von Neumann, Joseph Schumpeter, Kenneth Arrow, Kickstarter, laissez-faire capitalism, Landlord’s Game, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, Louis Bachelier, mandelbrot fractal, margin call, market bubble, market clearing, mental accounting, Mikhail Gorbachev, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, Myron Scholes, Naomi Klein, negative equity, Network effects, Nick Leeson, Northern Rock, paradox of thrift, Pareto efficiency, Paul Samuelson, Ponzi scheme, price discrimination, price stability, principal–agent problem, profit maximization, quantitative trading / quantitative finance, race to the bottom, Ralph Nader, RAND corporation, random walk, Renaissance Technologies, rent control, Richard Thaler, risk tolerance, risk-adjusted returns, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, shareholder value, short selling, Silicon Valley, South Sea Bubble, sovereign wealth fund, statistical model, technology bubble, The Chicago School, The Great Moderation, The Market for Lemons, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, unorthodox policies, value at risk, Vanguard fund, Vilfredo Pareto, wealth creators, zero-sum game

Alvin Hansen, the dean of American Keynesians, had a point when he wrote in The New Republic, “This kind of writing is not scholarship. It is seeing hobgoblins under every bed.” In The Road to Serfdom and in his other works, Hayek neglected to account for some serious failures of the market system. In the 1930s and 1940s, it was already glaringly obvious that ordinary people needed decent medical care, breathable air, and money to retire on, and that the market had failed to provide these things. Why was that? Hayek didn’t offer an answer; he didn’t even seem particularly interested in the question. The alarmist thesis of The Road to Serfdom didn’t get much purchase in Britain, where there was widespread public support for the welfare state, but in the United States, where suspicion of government ran deep, Hayek was hailed as a visionary.

Like Keynes, Beveridge was a member of the Liberal Party rather than a socialist. He agreed with Keynes that capitalism needed adult supervision: left untended, it had produced a worldwide slump and, ultimately, fascism. Hayek never accepted the argument that fascism was a capitalist phenomenon. He saw Stalin and Hitler as two suits in the same closet, and the closet was marked “collectivism.” He dedicated his book The Road to Serfdom “To the Socialists of All Parties,” a clear reference to National Socialism. Much of the book was devoted to central planning. Hayek repeated the arguments about prices and information that he had made in his academic papers, but his main concern was to develop their political implications. When the government has to decide how many pigs are to be raised or how many buses are to be run, these decisions cannot be deduced purely from economic principles, Hayek said.

“It was not reviewed by any American publication other than The American Economic Review,” Friedman later recalled. “I was a full professor at the University of Chicago. I was very well known in the academic world—it is inconceivable that a book on the other side by someone in that same position would not have been reviewed in every publication, the New York Times, the Chicago Tribune.” In many ways, Capitalism and Freedom was an American version of Hayek’s Road to Serfdom. Like Hayek, Friedman portrayed the choices facing democratic societies in stark and simplistic terms. “Fundamentally, there are only two ways of coordinating the economic activities of millions,” he wrote. “One is central direction involving the use of coercion—the technique of the army and of the modern totalitarian state. The other is voluntary co-operation of individuals—the technique of the marketplace.”


pages: 385 words: 111,807

A Pelican Introduction Economics: A User's Guide by Ha-Joon Chang

Affordable Care Act / Obamacare, Albert Einstein, Asian financial crisis, asset-backed security, bank run, banking crisis, banks create money, Berlin Wall, bilateral investment treaty, borderless world, Bretton Woods, British Empire, call centre, capital controls, central bank independence, collateralized debt obligation, colonial rule, Corn Laws, corporate governance, corporate raider, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deindustrialization, discovery of the americas, Eugene Fama: efficient market hypothesis, eurozone crisis, experimental economics, Fall of the Berlin Wall, falling living standards, financial deregulation, financial innovation, Francis Fukuyama: the end of history, Frederick Winslow Taylor, full employment, George Akerlof, Gini coefficient, global value chain, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, Gunnar Myrdal, Haber-Bosch Process, happiness index / gross national happiness, high net worth, income inequality, income per capita, information asymmetry, intangible asset, interchangeable parts, interest rate swap, inventory management, invisible hand, Isaac Newton, James Watt: steam engine, Johann Wolfgang von Goethe, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, knowledge economy, laissez-faire capitalism, land reform, liberation theology, manufacturing employment, Mark Zuckerberg, market clearing, market fundamentalism, Martin Wolf, means of production, Mexican peso crisis / tequila crisis, Nelson Mandela, Northern Rock, obamacare, offshore financial centre, oil shock, open borders, Pareto efficiency, Paul Samuelson, post-industrial society, precariat, principal–agent problem, profit maximization, profit motive, purchasing power parity, quantitative easing, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, Scramble for Africa, shareholder value, Silicon Valley, Simon Kuznets, sovereign wealth fund, spinning jenny, structural adjustment programs, The Great Moderation, The Market for Lemons, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, trade liberalization, transaction costs, transfer pricing, trickle-down economics, Vilfredo Pareto, Washington Consensus, working-age population, World Values Survey

The Austrian school was started by Carl Menger (1840–1921) in the late nineteenth century. Ludwig von Mises (1881–1973) and Friedrich von Hayek (1899–1992) extended the school’s influence beyond its homeland. It gained international attention during the so-called Calculation Debate in the 1920s and the 1930s, in which it battled the Marxists on the feasibility of central planning.14 In 1944, Hayek published an extremely influential popular book, The Road to Serfdom, which passionately warned against the danger of government intervention leading to the loss of fundamental individual liberty. The Austrian school is these days in the same laissez-faire camp with the free-market wing (today the majority) of the Neoclassical school, producing similar, if somewhat more extreme, policy conclusions. However, methodologically it is very different from the Neoclassical school.

The market for carbon emission permits was created only in the 1990s.16 By calling the market a spontaneous order, the Austrians are seriously misrepresenting the nature of the capitalist economy. The Austrian position against government intervention is too extreme. Their view is that any government intervention other than the provision of law and order, especially protection of private property, will launch the society on to a slippery slope down to socialism – a view most explicitly advanced in Hayek’s The Road to Serfdom. This is not theoretically convincing; nor has it been borne out by history. There is a huge gradation in the ways market and the state combine across countries and within countries. Chocolate bars in the US are provided in a much more market-oriented way than is primary school education. South Korea may rely more on market solutions than Britain does in the provision of health care, but the case is the reverse in water or railways.

Individuals can produce whatever will make money for them, using any method of production that maximizes profit, whether footballs made by child workers or microchips made with hi-tech machinery. There is no higher authority – king, pope or the planning minister – to tell individuals what they should want and produce. On this basis, many free-market economists have argued that there is an inseparable link between the freedom of individual consumers to choose and their broader political freedom. Friedrich von Hayek’s seminal critique of socialism, The Road to Serfdom, and Milton Friedman’s passionate advocacy of the free-market system, Free to Choose, are famous examples. Moreover, the individualist view provides a paradoxical but very powerful moral justification of the market mechanism. We as individuals all make choices only for ourselves, the story goes, but the result is the maximization of social welfare. We don’t need individuals to be ‘good’ to run an efficient economy that benefits all its participants.


pages: 105 words: 18,832

The Collapse of Western Civilization: A View From the Future by Naomi Oreskes, Erik M. Conway

anti-communist, correlation does not imply causation, creative destruction, en.wikipedia.org, energy transition, Intergovernmental Panel on Climate Change (IPCC), invisible hand, laissez-faire capitalism, market fundamentalism, mass immigration, means of production, oil shale / tar sands, Pierre-Simon Laplace, road to serfdom, Ronald Reagan, stochastic process, the built environment, the market place

Perhaps because of the horrible violence in the East, many Western intellectuals came to see everything associated with communism as evil, even— and crucially for our story—modest or necessary forms of intervention in the marketplace such as progressive taxation and environmental regulation, and humanitar-ian interventions such as effective and affordable regimes of health care and birth control. Neoliberalism was developed by a group of thinkers— most notably Austrian Friedrich von Hayek and American Milton Friedman—who were particularly sensitive to the issue of repressive centralized government. In two key works, von Hayek’s Road to Serfdom and Friedman’s Capitalism and Freedom, they developed the crucial “neo-” component of neoliberalism: the idea that free market systems were the only economic systems that did not threaten individual liberty. Neoliberalism was initially a minority view. In the 1950s and 1960s, the West experienced high overall prosperity, and individual nations developed mixed economies that suited their own national cultures and contexts.

On twentieth- and twenty-first-century subsidies for fossil fuel production, see http://www.oecd.org/document/57/0, 3746,en_2649_37465_45233017_1_1_1_37465,00.html; and John Vidal, “World Bank: Ditch Fossil Fuel Subsidies to Address Climate Change,” The Guardian, September 21, 2011, http://www.guardian. co.uk/environment/2011/sep/21/world-bank-fossil-fuel-subsidies. 12. Friedrich August von Hayek, The Road to Serfdom, Text and Documents: The Definitive Edition, ed. Bruce Caldwell (Chicago: University of Chicago Press, 2007), 87. Epilogue 1. For estimates of populations at or near sea level at the turn of the twenty-first century, see Don Hinrichsen, “The Coastal Population Explosion,” in The Next 25 Years: Global Issues, prepared for the National Oceanic and Atmospheric Administration Coastal Trends Workshop, 1999, http://oceanservice.noaa.gov/websites/ retiredsites/natdia_pdf/3hinrichsen.pdf; and http://oceanservice.


pages: 282 words: 80,907

Who Gets What — and Why: The New Economics of Matchmaking and Market Design by Alvin E. Roth

Affordable Care Act / Obamacare, Airbnb, algorithmic trading, barriers to entry, Berlin Wall, bitcoin, Build a better mousetrap, centralized clearinghouse, Chuck Templeton: OpenTable:, commoditize, computer age, computerized markets, crowdsourcing, deferred acceptance, desegregation, experimental economics, first-price auction, Flash crash, High speed trading, income inequality, Internet of things, invention of agriculture, invisible hand, Jean Tirole, law of one price, Lyft, market clearing, market design, medical residency, obamacare, proxy bid, road to serfdom, school choice, sealed-bid auction, second-price auction, second-price sealed-bid, Silicon Valley, spectrum auction, Spread Networks laid a new fibre optics cable between New York and Chicago, Steve Jobs, The Wealth of Nations by Adam Smith, two-sided market, uber lyft, undersea cable

. [>] Nigeria: For information about kidney disease in Africa, see Saraladevi Naicker, “End-Stage Renal Disease in Sub-Saharan Africa,” Ethnicity & Disease 19, no. 1 (2009): 13. 12. FREE MARKETS AND MARKET DESIGN [>] tablecloths: I recall discussing tablecloths as an indicator of restaurant types years ago with my late colleague Gerald Salancik, at the University of Illinois. [>] The Road to Serfdom: All the quotes in this section are from F. A. Hayek, The Collected Works of F. A. Hayek, vol. 2, The Road to Serfdom: Text and Documents—The Definitive Edition, ed. Bruce Caldwell (Chicago: University of Chicago Press, 2007). [>] liberal: Hayek in fact wrote of the confusion of terms: “Indeed, what in Europe is or used to be called ‘liberal’ is in the USA today with some justification called ‘conservative’; while in recent times the term ‘liberal’ has been used there to describe what in Europe would be called socialism.

Free Markets How do we square market design with the notion of the “free market” that so many people hold dear? In chapter 1, I made the analogy between a free market with effective rules and a wheel that can rotate freely because it has an axle and well-oiled bearings. I could have been paraphrasing the iconic free-market economist Friedrich Hayek, who in his 1944 free-market manifesto The Road to Serfdom wrote, “There is, in particular, all the difference between deliberately creating a system within which competition will work as beneficially as possible and passively accepting institutions as they are.” He understood that markets need effective rules in order to work freely. Hayek also understood that there is a place for economists to help in understanding how to design markets. Using the word liberal in a slightly different way than we do today (he meant something closer to what we might call libertarian), Hayek wrote, “The attitude of the liberal towards society is like that of the gardener who tends a plant and, in order to create the conditions most favorable to its growth, must know as much as possible about its structure and the way it functions.”

See also trust eBay, 117–19 of restaurants, 220 residency programs for doctors, 7–8, 73, 134–50 couples in, 144–49 empowerment of applicants in, 76–78 gastroenterologist fellowships, 75–78 orthopedic surgeons, 78–80 rural vs. urban, 149–50 resource allocation, 4 restaurants market designs for, 217–20 reservations for, 105 safety of, 220–22 signaling by, 181 risk. See safety of market participation; simplicity; trust Road to Serfdom, The (Hayek), 226–27 Robertson, John, 41–42 Rose Bowl, 61, 63 Roth-Peranson algorithm, 148–49 rules, 7. See also regulation cheating and, 93–98 for college bowl games, 60–65 for judicial clerkships, 92–96 unraveling markets and, 68 Rural Hospitals Theorem, 149–50 safety of market participation, 11, 113–30 in auctions, 182–84, 186–87 clearinghouses and, 112 credit cards in, 23 early transactions and, 60–80 in gastroenterology fellowships, 76–78 information sharing and, 122–28 in Boston Public Schools, 122–28 in clearinghouses, 112 for kidney exchanges, 34, 36, 37, 47–49 market efficiency and, 119–21 for medical residencies, 137–43, 150–51 in New York City schools, 109–10, 112, 153–61 in Internet marketplaces, 105 in kidney exchanges, 34, 36, 47–49, 51–52 for medical residencies, 137–43 privacy and, 119–22 reputation and, 115–16 for restaurants, 220–22 same-sex marriage, 198–99 Scarf, Herb, 32–34 Scheibe, Peter, 38–39 Scheibe, Susan, 38–39 school matching, 8, 165–67 Boston Public Schools, 11, 122–28, 162–65 in China, 165–66 constraints in, 158–61 deferred acceptance algorithm in, 157–61 inequality of schools and, 166–67 New York City school system, 8, 106–10, 112, 122, 153–61 parent preferences in, 150–51 safety of sharing preferences in, 124–30, 153–54 unraveled markets in, 73–74 searches, 6 Securities and Exchange Commission, 85 self-control, 67–68, 74–78 judicial clerkships and, 91, 93–98 as solution to early transactions, 79–80, 135–36 self-interest, 52 sex trade, 114, 214–15 Shapley, Lloyd, 32–34, 141–43, 158 Shim, John, 86, 88, 239 Shmida, Avi, 13 shopping malls, 221 signals and signaling, 6, 169–92 in auctions, 180–89 cheap talk in, 176–77 in college admissions, 169, 170–73 costly, 177–89 of desirability, 178–79 of interest, 178–80 in Internet dating sites, 169, 175–77 in job markets, 173–75 opportunity cost of, 179–80 by restaurants, 181 simplicity, 11, 26–27 in commodity markets, 15–17 in communication, 169–92 in kidney exchanges, 51–52 in navigating the system, 124–26 slavery, 199–200, 201 slippery slope, 204 smartphones Internet market congestion and, 99–106 as marketplaces, 21–22 payment systems with, 24, 26–27 privacy and, 192 Smith, Adam, 7, 206–7 social media, 169 Sönmez, Tayfun, 8, 35, 37–38, 43–44 on Boston school choice, 126–28 Sotomayor, Marilda, 146 South Korea, 171 speed of transactions, 81–99 communication and, 99–106 congestion and, 99–112 in financial markets, 82–89 in judicial clerkships, 90–98 price-based competition vs., 85–88 telegraph and the cotton market, 89–90 Spread Networks, 83 stable outcomes, 139–43, 157–58 Standage, Tom, 89 standardization, 17–20, 22 Standard & Poor’s 500 (SPY), 82–89 Starbucks, 18, 19 Starzl, Thomas, 34 stockbrokers, 48 strategic decisions, 10–11 allowing time for, 92–93, 154 congestion and, 99–106 for judicial clerkships, 69–70, 92–98 on marriage, 70–74 in school matching, 124–30, 153–55, 161, 163–65 speed of information in, 89–90 StubHub, 104 Sugar Bowl, 62 surrogate babies, 201–2 taxi drivers, 114 telegraph, 89–90 thick markets, 8–9 Amazon, 21 for college bowl games, 63–64 for commodities, 17 congestion in, 9–10, 99–112 credit card, 23–24 differentiation in, 18–20 early transactions and, 57–80 early transactions in, 57–80 in financial markets, 82–89 for kidney transplants, 49–51 New York City school system, 107–10 platform changes and, 26–27 for restaurants, 217–20 self-reinforcing, 21 signaling in, 179 transaction speed in, 81–99 ticket re-sales, 104 timing of transactions in college bowl games, 59–65 congestion and, 80, 99–112 in Internet marketplaces, 101–6 Internet markets and, 20–26 market thickness and, 8–9 too fast, 81–99 too soon, 57–80 trading cycles, 32–41 transactions early, 57–80 monetization of, 202–5 protected, 198 time to evaluate, 9–11 timing of (See timing of transactions) trading cycles and, 32–41 trust in Boston Public Schools system, 123–28 at eBay, 117–19 gastroenterology fellowships and, 76–78 in Internet marketplaces, 105 in New York City school system, 108–10, 112 regulation and, 222–23 reliability and, 116 reputation and, 115–16 Uber, 103–4, 116 UberX, 104 United Network for Organ Sharing (UNOS), 50 University of Cincinnati Medical Center, 39–41 University of Oklahoma Sooners, 59 University of Pittsburgh, 34, 45, 174–75 University of Toledo Medical Center, 29–30 UNOS, 50 unraveled/unraveling markets.


pages: 461 words: 128,421

The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street by Justin Fox

activist fund / activist shareholder / activist investor, Albert Einstein, Andrei Shleifer, asset allocation, asset-backed security, bank run, beat the dealer, Benoit Mandelbrot, Black-Scholes formula, Bretton Woods, Brownian motion, business cycle, buy and hold, capital asset pricing model, card file, Cass Sunstein, collateralized debt obligation, complexity theory, corporate governance, corporate raider, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, discovery of the americas, diversification, diversified portfolio, Edward Glaeser, Edward Thorp, endowment effect, Eugene Fama: efficient market hypothesis, experimental economics, financial innovation, Financial Instability Hypothesis, fixed income, floating exchange rates, George Akerlof, Henri Poincaré, Hyman Minsky, implied volatility, impulse control, index arbitrage, index card, index fund, information asymmetry, invisible hand, Isaac Newton, John Meriwether, John Nash: game theory, John von Neumann, joint-stock company, Joseph Schumpeter, Kenneth Arrow, libertarian paternalism, linear programming, Long Term Capital Management, Louis Bachelier, mandelbrot fractal, market bubble, market design, Myron Scholes, New Journalism, Nikolai Kondratiev, Paul Lévy, Paul Samuelson, pension reform, performance metric, Ponzi scheme, prediction markets, pushing on a string, quantitative trading / quantitative finance, Ralph Nader, RAND corporation, random walk, Richard Thaler, risk/return, road to serfdom, Robert Bork, Robert Shiller, Robert Shiller, rolodex, Ronald Reagan, shareholder value, Sharpe ratio, short selling, side project, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, statistical model, stocks for the long run, The Chicago School, The Myth of the Rational Market, The Predators' Ball, the scientific method, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Thomas L Friedman, Thorstein Veblen, Tobin tax, transaction costs, tulip mania, value at risk, Vanguard fund, Vilfredo Pareto, volatility smile, Yogi Berra

Both Friedman and Stigler later said that the crucial turning point in their thinking came when they read Friedrich Hayek’s The Road to Serfdom. Hayek had studied economics in Vienna in the 1920s and moved in 1931 to the London School of Economics—an originally socialist institution that had become a bastion of free market thought. During the war, LSE shifted its operations to Cambridge, where Hayek and John Maynard Keynes shared air raid warden shifts, became friends, and talked politics. Having experienced the socialist “Red Vienna” of the 1920s and watched the Nazi takeover of his homeland from afar, Hayek was appalled by the equanimity, even enthusiasm, with which Keynes and other English liberal intellectuals greeted the growth of government. Hayek wrote The Road to Serfdom with a British academic audience in mind, and in Britain it did not penetrate much beyond that audience.

As Columbia English professor and literary critic Lionel Trilling put it, liberalism had become “not only the dominant but even the sole intellectual tradition” in the United States.3 Yet here was an urbane intellectual arguing that the seemingly inexorable trend toward more government control of the economy was not just unnecessary but a mortal threat to freedom. It was a worldview-shifting revelation. For many others it was Ayn Rand’s 1943 bestseller The Fountainhead that had this effect, but economists understandably gravitated toward one of their own. Subsequent events did not play out quite as Hayek warned in his book. “It is a fair reading of The Road to Serfdom to say that forty years more of the march toward socialism would lead to major losses of the political and economic freedom of individuals,” Stigler wrote in 1988. “Yet in those forty years we have seen that continuous expansion of the state in Sweden and England, even in Canada and the United States, without consequences for personal freedom so dire as predicted.”4 Hayek soon put forward another argument that has held up far better—and was more directly applicable to the work of economists.

Resurrected Irving Fisher’s monetary theories, helped persuade economists to start with theories, not data, and became a leading proponent of free markets. Winner of the 1976 economics Nobel. William Peter Hamilton Editor of the Wall Street Journal in the early decades of the twentieth century. Popularized and expanded upon the chart-reading Dow theory of his predecessor Charles Dow. Friedrich Hayek Austrian economist whose anti-big-government book, Road to Serfdom (1944), inspired Milton Friedman and many other libertarians, and whose 1945 article, “The Use of Knowledge in Society,” helped inspire the efficient market hypothesis. Moved to the University of Chicago in 1950 but never played a big role in the Chicago school. Co-winner of the 1974 economics Nobel. Benjamin Graham Money manager who pioneered careful analysis of stocks and bonds and then, as a part-time professor at Columbia University and coauthor, with David L.


pages: 417 words: 97,577

The Myth of Capitalism: Monopolies and the Death of Competition by Jonathan Tepper

Affordable Care Act / Obamacare, air freight, Airbnb, airline deregulation, bank run, barriers to entry, Berlin Wall, Bernie Sanders, big-box store, Bob Noyce, business cycle, Capital in the Twenty-First Century by Thomas Piketty, citizen journalism, Clayton Christensen, collapse of Lehman Brothers, collective bargaining, computer age, corporate raider, creative destruction, Credit Default Swap, crony capitalism, diversification, don't be evil, Donald Trump, Double Irish / Dutch Sandwich, Edward Snowden, Elon Musk, en.wikipedia.org, eurozone crisis, Fall of the Berlin Wall, family office, financial innovation, full employment, German hyperinflation, gig economy, Gini coefficient, Goldman Sachs: Vampire Squid, Google bus, Google Chrome, Gordon Gekko, income inequality, index fund, Innovator's Dilemma, intangible asset, invisible hand, Jeff Bezos, John Nash: game theory, John von Neumann, Joseph Schumpeter, Kenneth Rogoff, late capitalism, London Interbank Offered Rate, low skilled workers, Mark Zuckerberg, Martin Wolf, means of production, merger arbitrage, Metcalfe's law, multi-sided market, mutually assured destruction, Nash equilibrium, Network effects, new economy, Northern Rock, offshore financial centre, passive investing, patent troll, Peter Thiel, plutocrats, Plutocrats, prediction markets, prisoner's dilemma, race to the bottom, rent-seeking, road to serfdom, Robert Bork, Ronald Reagan, Sam Peltzman, secular stagnation, shareholder value, Silicon Valley, Skype, Snapchat, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, too big to fail, undersea cable, Vanguard fund, very high income, wikimedia commons, William Shockley: the traitorous eight, zero-sum game

Kleeberg, German Cartels: Myths and Realities, http://www.econ.barnard.columbia.edu/~econhist/papers/Kleeberg _German_Cartels.pdf. 43. Wells, Antitrust. 44. A Year of Potsdam: German Economy Since Surrender, prepared by the Economics Division, Office of Military Government for Germany (US). United States War Department, 1946. 45. A. Pelle, The German Roots of the European Community's Cartel Regulation: From a Historical and Theoretical Perspective (LAP Lambert Academic Publishing, 2011). 46. F.A. Hayek, The Road to Serfdom (University of Chicago Press, 2007), pp. 93–94. 47. Simon Tilford, “Is EU Competition Policy an Obstacle to Innovation and Growth?,” http://www.cer.eu/sites/default/files/publications/attachments/pdf/2011/essay_competition_st_20nov08-1359.pdf. 48. https://www.economist.com/europe/2015/05/09/of-rules-and-order . 49. Ignacio Herrera Anchustegui, Competition Law Through an Ordoliberal Lens (March 1, 2015).

r=US&IR=T. 12. http://uk.businessinsider.com/pearson-salary-2015-2016-4. 13. http://www.bloomberg.com/news/articles/2016-02-02/shkreli-not-alone-in-drug-price-spikes-as-skin-gel-soars-1-860. 14. https://qz.com/514553/massive-unexpected-drug-price-increases-are-happening-all-the-time/. 15. https://www.scientificamerican.com/article/analysis-drugmakers-take-big-price-increases-on-popular-meds-in-u-s/. 16. http://www.modernhealthcare.com/article/20171228/NEWS/171229930. 17. http://www.bbc.co.uk/newsbeat/article/31664223/the-curse-of-blade-runners-adverts. 18. https://www.wsj.com/articles/science-affliction-are-companies-cursed-by-cameos-in-blade-runner-1506356096. 19. https://www.nationalreview.com/2013/03/hey-wheres-my-corporate-dystopia-kevin-d-williamson/. 20. https://www.nationalreview.com/2017/09/science-fiction-corporations-not-omnipotent-capitalism-ensures-competition/. 21. F.A. Hayek, The Road to Serfdom (University of Chicago Press, 2007). 22. https://www.wired.com/2012/03/march-19-1474-venice-enacts-a-patently-original-idea/. 23. http://altlawforum.org/publications/a-history-of-patent-law/. 24. https://www.mercatus.org/publication/number-patents-has-exploded-1982-and-one-court-blame. 25. https://promarket.org/intellectual-property-laws-wolves-sheeps-clothing/. 26. http://www.gao.gov/assets/660/657103.pdf. 27. https://priceonomics.com/how-mickey-mouse-evades-the-public-domain/. 28. https://hbr.org/2016/07/price-gouging-and-the-dangerous-new-breed-of-pharma-companies. 29.

Equality of Opportunity Project, http://www.equality-of-opportunity.org/. 21. http://www.pewsocialtrends.org/2015/12/09/the-american-middle-class-is-losing-ground/. 22. https://qz.com/711854/the-inequality-happening-now-in-san-francisco-will-impact-america-for-generations-to-come/. 23. http://www.mercurynews.com/2017/10/20/san-jose-san-francisco-oakland-job-losses-hammer-bay-area-employers-slash-thousands-of-jobs/. 24. https://www.theguardian.com/world/2014/jan/25/google-bus-protest-swells-to-revolt-san-francisco. 25. https://www.politico.com/magazine/story/2014/06/the-pitchforks-are-coming-for-us-plutocrats-108014. Conclusion: Economic and Political Freedom 1. Friedrich Hayek, The Road to Serfdom (New York: George Routledge & Sons, 1944), p. 204. 2. http://bcw-project.org/church-and-state/second-civil-war/agreement-of-the-people. 3. Geoffrey M. Hodgson, Wrong Turnings: How the Left Got Lost (University of Chicago Press, January 3, 2018). 4. Elizabeth Anderson's first Tanner 2015 lecture, “When the Market Was ‘Left.’” Published as Elizabeth Anderson, Private Government (Princeton, 2017). http://tannerlectures.utah.edu/Anderson%20manuscript.pdf. 5.


pages: 576 words: 105,655

Austerity: The History of a Dangerous Idea by Mark Blyth

"Robert Solow", accounting loophole / creative accounting, balance sheet recession, bank run, banking crisis, Black Swan, Bretton Woods, business cycle, buy and hold, capital controls, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, collateralized debt obligation, correlation does not imply causation, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency peg, debt deflation, deindustrialization, disintermediation, diversification, en.wikipedia.org, ending welfare as we know it, Eugene Fama: efficient market hypothesis, eurozone crisis, financial repression, fixed income, floating exchange rates, Fractional reserve banking, full employment, German hyperinflation, Gini coefficient, global reserve currency, Growth in a Time of Debt, Hyman Minsky, income inequality, information asymmetry, interest rate swap, invisible hand, Irish property bubble, Joseph Schumpeter, Kenneth Rogoff, liberal capitalism, liquidationism / Banker’s doctrine / the Treasury view, Long Term Capital Management, market bubble, market clearing, Martin Wolf, money market fund, moral hazard, mortgage debt, mortgage tax deduction, Occupy movement, offshore financial centre, paradox of thrift, Philip Mirowski, price stability, quantitative easing, rent-seeking, reserve currency, road to serfdom, savings glut, short selling, structural adjustment programs, The Great Moderation, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, Tobin tax, too big to fail, unorthodox policies, value at risk, Washington Consensus, zero-sum game

As Joan Robinson recalled, Hayek gave a talk at Cambridge shortly after he arrived at which R. F. Kahn asked, “If I went out tomorrow and bought a new overcoat, that would increase unemployment?” “Yes,” said Hayek, “but … it would take a very long mathematical argument to explain why.”41 By 1944, Hayek found himself similarly ignored, in semiretirement, writing on the dangers of socialism in his epic The Road to Serfdom. Hayek’s earlier Prices and Production, his Meisterwerk on business cycle theory, like Schumpeter’s 1939 Business Cycles, arrived dead at the presses. First ignored and then defeated in Europe, Austrian ideas survived in America, where their popularity has ebbed and flowed for nearly a century. Although battered and beaten-down by the Keynesian revolution after World War II, Austrian ideas never quite disappeared from the American scene.

Gillian Tett, “Beware Hidden Costs as Banks Eye ‘Grexit,’” Financial Times, May 24, 2012, http://www.ft.com/intl/cms/s/0/73c76b8a-a5b4–11e1-a3b4–00144feabdc0.html#axzz241THBegL. 73. Dani Rodrik, One Economics, Many Recipes (Princeton, NJ: Princeton University Press, 2007); David R. Cameron, “The Expansion of the Public Economy: A Comparative Analysis,” American Political Science Review 72, 4 (December 1978): 1243–1261. 74. Friedrich Hayek, The Road to Serfdom (Chicago: University of Chicago Press, 1994). 75. Paul De Grauwe, “Fighting the Wrong Enemy,” Vox, May 19’ 2010, http://new.voxeu.org/article/europe-s-private-versus-public-debt-problem-fighting-wrong-enemy. INTRODUCTION TO CHAPTERS FOUR, FIVE, AND SIX 1. John Maynard Keynes, The General Theory of Employment, Interest and Money (Orlando: Harcourt Brace 1964), 3. 2. And even here, it is contentious.

Tales of Two Small European Countries”, 169, 170, 171, 176, 209–210 Glitnir, 237 global asset bubbles, 233 fig, 7.1 Global South austerity in, 164 gold standard, 179 and a democracy, 197 and austerity, 180–205 and Germany, 196 and Japan, 197–199 United Kingdom and, 189–191, Goldman Sachs, 32, 48, 58 government intervention, 147–148, 148–152 Great Depression, 119, 128, 186 Great Moderation, 145, 149 Greece, 1, 2, 3, 4, 222 austerity in, 176–177 bailouts in, 71–73, 221 debt in, 6 Eurozone Current Account Imbalances, 78 fig. 3.1 Eurozone Ten-Year Government Bond Yields, 80 fig. 3.2 fiscal adjustment in, 173 government debt 2006–2012, 47 fig. 2.3 sovereign debt of, 62–64, 108 Greenspan, Alan, 60, 149, 150 Grossmann-Doerth, Hans, 135 Guajardo, Jamie, 214 Haldane, Andy, 37 Hamada, Koichi, 198 Hamaguchi, Prime Minister, 199 Harberler, Gottfried, 148 Harding, Warren G., 187 Hayek, Friedrich August, 90, 92, 120, 144 and the New Liberals, 118 and the Nobel Prize in economics, 145 model of credit crunches and collapses, 146–147 Prices and Production, 144 Road to Serfdom, The, 144 hedging. See risk management techniques Helferding, Rudolph, 195 Helleiner, Eric, 232 Hellwig, Christian, 160 Henderson, Hubert “Can Lloyd George Do It?” (with Keynes), 123, 124–125 Henry, James, 244 Hirschman, Albert, 39, 100, 108, 109 Holland, 4 Hoover, Herbert, 119, 187 Hubbard, Glenn, 243 Hume, David, 17, 100–101, 167 on government debt, 107, 108–109 “On Money”, 107 producing austerity, 114–115 relationship between and market and the state, 115–122, 123 Hungary and austerity, 221 hyperinflation in the 1920s, 56 Hutchinson, Martin, 207, 209 Iceland bailout in, 231 economic strategies in, 235–240 Stock Exchange, 237 inflation, 240, 241 ING, 83 Inoue, Junnosuke, 198, 200 Inside Job, (documentary), 21 interest rate swaps, 234 international capital-flow cycle, 11 International Monetary Fund, 3, 17, 45, 55 and austerity, 122, 206, 213, 221 and bailouts, 71–73, 221 and loans to Ireland, 235 and the Bretton Woods institutions, 162–163 and the consolidation in Denmark, 207 and the hidden “Treasury View”, 163–165 and the situation in Iceland, 238–239 and the success of the REBLL states, 216 and “the Washington consensus”, 102, 161–163, 164 Polak model, 163–165 World Economic Outlook, 212, 215 See also Kahn, Dominique Strauss Ireland, 3, 4, 5, 205, 222 austerity in, 17, 169–170, 179, 205, 206 expansion, 207–208, 209 bailout in, 221, 231 capital-flow cycle in, 11 economic strategies in, 235–240 Eurozone current account imbalances, 78 fig. 3.1 Eurozone Ten-Year Government Bond Yields, 80 fig. 3.2 fiscal adjustment in, 173 government debt 2006–2012, 46, 47, 53, 62, 65, 66 real estate in rise in prices, 27, 64–68 Italy, 1, 3, 4, 5, 222 Eurozone Current Account Imbalances, 78 fig. 3.1 Eurozone Ten-Year Government Bond Yields, 80 fig. 3.2 fiscal adjustment in, 173 government debt 2006–2012, 47, 53, 62 slow growth crisis, 68–71 slow-growth problem, 69 sovereign debt of, 108 Janeway, Bill, 125 Jayadev, Arjun, 212, 213 Japan and Keynesianism, 225 and the London Naval Treaty, 199, d austerity in, 17, 178–180, 197–200, 204 Bank of Japan, 197 Seiyukai party, 199 Showa Depression, 198 See also Hamaguchi, Prime Minister; Korekiyo, Takahashi Johnson, Simon, 11, 72 Kahn, Dominique Strauss, 222 Kahn, R.


Money and Government: The Past and Future of Economics by Robert Skidelsky

anti-globalists, Asian financial crisis, asset-backed security, bank run, banking crisis, banks create money, barriers to entry, Basel III, basic income, Ben Bernanke: helicopter money, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, collective bargaining, constrained optimization, Corn Laws, correlation does not imply causation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, David Graeber, David Ricardo: comparative advantage, debt deflation, Deng Xiaoping, Donald Trump, Eugene Fama: efficient market hypothesis, eurozone crisis, financial deregulation, financial innovation, Financial Instability Hypothesis, forward guidance, Fractional reserve banking, full employment, Gini coefficient, Growth in a Time of Debt, Hyman Minsky, income inequality, incomplete markets, inflation targeting, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, labour mobility, law of one price, liberal capitalism, light touch regulation, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, market clearing, market friction, Martin Wolf, means of production, Mexican peso crisis / tequila crisis, mobile money, Mont Pelerin Society, moral hazard, mortgage debt, new economy, Nick Leeson, North Sea oil, Northern Rock, offshore financial centre, oil shock, open economy, paradox of thrift, Pareto efficiency, Paul Samuelson, placebo effect, price stability, profit maximization, quantitative easing, random walk, regulatory arbitrage, rent-seeking, reserve currency, Richard Thaler, rising living standards, risk/return, road to serfdom, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, shareholder value, short selling, Simon Kuznets, structural adjustment programs, The Chicago School, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, trade liberalization, value at risk, Washington Consensus, yield curve, zero-sum game

Liberalism, or social democracy, unravelled with stagflation and ungovernability in the 1970s. This broadly fits Schlesinger’s notion of the ‘corruption of power’. Keynesian/social democratic policymakers succumbed to hubris, an intellectual corruption that convinced them they possessed the knowledge and the tools to manage and control the economy and society from the top. This was the malady against which Hayek had inveighed in his classic The Road to Serfdom (1944). The attempt in the 1970s to control inflation by wage and price controls led directly to a ‘crisis of governability’, as trade unions, particularly in Britain, refused to accept them. Large state subsidies to producer groups, both public and private, fed the typical corruptions of behaviour identified by the New Right: rent-seeking, moral hazard and free-riding. Palpable evidence of government failure obliterated earlier memories of market failure.

The neo-liberal solution to the ills of laissez-faire was not to insert government, but to embed the market economy in a constitutional, rule-bound order (hence the German Ordoliberalismus) which guaranteed free competition and denied the state discretionary power to modify market processes. A social safety net should be provided ‘outside the market’ for victims of economic or personal misfortune. Keynes’s relationship to this defence of classical economics comes out very clearly in his response to Hayek’s Road to Serfdom (1944). Hayek’s argument, in a nutshell, was that ‘once the free working of the market is impeded beyond a certain degree, the planner will be forced to extend his controls until they become all-comprehensive’. Hayek did not attack Keynes by name. But he certainly had him in his sights as the intellectual leader of those who ‘believe that real success [in combating economic fluctuations] can be expected only from public works undertaken on a very large scale’.

It then becomes a matter of judgement as to which set of economic and social practices is most likely to preserve the moral values that Hayek and Keynes shared. The debate, as we can see, was about a fundamental question: was Keynesianism (and, more broadly, social democracy) an antidote to totalitarianism or the thin end of the wedge? Here one can say that Keynes won the major argument, but lost the minor one. Keynesianism as a policy nowhere led to serfdom, but it did lead to inflation. I V. Mon e ta r ism The Road to Serfdom was the inspiration for the Mont Pelerin Society founded by Hayek in 1947. An early member of the society was Milton Friedman. Friedman was not in the business of synthesis, but of counter-revolution. He attacked Keynes’s doctrines in order to demonstrate the futility of Keynesian policies. He recalled that: 176 t h e t h e ory a n d p r ac t ic e of mon e ta r i sm During my whole career, I have considered myself somewhat of a schizophrenic . . .


pages: 232 words: 77,956

Private Island: Why Britain Now Belongs to Someone Else by James Meek

Affordable Care Act / Obamacare, Berlin Wall, business continuity plan, call centre, clean water, Deng Xiaoping, Etonian, HESCO bastion, housing crisis, illegal immigration, Martin Wolf, medical bankruptcy, Mikhail Gorbachev, post-industrial society, pre–internet, price mechanism, Right to Buy, risk tolerance, road to serfdom, Ronald Reagan, Rubik’s Cube, Skype, sovereign wealth fund, Washington Consensus, working poor

Her great political inspiration, apart from her father, was the Austrian economist Friedrich Hayek’s 1944 book, The Road to Serfdom, written in Cambridge during the war. Hayek was regarded as an able economist; he eventually won a Nobel Prize for it. But The Road to Serfdom isn’t an economics book. It’s a book about society, the recent past and human nature that bears the same relation to sociology, history and psychology as Atlas Shrugged bears to literature. It is devoted to the idea that Winston Churchill later nodded to, catastrophically for him, in the 1945 election campaign, when he said Labour would have to fall back on ‘some form of Gestapo’ to implement its welfare and nationalisation programme. Churchill was thrown out of office, and Labour won a huge majority. The Road to Serfdom claims that socialism inevitably leads to communism, and that communism and Nazi-style fascism are one and the same.


pages: 290 words: 76,216

What's Wrong with Economics? by Robert Skidelsky

"Robert Solow", additive manufacturing, agricultural Revolution, Black Swan, Bretton Woods, business cycle, Cass Sunstein, central bank independence, cognitive bias, conceptual framework, Corn Laws, corporate social responsibility, correlation does not imply causation, creative destruction, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, disruptive innovation, Donald Trump, full employment, George Akerlof, George Santayana, global supply chain, global village, Gunnar Myrdal, happiness index / gross national happiness, hindsight bias, Hyman Minsky, income inequality, index fund, inflation targeting, information asymmetry, Internet Archive, invisible hand, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, knowledge economy, labour market flexibility, loss aversion, Mark Zuckerberg, market clearing, market friction, market fundamentalism, Martin Wolf, means of production, moral hazard, paradox of thrift, Pareto efficiency, Paul Samuelson, Philip Mirowski, precariat, price anchoring, principal–agent problem, rent-seeking, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, shareholder value, Silicon Valley, Simon Kuznets, survivorship bias, technoutopianism, The Chicago School, The Market for Lemons, The Nature of the Firm, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Thorstein Veblen, transaction costs, transfer pricing, Vilfredo Pareto, Washington Consensus, Wolfgang Streeck, zero-sum game

The crisis of social democracy unfolded with stagflation and ungovernability in the 1970s. It broadly fits Schlesinger’s notion of the ‘corruption of power’. The Keynesian/social democratic policy-makers succumbed to hubris, an intellectual corruption which convinced them that they possessed the knowledge and the tools to manage and control the economy and society from the top. This was the malady against which Hayek inveighed in his classic The Road to Serfdom (1944). The attempt in the 1970s to control inflation by wage and price controls led directly to a ‘crisis of governability’, as trade unions, particularly in Britain, refused to accept them. Large state subsidies to producer groups, both public and private, fed the typical corruptions of behaviour identified by the new right: rent-seeking, moral hazard, free-riding. Palpable evidence of government failure obliterated memories of market failure.

Epochs of Economic Theory, Oxford: Basil Blackwell. Denison, Edward F. (1962). The Sources of Economic Growth in the United States and the Alternatives Before Us, New York: Committee for Economic Development. Finlay, Moses (1973). The Ancient Economy, Berkeley: University of California Press. Fogel, Robert W. and Engerman, Stanley L. (1995 [1974]). Time on the Cross, New York: W.W. Norton. Hayek, Friedrich (1944). The Road to Serfdom, Chicago: University of Chicago Press. Kulikowski, Michael (2014). ‘The Glorious Free Market’, London Review of Books, Vol. 38 (12): 37–8. Landes, David (1998). The Wealth and Poverty of Nations: Why Some Are So Rich and Others So Poor, New York: W.W. Norton. Marshall, Alfred (1890). Principles of Economics, London: Macmillan. Parker, William Nelson (1986). Economic History and the Modern Economist, Oxford: Basil Blackwell.

The Economist as Preacher, and Other Essays, Chicago: University of Chicago Press. Whately, Richard (1832). ‘Lecture IX’ in Introductory Lectures on Political Economy, London: B. Fellowes. Chapter 13 Davidson, Paul (1994). Post-Keynesian Macroeconomic Theory: A Foundation for Successful Economic Policies for the Twenty-first Century, Aldershot: Edward Elgar. Hayek, Friedrich (1944). The Road to Serfdom, London: Routledge. Hollis, Martin (1987). The Cunning of Reason, Cambridge: Cambridge University Press. Keynes, John Maynard (1921) [Collected Writings of, Vol. 8, 1973]. A Treatise on Probability, London: Macmillan. (available at: http://www.gutenberg.org/files/32625/32625-pdf.pdf) Keynes, John Maynard (1964 [1936]). The General Theory of Employment, Interest and Money, San Diego: Harcourt.


pages: 840 words: 202,245

Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present by Jeff Madrick

accounting loophole / creative accounting, Asian financial crisis, bank run, Bretton Woods, business cycle, capital controls, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, desegregation, disintermediation, diversified portfolio, Donald Trump, financial deregulation, fixed income, floating exchange rates, Frederick Winslow Taylor, full employment, George Akerlof, Hyman Minsky, income inequality, index fund, inflation targeting, inventory management, invisible hand, John Meriwether, Kitchen Debate, laissez-faire capitalism, locking in a profit, Long Term Capital Management, market bubble, minimum wage unemployment, MITM: man-in-the-middle, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, Myron Scholes, new economy, North Sea oil, Northern Rock, oil shock, Paul Samuelson, Philip Mirowski, price stability, quantitative easing, Ralph Nader, rent control, road to serfdom, Robert Bork, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, Ronald Reagan: Tear down this wall, shareholder value, short selling, Silicon Valley, Simon Kuznets, technology bubble, Telecommunications Act of 1996, The Chicago School, The Great Moderation, too big to fail, union organizing, V2 rocket, value at risk, Vanguard fund, War on Poverty, Washington Consensus, Y2K, Yom Kippur War

Aaron found his way to London where Simons had made an introduction for him to his good friend Friedrich von Hayek, the Austrian economist, who was teaching at the London School of Economics. Director, like many others, became a devotee. When Director returned to Chicago, he convinced the University of Chicago Press to publish the American edition of Hayek’s new British best seller, The Road to Serfdom, for which Director wrote a favorable review for a journal. Hayek, a serious academic, turned The Road to Serfdom into a fear-inspiring polemic. Its central message was that a growing welfare state in Europe would inevitably lead to totalitarianism, the rise of Nazi Germany fresh in the public’s mind. The welfare state would also weaken the nation’s economy by undermining markets, which were the only means by which to send signals to producers about the quantities and quality of goods and services.

They named the group after the small Swiss town in which they convened, Mont Pelerin, near Vevey, Switzerland. The formation of the Mont Pelerin Society was financed by Europeans and a highly conservative tax-exempt American foundation, the William Volker Charitable Fund of Kansas City, founded by prosperous right-wing local businessmen. The fund also helped finance the Foundation for Economic Education, which published the Friedman-Sigler paper on rent control. After the remarkable success of The Road to Serfdom, the Volker Fund attempted to bring Hayek from London to an American university. The fund’s president, Harold Luhnow, was determined to underwrite an Americanized version of the Hayek book—though there was already a condensed version of it published by Reader’s Digest. But finding a suitable university position for Hayek turned out to be difficult, and he was not interested in rewriting his book for an American audience.

If America did not return to the right path, “a thousand years of darkness” lay ahead, he said, with biblical overtones. In a speech first delivered in 1952, he said, “I, in my own mind, have thought of America as a place in the divine scheme of things that was set aside as a promised land.” Martin Anderson, a principal economic adviser during his presidency, wrote that he gave Reagan Hayek’s Road to Serfdom and Friedman’s Capitalism and Freedom, and that he read these, among other books. Some claimed they saw copies of the Hayek and Friedman books dog-eared in his library. But Lou Cannon wrote that Anderson was exaggerating when he implied that Reagan read broadly. Still, he clearly took ideas from Hayek, notably the danger to individual liberty of growing government, and the inevitability of Nazi-style dictatorship under a welfare state.


pages: 138 words: 43,748

Conscience of a Conservative: A Rejection of Destructive Politics and a Return to Principle by Jeff Flake

4chan, Affordable Care Act / Obamacare, battle of ideas, Berlin Wall, cognitive dissonance, crony capitalism, David Brooks, Donald Trump, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global supply chain, immigration reform, impulse control, invisible hand, Mark Zuckerberg, obamacare, Potemkin village, race to the bottom, road to serfdom, Ronald Reagan, Silicon Valley, uranium enrichment, zero-sum game

But free people, freely making decisions among themselves, with the government involved as little as possible—that is the essential conservative position, the fixed principle from which all negotiation starts, and against which all end results are measured. As influential as Friedman remains, perhaps the more influential economic thinker for my generation of conservatives is the Nobel Prize–winning economist Friedrich Hayek, the only major recent member of the Austrian School actually born in Austria. Hayek’s writings on government interference and government coercion—chiefly his epic The Road To Serfdom—became seminal texts for thinking conservatives from Margaret Thatcher to Paul Ryan (Speaker Ryan has said that he gives the book to new staff members to “bring them up to speed”) and everybody in between. Such devotion has cemented Hayek’s place in the conservative firmament. It was Hayek who went head to head with John Maynard Keynes, the collectivists, the socialists, and economic interventionists of all stripes during the seismic intellectual battles of the twentieth century.

Vintage Books/The Library of America, 1992. Flake, Osmer D. William Jordan Flake: Pioneer, Colonizer. Brigham Young University Press, 2000. Goldwater, Barry. The Conscience of a Conservative. Victor Publishing Company, 1960. Hayek, F. A. The Constitution of Liberty. The University of Chicago Press, 2011. ———. The Fatal Conceit: The Errors of Socialism. The University of Chicago Press, 1991. ———. The Road to Serfdom. The University of Chicago Press, 2007. Hutner, Gordon. Selected Speeches and Writings of Theodore Roosevelt. Vintage Books, 2014. Judis, John B. The Populist Explosion. Columbia Global Reports, 2016. ———. William F. Buckley: Patron Saint of the Conservatives. Simon & Schuster, 2001. Klososky, Scott, editor. The Haldeman Diaries: Inside the Nixon White House. G.P. Putnam’s Sons, 1994. Lien, Tracey.


pages: 301 words: 85,263

New Dark Age: Technology and the End of the Future by James Bridle

AI winter, Airbnb, Alfred Russel Wallace, Automated Insights, autonomous vehicles, back-to-the-land, Benoit Mandelbrot, Bernie Sanders, bitcoin, British Empire, Brownian motion, Buckminster Fuller, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, cognitive bias, cognitive dissonance, combinatorial explosion, computer vision, congestion charging, cryptocurrency, data is the new oil, Donald Trump, Douglas Engelbart, Douglas Engelbart, Douglas Hofstadter, drone strike, Edward Snowden, fear of failure, Flash crash, Google Earth, Haber-Bosch Process, hive mind, income inequality, informal economy, Internet of things, Isaac Newton, John von Neumann, Julian Assange, Kickstarter, late capitalism, lone genius, mandelbrot fractal, meta analysis, meta-analysis, Minecraft, mutually assured destruction, natural language processing, Network effects, oil shock, p-value, pattern recognition, peak oil, recommendation engine, road to serfdom, Robert Mercer, Ronald Reagan, self-driving car, Silicon Valley, Silicon Valley ideology, Skype, social graph, sorting algorithm, South China Sea, speech recognition, Spread Networks laid a new fibre optics cable between New York and Chicago, stem cell, Stuxnet, technoutopianism, the built environment, the scientific method, Uber for X, undersea cable, University of East Anglia, uranium enrichment, Vannevar Bush, WikiLeaks

It’s not hard to see a parallel between the neoliberal ordering of the world – where an impartial and dispassionate market directs the action independent of human biases – and Hayek’s commitment to a connectionist model of the brain. As later commentators have noted, in Hayek’s model of the mind, ‘knowledge is dispersed and distributed in the cerebral cortex much as it is in the marketplace among individuals’.3 Hayek’s argument for connectionism is an individualist, neoliberal one, and corresponds directly with his famous assertion in The Road to Serfdom (1944) that all forms of collectivism lead inexorably to totalitarianism. Today, the connectionist model of artificial intelligence reigns supreme again, and its primary proponents are those who, like Hayek, believe that there is a natural order to the world that emerges spontaneously when human bias is absent in our knowledge production. Once again, we see the same claims being made about neural networks as were made by their cheerleaders in the 1950s – but this time, their claims are being put to work in the world more widely.

., 72–3 Galton, Francis, 140 game developers, 130 Gates’s law, 83 GCHQ (Government Communications Headquarters), 167, 174, 176–9, 189 genocide, 243 ghost cars (Uber), 118–9 G-INFO, 190 global mass surveillance, 179–80 Global Positioning System (GPS), 36–7, 42–3 Global Seed Vault, 54 global warming, 73, 193, 214 Glomar response, 165, 186 Godard, Jean-Luc, 143 Google, 84, 139, 230, 242 Google Alerts, 190 Google Brain project, 139, 148, 149, 156 Google Earth, 35–6 Google Home, 128–9 Google Maps, 177 Google Translate, 147–8, 156 Government Communications Headquarters (GCHQ), 167, 174, 176–9, 189 GPS (Global Positioning System), 36–7, 42–3 Graves, Robert, 159 Gravity’s Rainbow (Pynchon), 128 gray zone, 212–4 Great Nōbi Earthquake, 145 Greenland, 57–8 Green Revolution, 53 Greyball programme, 119, 120 guardianship, 251–2 H Hankins, Thomas, 102 Haraway, Donna, 12 Harvard Mark I machine, 30 Hayek, Friedrich, 156–7 The Road to Serfdom, 139 The Sensory Order: An Inquiry into the Foundations of Theoretical Psychology, 138–9 HealthyFoodHouse.com (website), 231–2 Heller, Joseph Catch-22, 187–8 Hermes, 134 Hersh, Seymour, 164 Hewlett-Packard, 143 hidden technological processes, 120 high-frequency trading, 14, 106–7, 108, 122, 124 high-throughput screening (HTS), 95–6 Hillingdon Hospital, 110–1, 111 Hippo programme, 32 Hofstadter, Douglas, 205–6 Hola Massacre, 170 homogenitus, 195, 196 Horn, Roni, 50, 201 How-Old.net facial recognition programme, 141 ‘How the World Wide Web Just Happened’ lecture, 78 HTS (high-throughput screening), 95–6 Hughes, Howard, 163 Hughes Glomar Explorer, 163–5 human genome project, 93 Human Interference Task Force, 251 human violence, 202 Humby, Clive, 245, 246 Hwang Woo-suk, 86–8 hyperobjects, 73, 75, 76, 194 hypertext, 79 I IBM Selective Sequence Electronic Calculator (SSEC), 30, 30–2, 31, 146 ICAO (International Civil Aviation Organisation), 68 ICARDA (International Center for Agricultural Research in the Dry Areas), 53–4, 55 ICT, 60–2 image recognition, 139–40 Infinite Fun Space, 149–50, 156 information networks, 62 information superhighway, 10 Infowars (Jones), 207 In Place of Fear (Bevan), 110 Institute of the Aeronautical Sciences, 26 integrated circuits, 79, 80 Intel, 80 International Center for Agricultural Research in the Dry Areas (ICARDA), 53–4, 55 International Civil Aviation Organisation (ICAO), 68 International Cloud Atlas, 195 Internet Research Agency, 235, 237 Inuit Knowledge and Climate Change, 199 The Invisibles (Morrison), 196–7 Isaksen, Ketil, 54 ISIL, 212–3 J Jameson, Fredric, 205 Jelinek, Frederick, 146–7 Jones, Alex Infowars, 207 Joshi, Manoj, 68–9 journalism, automated, 123–4 just-in-time manufacturing, 117 K K-129, 162–3 Karma Police operation, 175 Kasparov, Garry, 148–9, 157–8 Keeling Curve, 74, 74 Kennedy, John F., 169–70 Kinder Eggs, 215–6 Kiva robots, 114 Klein, Mark, 176–7 Kodak, 143 Krakatoa, eruption of, 202 Kunuk, Zacharias, 199, 200 Kuznets curve, 113 L Large Hadron Collider, 93 Lavoisier, Antoine, 78 Elements of Chemistry, 208–9 Lawson, Robert, 175–6 LD4, 104, 105 Leave Campaign, 194 Leibniz, Gottfried Wilhelm, 78 Levy, David, 158, 159 Lewis, Michael Flash Boys, 111–2 LifeSphere, 125 literacy in systems, 3–4 Lockheed Ocean Systems, 163 Logan, Walt (pseudonym), 165 Lombroso, Cesare, 140 London Stock Exchange, 110–1 Lovecraft, H.P., 11, 249 ‘low-hanging fruit,’ 93–4 M Macedonia, 233–4 machine learning algorithms, 222 machine thought, 146 machine translation, 147 magnetism, 77 Malaysian Airlines, 66 manganese noodles, 163–4 Manhattan Project, 24–30, 248 Mara, Jane Muthoni, 170 Mark I Perceptron, 136–8, 137 Maslow’s hierarchy of needs, 128–9 Matthews, James Tilly, 208–10, 209 Mauro, Ian, 199 McCarthy, Joe, 205 McGovern, Thomas, 57–8 McKay Brothers, 107, 110 memex, 24 Mercer, Robert, 236 Merkel, Angela, 174 metalanguage, 3, 5 middens, 56 migrated archive, 170–1 Minds, 150 miniaturisation principle, 81 Mirai, 129 mobile phones, 126 The Modern Prometheus (Shelley), 201 monoculture, 55–6 Moore, Gordon, 80, 80, 83 Moore’s law, 80–3, 92–4 Mordvintsev, Alexander, 154 Morgellons, 211, 214 Morrison, Grant The Invisibles, 196–7 Morton, Timothy, 73, 194 Mount Tambora, eruption of, 201 Moynihan, Daniel Patrick, 169 Munch, Edvard The Scream, 202 Mutua, Ndiku, 170 N NarusInsight, 177 NASA Ames Advanced Concepts Flight Simulator, 42 Natanz Nuclear Facility, 129 National Centre for Atmospheric Science, 68–9 National Geospatial-Intelligence Agency, 243 National Health Service (NHS), 110 National Mining Association, 64 National Reconnaissance Office, 168, 243 National Security Agency (NSA), 167, 174, 177–8, 183, 242–3, 249–50 National Security Strategy, 59 natural gas, 48 neoliberalism, 138–9 network, 5, 9 networks, 249 Newton, Isaac, 78 NewYorkTimesPolitics.com, 221 New York World’s Fair, 30–1 NHS (National Health Service), 110 9/11 terrorist attacks, 203–4, 206 ‘Nine Eyes,’ 174 1984 (Orwell), 242 NORAD (North American Air Defense Command), 33 North American Air Defense Command (NORAD), 33 ‘The Nor’ project, 104 Not Aviation, 190–1 NSA (National Security Agency), 167, 174, 177–8, 183, 242–3, 249–50 nuclear fusion, 97–8, 100 nuclear warfare, 28 Numerical Prediction (Richardson), 45 Nyingi, Wambugu Wa, 170 Nzili, Paulo Muoka, 170 O Obama, Barack, 180, 206, 231 Official Secrets Act, 189 Omori, Fusakichi, 145 Omori’s Law, 145 Operation Castle, 97 Operation Legacy, 171–2 Optic Nerve programme, 174 Optometrist Algorithm, 99–101, 160 O’Reilly, James, 185–6 Orwell, George 1984, 242 ‘Outline of Weather Proposal’ (Zworykin), 25–6 P Paglen, Trevor, 144 ‘paranoid style,’ 205–6 Patriot Act, 178 Penrose, Roger, 20 Perceptron, 136–8, 137 permafrost, 47–9, 56–7 p-hacking, 89–91 Phillippi, Harriet Ann, 165 photophone, 19–20 Pichai, Sundar, 139 Piketty, Thomas Capital in the Twenty-First Century, 112 Pincher, Chapman, 175–6 Pitt, William, 208 Plague-Cloud, 195, 202 Poitras, Laura, 175 Polaroid, 143 ‘predictive policing’ systems, 144–6 PredPol software, 144, 146 Priestley, Joseph, 78, 208, 209 prion diseases, 50, 50–1 PRISM operation, 173 product spam, 125–6 Project Echelon, 190 Prometheus, 132–4, 198 psychogeography, 103 public key cryptography, 167–8 pure language, 156 Putin, Vladimir, 235 Pynchon, Thomas Gravity’s Rainbow, 128 Q Qajaa, 56, 57 quality control failure of, 92–3 in science, 91 Quidsi, 113–4 R racial profiling, 143–4 racism, 143–4 ‘radiation cats,’ 251 raw computing, 82–3 Reagan, Ronald, 36–7 Reed, Harry, 29 refractive index of the atmosphere, 62 Regin malware, 175 replicability, 88–9 Reproducibility Project, 89 resistance, modes of, 120 Reuter, Paul, 107 Review Group on Intelligence and Communications Technologies, 181 Richardson, Lewis Fry, 20–1, 29, 68 Numerical Prediction, 45 Weather Prediction by Numerical Process, 21–3 Richardson number, 68 The Road to Serfdom (Hayek), 139 Robinson, Kim Stanley Aurora, 128 robots, workers vs., 116 ‘Rogeting,’ 88 Romney, Mitt, 206–7 Rosenblatt, Frank, 137 Roy, Arundhati, 250 Royal Aircraft Establishment, 188–9 Ruskin, John, 17–20, 195, 202 Rwanda, 243, 244, 245 S Sabetta, 48 SABRE (Semi-Automated Business Research Environment), 35, 38 SAGE (Semi-Automatic Ground Environment), 33, 34, 35 Samsung, 127 Scheele, Carl Wilhelm, 78 Schmidt, Eric, 241–5 The Scream (Munch), 202 Sedol, Lee, 149, 157–8 seed banks, 52–6 Seed Vault, 55 seismic sensors, 48 self-excitation, 145 ‘semantic analyser,’ 177 Semi-Automated Business Research Environment (SABRE), 35, 38 Semi-Automatic Ground Environment (SAGE), 33, 34, 35 semiconductors, 82 The Sensory Order: An Inquiry into the Foundations of Theoretical Psychology (Hayek), 138–9 Shelley, Mary Frankenstein, 201 The Modern Prometheus, 201 SIGINT Seniors Europe, 174 simulation, conflating approximation with, 34–5 Singapore Exchange, 122–3 smart products, 127–8, 131 Smith, Robert Elliott, 152 smoking gun, 183–4, 186 Snowden, Edward, 173–5, 178 software about, 82–3 AlphaGo, 149, 156–8 Assistant, 152 AutoAwesome, 152 DeepFace, 140 Greyball programme, 119, 120 Hippo programme, 32 How-Old.net facial recognition programme, 141 Optic Nerve programme, 174 PredPol, 144, 146 Translate, 146 Solnit, Rebecca, 11–2 solutionism, 4 space telescopes, 168–9 speed of light, 107 Spread Networks, 107 SSEC (IBM Selective Sequence Electronic Calculator), 30, 30–2, 31, 146 Stapel, Diederik, 87–8 Stapledon, Olaf, 20 steam engines, 77 Stellar Wind, 176 Stewart, Elizabeth ‘Betsy,’ 30–1, 31 Steyerl, Hito, 126 stock exchanges, 108 ‘The Storm-Cloud of the Nineteenth Century’ lecture series, 17–9 Stratus homogenitus, 195–6 studios, 130 Stuxnet, 129–30 surveillance about, 243–4 complicity in, 185 computational excesses of, 180–1 devices for, 104 Svalbard archipelago, 51–2, 54 Svalbard Global Seed Vault, 52–3 Svalbard Treaty (1920), 52 Swiss National Bank, 123 Syed, Omar, 158–9 systemic literacy, 5–6 T Taimyr Peninsula, 47–8 Targeted Individuals, 210–1 The Task of the Translator (Benjamin), 147, 155–6 TCP (Transmission Control Protocol), 79 technology acceleration of, 2 complex, 2–3 opacity of, 119 Teletubbies, 217 television, children’s, 216–7 Tesco Clubcard, 245 thalidomide, 95 Thatcher, Margaret, 177 theory of evolution, 78 thermal power plants, 196 Three Guineas (Woolf), 12 Three Laws of Robotics (Asimov), 157 Tillmans, Wolfgang, 71 tools, 13–4 To Photograph the Details of a Dark Horse in Low Light exhibition, 143 totalitarianism, collectivism vs., 139 Toy Freaks, 225–6 transistors, 79, 80 Translate software, 146 translation algorithms, 84 Transmission Control Protocol (TCP), 79 Tri Alpha Energy, 98–101 Trinity test, 25 trolling, 231 Trump, Donald, 169–70, 194–5, 206, 207, 236 trust, science and, 91 trusted source, 220 Tuktoyaktuk Peninsula, 49 turbulence, 65–9 tyranny of techne, 132 U Uber, 117–9, 127 UberEats app, 120–1 unboxing videos, 216, 219 United Airlines, 66–7 Uniting and Strengthening America by Fulfilling Rights and Ending Eavesdropping, Dragnet-collection and Online Monitoring Act (USA FREEDOM Act), 178 USA FREEDOM Act (2015), 178 US Drug Efficacy Amendment (1962), 95 V van Helden, Albert, 102 Veles, objectification of, 235 Verizon, 173 VHF omnidirectional radio range (VOR) installations, 104 Vigilant Telecom, 110–1 Volkswagen, 119–20 von Neumann, John about, 25 ‘Can We Survive Technology?

., 11, 249 ‘low-hanging fruit,’ 93–4 M Macedonia, 233–4 machine learning algorithms, 222 machine thought, 146 machine translation, 147 magnetism, 77 Malaysian Airlines, 66 manganese noodles, 163–4 Manhattan Project, 24–30, 248 Mara, Jane Muthoni, 170 Mark I Perceptron, 136–8, 137 Maslow’s hierarchy of needs, 128–9 Matthews, James Tilly, 208–10, 209 Mauro, Ian, 199 McCarthy, Joe, 205 McGovern, Thomas, 57–8 McKay Brothers, 107, 110 memex, 24 Mercer, Robert, 236 Merkel, Angela, 174 metalanguage, 3, 5 middens, 56 migrated archive, 170–1 Minds, 150 miniaturisation principle, 81 Mirai, 129 mobile phones, 126 The Modern Prometheus (Shelley), 201 monoculture, 55–6 Moore, Gordon, 80, 80, 83 Moore’s law, 80–3, 92–4 Mordvintsev, Alexander, 154 Morgellons, 211, 214 Morrison, Grant The Invisibles, 196–7 Morton, Timothy, 73, 194 Mount Tambora, eruption of, 201 Moynihan, Daniel Patrick, 169 Munch, Edvard The Scream, 202 Mutua, Ndiku, 170 N NarusInsight, 177 NASA Ames Advanced Concepts Flight Simulator, 42 Natanz Nuclear Facility, 129 National Centre for Atmospheric Science, 68–9 National Geospatial-Intelligence Agency, 243 National Health Service (NHS), 110 National Mining Association, 64 National Reconnaissance Office, 168, 243 National Security Agency (NSA), 167, 174, 177–8, 183, 242–3, 249–50 National Security Strategy, 59 natural gas, 48 neoliberalism, 138–9 network, 5, 9 networks, 249 Newton, Isaac, 78 NewYorkTimesPolitics.com, 221 New York World’s Fair, 30–1 NHS (National Health Service), 110 9/11 terrorist attacks, 203–4, 206 ‘Nine Eyes,’ 174 1984 (Orwell), 242 NORAD (North American Air Defense Command), 33 North American Air Defense Command (NORAD), 33 ‘The Nor’ project, 104 Not Aviation, 190–1 NSA (National Security Agency), 167, 174, 177–8, 183, 242–3, 249–50 nuclear fusion, 97–8, 100 nuclear warfare, 28 Numerical Prediction (Richardson), 45 Nyingi, Wambugu Wa, 170 Nzili, Paulo Muoka, 170 O Obama, Barack, 180, 206, 231 Official Secrets Act, 189 Omori, Fusakichi, 145 Omori’s Law, 145 Operation Castle, 97 Operation Legacy, 171–2 Optic Nerve programme, 174 Optometrist Algorithm, 99–101, 160 O’Reilly, James, 185–6 Orwell, George 1984, 242 ‘Outline of Weather Proposal’ (Zworykin), 25–6 P Paglen, Trevor, 144 ‘paranoid style,’ 205–6 Patriot Act, 178 Penrose, Roger, 20 Perceptron, 136–8, 137 permafrost, 47–9, 56–7 p-hacking, 89–91 Phillippi, Harriet Ann, 165 photophone, 19–20 Pichai, Sundar, 139 Piketty, Thomas Capital in the Twenty-First Century, 112 Pincher, Chapman, 175–6 Pitt, William, 208 Plague-Cloud, 195, 202 Poitras, Laura, 175 Polaroid, 143 ‘predictive policing’ systems, 144–6 PredPol software, 144, 146 Priestley, Joseph, 78, 208, 209 prion diseases, 50, 50–1 PRISM operation, 173 product spam, 125–6 Project Echelon, 190 Prometheus, 132–4, 198 psychogeography, 103 public key cryptography, 167–8 pure language, 156 Putin, Vladimir, 235 Pynchon, Thomas Gravity’s Rainbow, 128 Q Qajaa, 56, 57 quality control failure of, 92–3 in science, 91 Quidsi, 113–4 R racial profiling, 143–4 racism, 143–4 ‘radiation cats,’ 251 raw computing, 82–3 Reagan, Ronald, 36–7 Reed, Harry, 29 refractive index of the atmosphere, 62 Regin malware, 175 replicability, 88–9 Reproducibility Project, 89 resistance, modes of, 120 Reuter, Paul, 107 Review Group on Intelligence and Communications Technologies, 181 Richardson, Lewis Fry, 20–1, 29, 68 Numerical Prediction, 45 Weather Prediction by Numerical Process, 21–3 Richardson number, 68 The Road to Serfdom (Hayek), 139 Robinson, Kim Stanley Aurora, 128 robots, workers vs., 116 ‘Rogeting,’ 88 Romney, Mitt, 206–7 Rosenblatt, Frank, 137 Roy, Arundhati, 250 Royal Aircraft Establishment, 188–9 Ruskin, John, 17–20, 195, 202 Rwanda, 243, 244, 245 S Sabetta, 48 SABRE (Semi-Automated Business Research Environment), 35, 38 SAGE (Semi-Automatic Ground Environment), 33, 34, 35 Samsung, 127 Scheele, Carl Wilhelm, 78 Schmidt, Eric, 241–5 The Scream (Munch), 202 Sedol, Lee, 149, 157–8 seed banks, 52–6 Seed Vault, 55 seismic sensors, 48 self-excitation, 145 ‘semantic analyser,’ 177 Semi-Automated Business Research Environment (SABRE), 35, 38 Semi-Automatic Ground Environment (SAGE), 33, 34, 35 semiconductors, 82 The Sensory Order: An Inquiry into the Foundations of Theoretical Psychology (Hayek), 138–9 Shelley, Mary Frankenstein, 201 The Modern Prometheus, 201 SIGINT Seniors Europe, 174 simulation, conflating approximation with, 34–5 Singapore Exchange, 122–3 smart products, 127–8, 131 Smith, Robert Elliott, 152 smoking gun, 183–4, 186 Snowden, Edward, 173–5, 178 software about, 82–3 AlphaGo, 149, 156–8 Assistant, 152 AutoAwesome, 152 DeepFace, 140 Greyball programme, 119, 120 Hippo programme, 32 How-Old.net facial recognition programme, 141 Optic Nerve programme, 174 PredPol, 144, 146 Translate, 146 Solnit, Rebecca, 11–2 solutionism, 4 space telescopes, 168–9 speed of light, 107 Spread Networks, 107 SSEC (IBM Selective Sequence Electronic Calculator), 30, 30–2, 31, 146 Stapel, Diederik, 87–8 Stapledon, Olaf, 20 steam engines, 77 Stellar Wind, 176 Stewart, Elizabeth ‘Betsy,’ 30–1, 31 Steyerl, Hito, 126 stock exchanges, 108 ‘The Storm-Cloud of the Nineteenth Century’ lecture series, 17–9 Stratus homogenitus, 195–6 studios, 130 Stuxnet, 129–30 surveillance about, 243–4 complicity in, 185 computational excesses of, 180–1 devices for, 104 Svalbard archipelago, 51–2, 54 Svalbard Global Seed Vault, 52–3 Svalbard Treaty (1920), 52 Swiss National Bank, 123 Syed, Omar, 158–9 systemic literacy, 5–6 T Taimyr Peninsula, 47–8 Targeted Individuals, 210–1 The Task of the Translator (Benjamin), 147, 155–6 TCP (Transmission Control Protocol), 79 technology acceleration of, 2 complex, 2–3 opacity of, 119 Teletubbies, 217 television, children’s, 216–7 Tesco Clubcard, 245 thalidomide, 95 Thatcher, Margaret, 177 theory of evolution, 78 thermal power plants, 196 Three Guineas (Woolf), 12 Three Laws of Robotics (Asimov), 157 Tillmans, Wolfgang, 71 tools, 13–4 To Photograph the Details of a Dark Horse in Low Light exhibition, 143 totalitarianism, collectivism vs., 139 Toy Freaks, 225–6 transistors, 79, 80 Translate software, 146 translation algorithms, 84 Transmission Control Protocol (TCP), 79 Tri Alpha Energy, 98–101 Trinity test, 25 trolling, 231 Trump, Donald, 169–70, 194–5, 206, 207, 236 trust, science and, 91 trusted source, 220 Tuktoyaktuk Peninsula, 49 turbulence, 65–9 tyranny of techne, 132 U Uber, 117–9, 127 UberEats app, 120–1 unboxing videos, 216, 219 United Airlines, 66–7 Uniting and Strengthening America by Fulfilling Rights and Ending Eavesdropping, Dragnet-collection and Online Monitoring Act (USA FREEDOM Act), 178 USA FREEDOM Act (2015), 178 US Drug Efficacy Amendment (1962), 95 V van Helden, Albert, 102 Veles, objectification of, 235 Verizon, 173 VHF omnidirectional radio range (VOR) installations, 104 Vigilant Telecom, 110–1 Volkswagen, 119–20 von Neumann, John about, 25 ‘Can We Survive Technology?


pages: 272 words: 83,798

A Little History of Economics by Niall Kishtainy

"Robert Solow", Alvin Roth, British Empire, Capital in the Twenty-First Century by Thomas Piketty, car-free, central bank independence, clean water, Corn Laws, creative destruction, credit crunch, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, Eugene Fama: efficient market hypothesis, first-price auction, floating exchange rates, follow your passion, full employment, George Akerlof, greed is good, Hyman Minsky, inflation targeting, invisible hand, John Nash: game theory, John von Neumann, Joseph Schumpeter, Kenneth Arrow, loss aversion, market clearing, market design, means of production, moral hazard, Nash equilibrium, new economy, Occupy movement, Pareto efficiency, Paul Samuelson, prisoner's dilemma, RAND corporation, rent-seeking, Richard Thaler, rising living standards, road to serfdom, Robert Shiller, Robert Shiller, Ronald Reagan, sealed-bid auction, second-price auction, The Chicago School, The Great Moderation, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, trade route, Vickrey auction, Vilfredo Pareto, washing machines reduced drudgery, wealth creators, Winter of Discontent

It had to fight them with ideas too. The idea that had to win was that of economic freedom – for the government to let people decide what to do themselves. Without economic freedom, political freedom was impossible. Without political freedom, people can’t think for themselves anymore. The government tells you what to do, what to think, how to live. Hayek made his warning towards the end of the war in his book The Road to Serfdom. He felt that he had to write it to warn people of the danger, even though he knew that it would annoy a lot of them. Hayek said that if we allowed the government to control us, we’d eventually end up rather like medieval serfs: peasants controlled by a lord, who weren’t allowed to decide anything for themselves. Modern Western civilisation itself was based on the freedom of the individual, said Hayek.

Hayek drew it further towards the free market than most. But even he said that some government spending in the economy was needed: to guarantee a basic living to the unemployed and to provide goods that markets can’t. It wouldn’t threaten freedom if done sparingly. This brought ridicule from those who thought he hadn’t gone far enough. The free-market philosopher Ayn Rand scrawled rude comments about Hayek in the margin of her copy of The Road to Serfdom: he was an ‘ass’ and an ‘absurd fool’. Most economists today disagree with Hayek’s basic position that more government means less freedom. When the government provides schooling for every child, surely it increases people’s freedom? When people can read and write they can participate fully in society – they can get good jobs and understand the policies of the leaders who they vote for. After the war, spending by governments on health and education helped disadvantaged groups like women and black people like never before and enabled them to shape their own lives.

(i), (ii) Kerala (India) (i) Keynes, John Maynard (i), (ii), (iii), (iv), (v), (vi) Keynesian theory (i), (ii), (iii) Klemperer, Paul (i) Krugman, Paul (i), (ii) Kydland, Finn (i), (ii) labour (i) in ancient Greece (i) and market clearing (i) women as unpaid (i) labour theory of value (i), (ii) laissez-faire (i) landowners (i), (ii), (iii) Lange, Oskar (i) law of demand (i), (ii) leakage of spending (i) Lehman Brothers (i) leisure class (i) leisured, women as (i) Lenin, Vladimir Ilyich (i), (ii) Lerner, Abba (i) Lewis, Arthur (i) Lincoln, Abraham (i) List, Friedrich (i) loss aversion (i) Lucas, Robert (i), (ii) MacKay, Charles (i) Macmillan, Harold (i) macro/microeconomics (i) Malaysia, and speculators (i) Malthus, Thomas (i), (ii), (iii) Malynes, Gerard de (i), (ii) manufacturing (i), (ii) division of labour (i) see also Industrial Revolution margin (i) marginal costs (i), (ii) marginal principle (i), (ii), (iii) marginal revenue (i) marginal utility (i), (ii) market, the (i) market clearing (i) market design (i) market failure (i), (ii), (iii), (iv) ‘Market for Lemons, The’ (Akerlof) (i) market power (i) markets, currency (i), (ii) Marshall, Alfred (i), (ii), (iii), (iv), (v) Marx, Karl (i), (ii), (iii), (iv), (v), (vi), (vii) Marxism (i) mathematics (i), (ii), (iii) means of production (i) mercantilism (i), (ii) Mesopotamia (i) Mexico, pegged currency (i) micro/macroeconomics (i) Microsoft (i) Midas fallacy (i) minimum wage (i) Minsky, Hyman (i) Minsky moment (i), (ii) Mirabeau, Marquis de (i), (ii), (iii) Mises, Ludwig von (i), (ii), (iii), (iv) mixed economies (i), (ii) Mobutu Sese Seko (i) model villages (i) models (economic) (i), (ii), (iii), (iv) modern and traditional economies (i), (ii) monetarism (i) monetary policy (i), (ii) money (i), (ii), (iii), (iv), (v), (vi) see also coins; currency money illusion (i) money wages (i) moneylending see usury monopolies (i), (ii) monopolistic competition (i), (ii) monopoly, theory of (i) monopoly capitalism (i), (ii), (iii) monopsony (i) moral hazard (i), (ii) multiplier (i) Mun, Thomas (i), (ii), (iii) Muth, John (i) Nash, John (i), (ii) Nash equilibrium (i) national income (i), (ii), (iii), (iv), (v) National System of Political Economy (List) (i) Nelson, Julie (i) neoclassical economics (i) net product (i) Neumann, John von (i) New Christianity, The (Saint-Simon) (i) new classical economics (i) New Harmony (Indiana) (i) New Lanark (Scotland) (i) Nkrumah, Kwame (i), (ii) non-rival good (i) Nordhaus, William (i), (ii) normative economics (i), (ii) Obstfeld, Maurice (i) Occupy movement (i) oligopolies (i) opportunity cost (i), (ii) organ transplant (i) output per person (i) Owen, Robert (i) paper money (i), (ii) Pareto, Vilfredo (i) pareto efficiency (i), (ii) pareto improvement (i) Park Chung-hee (i) partial equilibrium (i) pegged exchange rate (i) perfect competition (i), (ii), (iii), (iv), (v) perfect information (i) periphery (i) phalansteries (i) Phillips, Bill (i) Phillips curve (i), (ii), (iii), (iv), (v), (vi), (vii) physiocracy (i), (ii) Pigou, Arthur Cecil (i), (ii), (iii) Piketty, Thomas (i), (ii), (iii) Plato (i), (ii), (iii) policy discretion (i) Ponzi, Charles (i) Ponzi finance (i) population and food supply (i), (ii), (iii) of women (i) positive economics (i) poverty (i), (ii), (iii), (iv), (v) in Cuba (i) Sen on (i) and utopian thinkers (i) Prebisch, Raúl (i) predicting (i) Prescott, Edward (i), (ii) price wars (i), (ii) primary products (i) prisoners’ dilemma (i) private costs and benefits (i) privatisation (i) productivity (i), (ii), (iii) profit (i), (ii), (iii), (iv) and capitalism (i), (ii) proletariat (i), (ii) property (private) (i), (ii), (iii), (iv), (v) and communism (i), (ii), (iii), (iv) protection (i), (ii), (iii) provisioning (i) public choice theory (i) public goods (i) quantity theory of money (i) Quesnay, François (i) Quincey, Thomas de (i), (ii) racism (i) Rand, Ayn (i) RAND Corporation (i), (ii) rate of return (i), (ii) rational economic man (i), (ii), (iii), (iv), (v) rational expectations (i), (ii), (iii), (iv), (v) real wages (i), (ii), (iii) recession (i) and governments (i), (ii), (iii) Great Recession (i) Keynes on (i), (ii) Mexican (i) redistribution of wealth (i) reference points (i) relative poverty (i) rent on land (i), (ii), (iii) rents/rent-seeking (i) resources (i), (ii) revolution (i), (ii), (iii), (iv) Cuban (i) French (i), (ii), (iii), (iv) Russian (i), (ii) Ricardo, David (i), (ii), (iii) risk aversion (i) Road to Serfdom, The (Hayek) (i) robber barons (i) Robbins, Lionel (i) Robinson, Joan (i) Roman Empire (i) Romer, Paul (i) Rosenstein-Rodan, Paul (i) Roth, Alvin (i), (ii) rule by nature (i) rules of the game (i) Sachs, Jeffrey (i) Saint-Simon, Henri de (i) Samuelson, Paul (i), (ii) savings (i), (ii) and Say’s Law (i) Say’s Law (i) scarcity (i), (ii), (iii), (iv), (v), (vi) Schumpeter, Joseph (i), (ii) sealed bid auction (i) second price auction (i) Second World War (i) securitisation (i) self-fulfilling crises (i) self-interest (i) Sen, Amartya (i), (ii) missing women (i), (ii), (iii) services (i) shading bids (i), (ii) shares (i), (ii), (iii), (iv), (v), (vi) see also stock market Shiller, Robert (i), (ii) signalling (i) in auctions (i) Smith, Adam (i), (ii), (iii), (iv), (v) social costs and benefits (i) Social Insurance and Allied Services (Beveridge) (i) social security (i), (ii) socialism (i), (ii), (iii), (iv), (v) socialist commonwealth (i) Socrates (i) Solow, Robert (i) Soros, George (i), (ii), (iii) South Africa, war with Britain (i) South Korea, and the big push (i) Soviet Union and America (i) and communism (i), (ii) speculation (i) speculative lending (i) Spence, Michael (i) spending government (fiscal policy) (i), (ii), (iii), (iv), (v), (vi), (vii) and recessions (i), (ii) and Say’s Law (i) see also investment stagflation (i), (ii) Stalin, Joseph (i) standard economics (i), (ii), (iii), (iv) Standard Oil (i) Stiglitz, Joseph (i) stock (i) stock market (i), (ii), (iii), (iv), (v) stockbrokers (i) Strassmann, Diana (i), (ii) strategic interaction (i), (ii) strikes (i) subprime loans (i) subsidies (i), (ii) subsistence (i) sumptuary laws (i) supply curve (i) supply and demand (i), (ii), (iii), (iv) and currencies (i) and equilibrium (i), (ii) in recession (i), (ii), (iii) supply-side economics (i) surplus value (i), (ii) Swan, Trevor (i) tariff (i) taxes/taxation (i) and budget deficit (i) carbon (i) and carbon emissions (i) and France (i) and public goods (i) redistribution of wealth (i) and rent-seeking (i) technology as endogenous/exogenous (i) and growth (i) and living standards (i) terms of trade (i) Thailand (i) Thaler, Richard (i) theory (i) Theory of the Leisure Class, The (Veblen) (i) Theory of Monopolistic Competition (Chamberlain) (i) Thompson, William Hale ‘Big Bill’ (i) threat (i) time inconsistency (i), (ii) time intensity (i) Tocqueville, Alexis de (i) totalitarianism (i) trade (i), (ii), (iii) and dependency theory (i) free (i), (ii), (iii) trading permit, carbon (i) traditional and modern economies (i), (ii) transplant, organ (i) Treatise of the Canker of England’s Common Wealth, A (Malynes) (i) Tversky, Amos (i), (ii) underdeveloped countries (i) unemployment in Britain (i) and the government (i) and the Great Depression (i) and information economics (i) and Keynes (i) and market clearing (i) and recession (i) unions (i), (ii) United States of America and free trade (i) and growth of government (i) industrialisation (i) and Latin America (i) Microsoft (i) recession (i), (ii) and the Soviet Union (i) and Standard Oil (i) stock market (i) wealth in (i) women in the labour force (i) unpaid labour, and women (i) usury (i), (ii), (iii) utility (i), (ii), (iii), (iv) utopian thinkers (i), (ii) Vanderbilt, Cornelius (i), (ii) Veblen, Thorstein (i), (ii), (iii) velocity of circulation (i), (ii) Vickrey, William (i) wage, minimum (i) Walras, Léon (i) Waring, Marilyn (i) wealth (i) and Aristotle (i), (ii) and Christianity (i) Piketty on (i) and Plato (i) Smith on (i) Wealth of Nations, The (Smith) (i), (ii) welfare benefits (i), (ii), (iii), (iv) welfare economics (i) Who Pays for the Kids?


pages: 780 words: 168,782

Strange Rebels: 1979 and the Birth of the 21st Century by Christian Caryl

anti-communist, Ayatollah Khomeini, Berlin Wall, Bretton Woods, British Empire, colonial rule, Deng Xiaoping, financial deregulation, financial independence, friendly fire, full employment, income inequality, industrial robot, Internet Archive, Kickstarter, land reform, land tenure, liberal capitalism, liberation theology, Mahatma Gandhi, means of production, Mikhail Gorbachev, Mohammed Bouazizi, Mont Pelerin Society, Neil Kinnock, new economy, New Urbanism, oil shock, open borders, open economy, Pearl River Delta, plutocrats, Plutocrats, price stability, rent control, road to serfdom, Ronald Reagan, single-payer health, special economic zone, The Chicago School, union organizing, upwardly mobile, Winter of Discontent, Xiaogang Anhui farmers, Yom Kippur War

Just before the 1945 election, Oxford’s student conservatives published a paper declaring that “Liberal Capitalism is as dead as Aristocratic Feudalism,” and welcoming “a state without privilege where each shall enrich himself through the enrichment of all.”16 No one can recall Margaret Roberts taking up a stand that radically differed from this stance. She later claimed to have read Friedrich von Hayek’s Road to Serfdom during her last year at Oxford. If so, it had little visible effect on her public positions. But she was eager to make her mark. Upon her graduation she got a job as a chemist with a food company, where she worked on the development of cake frostings and pie fillings. This position, however, was merely a placeholder for someone of her ambitions. The Conservative Party, to which she remained loyal, was eager to field more female candidates, and she soon got her chance to campaign for a seat in Parliament.

The man who had convened them was an Austrian economist, Friedrich von Hayek, who taught at the London School of Economics (LSE). (He knew Keynes well. During the war, when Hayek was lecturing at Cambridge, he had shared fire-warden duties with his celebrated counterpart.) Hayek was particularly worried about the way that his academic colleagues had provided intellectual support for wartime planning that concentrated economic decision making in the state. A few years earlier he had published a book called The Road to Serfdom, an articulate polemic about the perils of liberty in a world where planners increasingly reigned. Most of those in the British establishment dismissed the book’s ideas. (That did not stop it from becoming a surprise best-seller in the United States.) Most of the men—and they were, in fact, all men—who came together to form the Mont Pèlerin Society (named after the resort where they met) drew their intellectual sustenance from three particular universities: the London School of Economics, the University of Chicago, and the University of Vienna.

After earning a degree in engineering at Trinity College, Cambridge, he had shown a knack for business by opening his own car rental company in the late 1930s. During the war he made a name for himself with inventions for the Royal Air Force, and once it was over he went back into business—this time, oddly enough, in farming, at which he became a tremendous success. Like many others, he was deeply impressed by Hayek’s Road to Serfdom, and a few years after the war’s end he sought out the author for advice. Fisher wanted to contribute to the fight against socialism. Hayek advised him to forget about a career in politics. What was needed, he said, was a “scholarly research organization” that could argue the case for free-market economics and disseminate its conclusions to the broadest possible audience.9 In 1955, Fisher, with the help of some like-minded colleagues, founded the Institute for Economic Affairs.


pages: 324 words: 93,606

No Such Thing as a Free Gift: The Gates Foundation and the Price of Philanthropy by Linsey McGoey

activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, agricultural Revolution, American Legislative Exchange Council, bitcoin, Bob Geldof, cashless society, clean water, cognitive dissonance, collapse of Lehman Brothers, colonial rule, corporate governance, corporate social responsibility, crony capitalism, effective altruism, Etonian, financial innovation, Food sovereignty, Ford paid five dollars a day, germ theory of disease, hiring and firing, Howard Zinn, income inequality, income per capita, invisible hand, Jane Jacobs, Joseph Schumpeter, liquidationism / Banker’s doctrine / the Treasury view, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, meta analysis, meta-analysis, microcredit, Mitch Kapor, Mont Pelerin Society, Naomi Klein, obamacare, Peter Singer: altruism, Peter Thiel, plutocrats, Plutocrats, price mechanism, profit motive, Ralph Waldo Emerson, rent-seeking, road to serfdom, Ronald Reagan, school choice, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, Slavoj Žižek, Steve Jobs, strikebreaker, The Wealth of Nations by Adam Smith, Thorstein Veblen, trickle-down economics, urban planning, wealth creators

CONCLUSION The Selfish Gift One of the most acute ironies concerning the size of today’s philanthropic foundations is that the emergence of well-financed, politically powerful behemoths is rooted in a political philosophy that cautioned against using the centralized power of states to plan or develop economic growth. Take the example of J. Howard Pew, who first established the Pew Charitable Trusts in 1948, not long after first reading Friedrich Hayek’s The Road to Serfdom. As the historian Olivier Zunz describes, Pew’s interest in philanthropy stemmed from meetings with Hayek at gatherings of the Mont Pelerin Society. In The Road to Serfdom and influential essays such as ‘On the Use of Knowledge in Society’, Hayek, inspired by Michael Polanyi’s work on tacit knowledge and Karl Popper’s work on the open society, made an argument that was then radical for its time. He believed that much formal economic theory represented ‘only the visible tip of the vast submerged fund of tacit knowledge, much of which is entirely beyond our powers of articulation’.1 Because of the inaccessibility of the ‘tacit knowledge’ that affects individual decision-making, it is impossible, he argued, for a central planner to respond to the needs of different market actors.

As he writes, ‘The glaring assemblages of wealth during the Gilded Age, the 1920s, or the 1980s and 1990s have themselves come from assertiveness, not passivity. Laissez-faire is a pretense. Government power and preferment have been used by the rich, not shunned’.8 The conservative political theorist Michael Oakeshott is another rare voice on the right to underscore this point. In blunt criticism of Hayek’s theories, Oakeshott has suggested that, ‘This is perhaps the main significance of Hayek’s Road to Serfdom – not the cogency of his doctrine, but the fact that it is a doctrine’. As Oakeshott emphasized: ‘A plan to resist all planning may be better than its opposite, but it belongs to the same style of politics’.9 Since the 1940s, when Hayek first brought together a group of like-minded men in Switzerland, his followers have become even more evangelically attached to a convenient interpretation of Hayek’s ideas than Hayek was himself.


The Rise and Fall of the British Nation: A Twentieth-Century History by David Edgerton

active measures, Berlin Wall, Big bang: deregulation of the City of London, blue-collar work, British Empire, business cycle, call centre, centre right, collective bargaining, colonial exploitation, Corn Laws, corporate governance, deglobalization, deindustrialization, dematerialisation, deskilling, Donald Davies, double helix, endogenous growth, Etonian, European colonialism, feminist movement, first-past-the-post, full employment, imperial preference, James Dyson, knowledge economy, labour mobility, land reform, land value tax, manufacturing employment, means of production, Mikhail Gorbachev, Neil Kinnock, new economy, non-tariff barriers, North Sea oil, offshore financial centre, old-boy network, packet switching, Philip Mirowski, Piper Alpha, plutocrats, Plutocrats, post-industrial society, rising living standards, road to serfdom, Ronald Reagan, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, trade liberalization, union organizing, very high income, wages for housework, wealth creators, Winter of Discontent, women in the workforce, working poor

James Connolly, 19151 If the English proletarian is entitled to an equal share of the income now derived from England’s capital resources, and of the control of their use, because they are the result of exploitation, so on the same principle all the Indians would be entitled not only to the income from but also to the use of a proportional share of the British capital. But what socialists seriously contemplate the equal division of existing capital resources among the people of the world? They all regard the capital as belonging not to humanity but to the nation. F. A. Hayek, The Road to Serfdom (1944)2 The British ruling class of the first third of the twentieth century was rich, confident and distinct. It bestrode the world, not merely the empire. It was spectacularly successful, doing far better than any excepting that of the United States. It gave the world a model for elite behaviour, whether in education or in the playing of sports, indoor and outdoor. The dress of the British gentleman became the uniform of the elites of the world; British ladies were, however, fashion-takers.

George Dangerfield, The Strange Death of Liberal England (1935) What socialists proclaim as a duty towards the fellow members of the existing states, they are not prepared to grant to the foreigner … That socialism so long as it remains theoretical, is internationalist, while as soon as it is put into practice, whether in Russia or in Germany, it becomes violently nationalist, is one of the reasons why ‘liberal socialism’ as most people in the Western world imagine it is purely theoretical, while the practice of socialism is everywhere totalitarian. F. A. Hayek, The Road to Serfdom (1944)1 The idea that the United Kingdom had no intellectuals was once a commonplace. It was a good thing for conservatives in that instead of intellectuals peddling dangerous advanced doctrines, in the United Kingdom, practical common sense ruled. It was a bad thing for left intellectuals in that for them the world of ideas seemed populated by old and bad ideas. But the United Kingdom had a galaxy of thinkers that in other contexts would have been called intellectuals.

They complained that production fell way behind the USA, where output per hour worked was three times greater (they claimed).36 The post-war United Kingdom was suffering from a ‘crisis of under-production’ because labour was being allowed to drift into parasitic distribution, entertainment and similar industries which characterized British capitalism.37 By 1951 the Communist Party had adopted a deeply nationalist policy, called, appropriately enough, the British Road to Socialism.38 The left critique of British capitalism took on a distinctly nationalist hue. It is a telling but not well-known point that Friedrich Hayek’s The Road to Serfdom (1944) was a classical liberal attack not so much on socialism, as on planning, on scientism and on nationalism. IMPERIALISM AND NATIONALISM As well as providing the language of liberalism, socialism and communism, political economy was also there in imperialism and in tariff reform. However, partly through the influence of German historical economics, this political economy was not only more historical but rather more concrete and specific than liberal political economy.


pages: 349 words: 98,868

Nervous States: Democracy and the Decline of Reason by William Davies

active measures, Affordable Care Act / Obamacare, Amazon Web Services, bank run, banking crisis, basic income, business cycle, Capital in the Twenty-First Century by Thomas Piketty, citizen journalism, Climategate, Climatic Research Unit, Colonization of Mars, continuation of politics by other means, creative destruction, credit crunch, decarbonisation, deindustrialization, discovery of penicillin, Dominic Cummings, Donald Trump, drone strike, Elon Musk, failed state, Filter Bubble, first-past-the-post, Frank Gehry, gig economy, housing crisis, income inequality, Isaac Newton, Jeff Bezos, Johannes Kepler, Joseph Schumpeter, knowledge economy, loss aversion, low skilled workers, Mahatma Gandhi, Mark Zuckerberg, mass immigration, meta analysis, meta-analysis, Mont Pelerin Society, mutually assured destruction, Northern Rock, obamacare, Occupy movement, pattern recognition, Peace of Westphalia, Peter Thiel, Philip Mirowski, planetary scale, post-industrial society, quantitative easing, RAND corporation, Ray Kurzweil, Richard Florida, road to serfdom, Robert Mercer, Ronald Reagan, sentiment analysis, Silicon Valley, Silicon Valley startup, smart cities, statistical model, Steve Jobs, the scientific method, Turing machine, Uber for X, universal basic income, University of East Anglia, Valery Gerasimov, We are the 99%, WikiLeaks, women in the workforce, zero-sum game

Thatcher famously once interrupted a Conservative Party policy discussion, by slamming a copy of Hayek’s 1960 work The Constitution of Liberty down on the table, with the words “This is what we believe.” He was a hero to the American free-market thinker Milton Friedman, and spent the 1950s at the University of Chicago, where Friedman led the influential “Chicago School” of economics. Hayek’s 1944 classic, The Road to Serfdom, made him a cult figure in the United States, at a time when free-market ideas were out of favor the world over, and when Hayek himself was viewed as an ideological crank by much of the economics profession, Chicago notwithstanding. But the most decisive phase of Hayek’s career happened in the interim between his association with Mises in Vienna and with Friedman in Chicago, during the 1930s and 1940s when he was employed at the London School of Economics (LSE).

Dating back to Mises’ 1920 pamphlet on economic calculation, an ideal had developed that, so long as markets were relatively unimpaired by government intervention, they could become the organizing principle of an otherwise disorganized, unplanned, even ignorant society. As long as there was a way of coordinating people peacefully, in real time, why the need for experts or facts at all? Hayek had developed an argument along these lines in The Road to Serfdom. If society harnessed the local practical knowledge of entrepreneurs and consumers, and discarded the theories and facts of “intellectuals” working for the state, the question still remained of how to coordinate a large population. If people did not recognize a scientific consensus or truth, what would ensure that they interacted peacefully at all? This same question had concerned Thomas Hobbes in the 1640s.

., Roger, 24, 25 Piketty, Thomas, 74 Pinker, Stephen, 207 plagues, 56, 67–71, 75, 79–80, 81, 89, 95 pleasure principle, 70, 109, 110, 224 pneumonia, 37, 67 Podemos, 5, 202 Poland, 20, 34, 60 Polanyi, Michael, 163 political anatomy, 57 Political Arithmetick (Petty), 58, 59 political correctness, 20, 27, 145 Popper, Karl, 163, 171 populism xvii, 211–12, 214, 220, 225–6 and central banks, 33 and crowd-based politics, 12 and democracy, 202 and elites/experts, 26, 33, 50, 152, 197, 210, 215 and empathy, 118 and health, 99, 101–2, 224–5 and immediate action, 216 in Kansas (1880s), 220 and markets, 167 and private companies, 174 and promises, 221 and resentment, 145 and statistics, 90 and unemployment, 88 and war, 148, 212 Porter, Michael, 84 post-traumatic stress disorder (PTSD), 111–14, 117, 209 post-truth, 167, 224 Potsdam Conference (1945), 138 power vs. violence, 19, 219 predictive policing, 151 presidential election, US (2016), xiv and climate change, 214 and data, 190 and education, 85 and free trade, 79 and health, 92, 99 and immigration, 79, 145 and inequality, 76–7 and Internet, 190, 197, 199 “Make America Great Again,” 76, 145 and opinion polling, 65, 80 and promises, 221 and relative deprivation, 88 and Russia, 199 and statistics, 63 and Yellen, 33 prisoners of war, 43 promises, 25, 31, 39–42, 45–7, 51, 52, 217–18, 221–2 Propaganda (Bernays), 14–15 propaganda, 8, 14–16, 83, 124–5, 141, 142, 143 property rights, 158, 167 Protestantism, 34, 35, 45, 215 Prussia (1525–1947), 8, 127–30, 133–4, 135, 142 psychiatry, 107, 139 psychoanalysis, 107, 139 Psychology of Crowds, The (Le Bon), 9–12, 13, 15, 16, 20, 24, 25 psychosomatic, 103 public-spending cuts, 100–101 punishment, 90, 92–3, 94, 95, 108 Purdue, 105 Putin, Vladimir, 145, 183 al-Qaeda, 136 quality of life, 74, 104 quantitative easing, 31–2, 222 quants, 190 radical statistics, 74 RAND Corporation, 183 RBS, 29 Reagan, Ronald, 15, 77, 154, 160, 163, 166 real-time knowledge, xvi, 112, 131, 134, 153, 154, 165–70 Reason Foundation, 158 Red Vienna, 154, 155 Rees-Mogg, Jacob, 33, 61 refugee crisis (2015–), 60, 225 relative deprivation, 88 representative democracy, 7, 12, 14–15, 25–8, 61, 202 Republican Party, 77, 79, 85, 154, 160, 163, 166, 172 research and development (R&D), 133 Research Triangle, North Carolina, 84 resentment, 5, 226 of elites/experts, 32, 52, 61, 86, 88–9, 161, 186, 201 and nationalism/populism, 5, 144–6, 148, 197, 198 and pain, 94 Ridley, Matt, 209 right to remain silent, 44 Road to Serfdom, The (Hayek), 160, 166 Robinson, Tommy, ix Roosevelt, Franklin Delano, 52 Royal Exchange, 67 Royal Society, 48–52, 56, 68, 86, 133, 137, 186, 208, 218 Rumsfeld, Donald, 132 Russian Empire (1721–1917), 128, 133 Russian Federation (1991–) and artificial intelligence, 183 Gerasimov Doctrine, 43, 123, 125, 126 and information war, 196 life expectancy, 100, 115 and national humiliation, 145 Skripal poisoning (2018), 43 and social media, 15, 18, 199 troll farms, 199 Russian Revolution (1917), 155 Russian SFSR (1917–91), 132, 133, 135–8, 155, 177, 180, 182–3 safe spaces, 22, 208 Sands, Robert “Bobby,” 43 Saxony, 90 scarlet fever, 67 Scarry, Elaine, 102–3 scenting, 135, 180 Schneier, Bruce, 185 Schumpeter, Joseph, 156–7, 162 Scientific Revolution, 48–52, 62, 66, 95, 204, 207, 218 scientist, coining of term, 133 SCL, 175 Scotland, 64, 85, 172 search engines, xvi Second World War, see World War II securitization of loans, 218 seismology, 135 self-employment, 82 self-esteem, 88–90, 175, 212 self-harm, 44, 114–15, 117, 146, 225 self-help, 107 self-interest, 26, 41, 44, 61, 114, 141, 146 Semi-Automatic Ground Environment (SAGE), 180, 182, 200 sentiment analysis, xiii, 12–13, 140, 188 September 11 attacks (2001), 17, 18 shell shock, 109–10 Shrecker, Ted, 226 Silicon Fen, Cambridgeshire, 84 Silicon Valley, California, xvi, 219 and data, 55, 151, 185–93, 199–201 and disruption, 149–51, 175, 226 and entrepreneurship, 149–51 and fascism, 203 and immortality, 149, 183–4, 224, 226 and monopolies, 174, 220 and singularity, 183–4 and telepathy, 176–8, 181, 185, 186, 221 and weaponization, 18, 219 singularity, 184 Siri, 187 Skripal poisoning (2018), 43 slavery, 59, 224 smallpox, 67 smart cities, 190, 199 smartphone addiction, 112, 186–7 snowflakes, 22, 113 social indicators, 74 social justice warriors (SJWs), 131 social media and crowd psychology, 6 emotional artificial intelligence, 12–13, 140–41 and engagement, 7 filter bubbles, 66 and propaganda, 15, 18, 81, 124 and PTSD, 113 and sentiment analysis, 12 trolls, 18, 20–22, 27, 40, 123, 146, 148, 194–8, 199, 209 weaponization of, 18, 19, 22, 194–5 socialism, 8, 20, 154–6, 158, 160 calculation debate, 154–6, 158, 160 Socialism (Mises), 160 Society for Freedom in Science, 163 South Africa, 103 sovereignty, 34, 53 Soviet Russia (1917–91), 132, 133, 135–8, 177, 180, 182–3 Spain, 5, 34, 84, 128, 202 speed of knowledge, xvi, 112, 124, 131, 134, 136, 153, 154, 165–70 Spicer, Sean, 3, 5 spy planes, 136, 152 Stalin, Joseph, 138 Stanford University, 179 statactivism, 74 statistics, 62–91, 161, 186 status, 88–90 Stoermer, Eugene, 206 strong man leaders, 16 suicide, 100, 101, 115 suicide bombing, 44, 146 superbugs, 205 surveillance, 185–93, 219 Sweden, 34 Switzerland, 164 Sydenham, Thomas, 96 Syriza, 5 tacit knowledge, 162 talking cure, 107 taxation, 158 Tea Party, 32, 50, 61, 221 technocracy, 53–8, 59, 60, 61, 78, 87, 89, 90, 211 teenage girls, 113, 114 telepathy, 39, 176–9, 181, 185, 186 terrorism, 17–18, 151, 185 Charlottesville attack (2017), 20 emergency powers, 42 JFK Airport terror scare (2016), x, xiii, 41 Oxford Circus terror scare (2017), ix–x, xiii, 41 September 11 attacks (2001), 17, 18 suicide bombing, 44, 146 vehicle-ramming attacks, 17 war on terror, 131, 136, 196 Thames Valley, England, 85 Thatcher, Margaret, 154, 160, 163, 166 Thiel, Peter, 26, 149–51, 153, 156, 174, 190 Thirty Years War (1618–48), 34, 45, 53, 126 Tokyo, Japan, x torture, 92–3 total wars, 129, 142–3 Treaty of Westphalia (1648), 34, 53 trends, xvi, 168 trigger warnings, 22, 113 trolls, 18, 20–22, 27, 40, 123, 146, 148, 194–8, 199, 209 Trump, Donald, xiv and Bannon, 21, 60–61 and climate change, 207 and education, 85 election campaign (2016), see under presidential election, US and free trade, 79 and health, 92, 99 and immigration, 145 inauguration (2017), 3–5, 6, 9, 10 and inequality, 76–7 “Make America Great Again,” 76, 145 and March for Science (2017), 23, 24, 210 and media, 27 and opinion polling, 65, 80 and Paris climate accord, 207 and promises, 221 and relative deprivation, 88 and statistics, 63 and Yellen, 33 Tsipras, Alexis, 5 Turing, Alan, 181, 183 Twitter and Corbyn’s rallies, 6 and JFK Airport terror scare (2016), x and Oxford Circus terror scare (2017), ix–x and Russia, 18 and sentiment analysis, 188 and trends, xvi and trolls, 194, 195 Uber, 49, 185, 186, 187, 188, 191, 192 UK Independence Party, 65, 92, 202 underemployment, 82 unemployment, 61, 62, 72, 78, 81–3, 87, 88, 203 United Kingdom austerity, 100 Bank of England, 32, 33, 64 Blitz (1940–41), 119, 143, 180 Brexit (2016–), see under Brexit Cameron government (2010–16), 33, 73, 100 Center for Policy Studies, 164 Civil Service, 33 climate-gate (2009), 195 Corbyn’s rallies, 5, 6 Dunkirk evacuation (1940), 119 education, 85 financial crisis (2007–9), 29–32, 100 first past the post, 13 general election (2015), 80, 81 general election (2017), 6, 65, 80, 81, 221 Grenfell Tower fire (2017), 10 gross domestic product (GDP), 77, 79 immigration, 63, 65 Irish hunger strike (1981), 43 life expectancy, 100 National Audit Office (NAO), 29 National Health Service (NHS), 30, 93 Office for National Statistics, 63, 133 and opiates, 105 Oxford Circus terror scare (2017), ix–x, xiii, 41 and pain, 102, 105 Palantir, 151 Potsdam Conference (1945), 138 quantitative easing, 31–2 Royal Society, 138 Scottish independence referendum (2014), 64 Skripal poisoning (2018), 43 Society for Freedom in Science, 163 Thatcher government (1979–90), 154, 160, 163, 166 and torture, 92 Treasury, 61, 64 unemployment, 83 Unite for Europe march (2017), 23 World War II (1939–45), 114, 119, 138, 143, 180 see also England United Nations, 72, 222 United States Bayh–Dole Act (1980), 152 Black Lives Matter, 10, 225 BP oil spill (2010), 89 Bush Jr. administration (2001–9), 77, 136 Bush Sr administration (1989–93), 77 Bureau of Labor, 74 Central Intelligence Agency (CIA), 3, 136, 151, 199 Charlottesville attack (2017), 20 Civil War (1861–5), 105, 142 and climate change, 207, 214 Clinton administration (1993–2001), 77 Cold War, see Cold War Defense Advanced Research Projects Agency (DARPA), 176, 178 Defense Intelligence Agency, 177 drug abuse, 43, 100, 105, 115–16, 131, 172–3 education, 85 Federal Bureau of Investigation (FBI), 137 Federal Reserve, 33 Fifth Amendment (1789), 44 financial crisis (2007–9), 31–2, 82, 158 first past the post, 13 Government Accountability Office, 29 gross domestic product (GDP), 75–7, 82 health, 92, 99–100, 101, 103, 105, 107, 115–16, 158, 172–3 Heritage Foundation, 164, 214 Iraq War (2003–11), 74, 132 JFK Airport terror scare (2016), x, xiii, 41 Kansas populists (1880s), 220 libertarianism, 15, 151, 154, 158, 164, 173 life expectancy, 100, 101 March For Our Lives (2018), 21 March for Science (2017), 23–5, 27, 28, 210 McCarthyism (1947–56), 137 Million-Man March (1995), 4 National Aeronautics and Space Administration (NASA), 23, 175 National Defense Research Committee, 180 National Park Service, 4 National Security Agency (NSA), 152 Obama administration (2009–17), 3, 24, 76, 77, 79, 158 Occupy Wall Street (2011), 5, 10, 61 and opiates, 105, 172–3 and pain, 103, 105, 107, 172–3 Palantir, 151, 152, 175, 190 Paris climate accord (2015), 205, 207 Parkland attack (2018), 21 Patriot Act (2001), 137 Pentagon, 130, 132, 135, 136, 214, 216 presidential election (2016), see under presidential election, US psychiatry, 107, 111 quantitative easing, 31–2 Reagan administration (1981–9), 15, 77, 154, 160, 163, 166 Rumsfeld’s “unknown unknowns” speech (2002), 132 Semi-Automatic Ground Environment (SAGE), 180, 182, 200 September 11 attacks (2001), 17, 18 Tea Party, 32, 50, 61, 221 and torture, 93 Trump administration (2017–), see under Trump, Donald unemployment, 83 Vietnam War (1955–75), 111, 130, 136, 138, 143, 205 World War I (1914–18), 137 World War II (1939–45), 137, 180 universal basic income, 221 universities, 151–2, 164, 169–70 University of Cambridge, 84, 151 University of Chicago, 160 University of East Anglia, 195 University of Oxford, 56, 151 University of Vienna, 160 University of Washington, 188 unknown knowns, 132, 133, 136, 138, 141, 192, 212 unknown unknowns, 132, 133, 138 “Use of Knowledge in Society, The” (Hayek), 161 V2 flying bomb, 137 vaccines, 23, 95 de Vauban, Sébastien Le Prestre, Marquis de Vauban, 73 vehicle-ramming attacks, 17 Vesalius, Andreas, 96 Vienna, Austria, 153–5, 159 Vietnam War (1955–75), 111, 130, 136, 138, 143, 205 violence vs. power, 19, 219 viral marketing, 12 virtual reality, 183 virtue signaling, 194 voice recognition, 187 Vote Leave, 50, 93 Wainright, Joel, 214 Wales, 77, 90 Wall Street, New York, 33, 190 War College, Berlin, 128 “War Economy” (Neurath), 153–4 war on drugs, 43, 131 war on terror, 131, 136, 196 Watts, Jay, 115 weaponization, 18–20, 22, 26, 75, 118, 123, 194, 219, 223 weapons of mass destruction, 132 wearable technology, 173 weather control, 204 “What Is An Emotion?”


pages: 393 words: 91,257

The Coming of Neo-Feudalism: A Warning to the Global Middle Class by Joel Kotkin

Admiral Zheng, Andy Kessler, autonomous vehicles, basic income, Bernie Sanders, call centre, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, Cass Sunstein, clean water, creative destruction, deindustrialization, demographic transition, don't be evil, Donald Trump, edge city, Elon Musk, European colonialism, financial independence, Francis Fukuyama: the end of history, gig economy, Gini coefficient, Google bus, guest worker program, Hans Rosling, housing crisis, income inequality, informal economy, Jane Jacobs, Jaron Lanier, Jeff Bezos, job automation, job satisfaction, Joseph Schumpeter, land reform, liberal capitalism, life extension, low skilled workers, Lyft, Mark Zuckerberg, market fundamentalism, Martin Wolf, mass immigration, megacity, Nate Silver, new economy, New Urbanism, Occupy movement, Parag Khanna, Peter Thiel, plutocrats, Plutocrats, post-industrial society, post-work, postindustrial economy, postnationalism / post nation state, precariat, profit motive, RAND corporation, Ray Kurzweil, rent control, Richard Florida, road to serfdom, Robert Gordon, Sam Altman, Satyajit Das, sharing economy, Silicon Valley, smart cities, Steve Jobs, Stewart Brand, superstar cities, The Death and Life of Great American Cities, The Future of Employment, The Rise and Fall of American Growth, Thomas L Friedman, too big to fail, trade route, Travis Kalanick, Uber and Lyft, uber lyft, universal basic income, unpaid internship, upwardly mobile, We are the 99%, Wolfgang Streeck, women in the workforce, working-age population, Y Combinator

Beginning in the 1980s, the industrial labor force globally has received a shrinking share of the gross domestic product pie. In 1975, the labor share was about 64 percent of corporate income, but it dropped to 59 percent by 2012. This pattern applied not only to wealthy markets in the West, but also to laborrich markets like China, India, and Mexico.10 Instead of a path upward, those in the global working class increasingly face economic insecurity and even a descent into a new kind of serfdom. The Road to Serfdom Serfdom emerged out of the wreckage of the Roman Empire, replacing slavery but reducing free peasants to another form of dependency and subjection. Slaves had been imported from the far ends of the empire as it expanded and were put to work in the huge estates that grew in the countryside. “Today these are large estates,” wrote a fourth-century poet; “at one time they were little villages.”

Kegel, “Lord John Manners and the Young England Movement: Romanticism in Politics,” Western Political Quarterly, vol. 14:3 (1961), 691–97. 17 J. Hobsbawm, The Age of Revolution (New York: New American Library, 1962), 290–91. 18 Orlando Figes, A People’s Tragedy: The Russian Revolution, 1891–1924 (New York: Penguin, 1996), 87. 19 Mayer, The Persistence of the Old Regime, 293–94; Ernst Nolte, Three Faces of Fascism, trans. Leila Vennewitz (New York: New American Library, 1969), 28. 20 Frederick Hayek, The Road to Serfdom (Chicago: University of Chicago Press, 1972), 17; Nolte, Three Faces of Fascism, 57, 75, 166; F. L. Carsten, The Rise of Fascism (Berkeley: University of California Press, 1967), 11–12. 21 Wiener, English Culture and the Decline of the Industrial Spirit, 107. 22 “The far right’s new fascination with the Middle Ages,” Economist, January 2, 2017, https://www.economist.com/blogs/democracyinamerica/2017/01/medieval-memes. 23 “Vladimir Putin embraces the Russian church,” Economist, February 3, 2018, https://www.economist.com/europe/2018/02/03/vladimir-putin-embraces-the-russian-church; Andrey Pertsev, “President and Patriarch: What Putin Wants from the Orthodox Church,” Carnegie Moscow Center, December 19, 2017, https://carnegie.ru/commentary/75058; Yaroslav Trofimov, “Russia’s Turn to Its Asian Past,” Wall Street Journal, July 7–8, 2018, https://www.wsj.com/articles/russias-turn-to-its-asian-past-1530889247. 24 Ya Hua, “In China, Feudal Answers to Modern Problems,” New York Times, April 10, 2013, https://www.nytimes.com/2013/04/11/opinion/yu-in-china-feudal-answers-for-modern-problems.html; Jeremy Page, “Why China Is Turning Back to Confucius,” Wall Street Journal, September 20, 2015, https://www.wsj.com/articles/why-china-is-turning-back-to-confucius-1442754000; Richard McGregor, The Party: The Secret World of China’s Communist Rulers (New York: Harper, 2010), 26. 25 Lee Kwan Yew, From Third World to First (New York, Harper, 2000), 491–94; McGregor, The Party: The Secret World of China’s Communist Rulers, 32–33. 26 Wiener, English Culture and the Decline of the Industrial Spirit, 93. 27 Robert Verkaik, “Just 96 months to save the world, says Prince Charles,” Independent, June 9, 2009, https://www.independent.co.uk/environment/green-living/just-96-months-to-save-world-says-prince-charles-1738049.html; “Prince Charles: Feudal Critic of Capitalism,” Socialist Party of Great Britain, February 2003, https://www.worldsocialism.org/spgb/socialist-standard/2000s/2003/no-1182-february-2003/prince-charles-feudal-critic-capitalism; Oscar Rickett, “What We Can Learn From Prince Charles from his Letters to Politicians,” Vice, May 15, 2015, https://www.vice.com/en_us/article/yvxgzx/prince-charles-letters-284. 28 Michael Kimmelman, “The Kind of Thinking Cities Need,” New York Times, October 28, 2016, https://www.nytimes.com/2016/10/30/opinion/sunday/the-kind-of-thinking-cities-need.html. 29 Dominic Green, “A Philosopher on the Decline of the English Countryside, Brexit, and the European Project,” Weekly Standard, November 17, 2017, https://www.weeklystandard.com/a-philosopher-on-the-decline-of-the-english-countryside-brexit-and-the-european-project/article/2010521. 30 Karl Sharro, “Density over Sprawl,” in The Future of Community, ed.

National Interest, February 8, 2018, https://nationalinterest.org/feature/are-tech-companies-avoiding-taxes-2413; Jesse Ducker and Simon Bowers, “After a Tax Crackdown, Apple Found a New Shelter for Its Profits,” New York Times, November 6, 2017, https://www.nytimes.com/2017/11/06/world/apple-taxes-jersey.html. 7 Darel E. Paul, “The European Center Weakens,” Real Clear Politics, May 28, 2019, https://www.realclearpolitics.com/2019/05/28/the_european_center_weakens_475904.html. 8 Barrington Moore, Jr., Social Origins of Dictatorship and Democracy (Boston: Beacon, 1966), 418. 9 Frederick Hayek, The Road to Serfdom (Chicago: University of Chicago Press, 1972), 13. 10 Matthew Continetti, “Our Bankrupt Elite,” Washington Free Beacon, March 15, 2019, https://freebeacon.com/columns/our-bankrupt-elite/. 11 “Democrats: The Real Party of the Rich,” Investor’s Business Daily, April 2, 2014, https://www.investors.com/politics/editorials/democrat-political-donations-outstrip-republicans/; Rupert Durwall, “Behind the Green New Deal: An elite war on the working class,” New York Post, March 26, 2019, https://nypost.com/2019/03/26/behind-the-green-new-deal-an-elite-war-on-the-working-class/. 12 Alexis de Tocqueville, The Ancien Regime and the Revolution (London: Penguin, 2008), 144. 13 John Hinderaker, “Exposing the Real Costs of ‘Green’ Energy,” Power Line, March 12, 2019, https://www.powerlineblog.com/archives/2019/03/exposing-the-real-costs-of-green-energy.php. 14 Anastasia Lin, “The Cultural Revolution Comes to North America,” Wall Street Journal, April 7, 2019, https://www.wsj.com/articles/the-cultural-revolution-comes-to-north-america-11554661623. 15 Rebecca Ratcliffe, “Record private jet flights into Davos as leaders arrive for climate talk,” Guardian, January 22, 2019, https://www.theguardian.com/global-development/2019/jan/22/record-private-jet-flights-davos-leaders-climate-talk; Michael Shellenberger, “The Real Reason They Behave Hypocritically On Climate Change Is Because They Want To,” Forbes, August 20, 2019, https://www.forbes.com/sites/michaelshellenberger/2019/08/20/the-real-reason-they-behave-hypocritically-on-climate-change-is-because-they-want-to/#5e242363185a. 16 Eliza Relman, “Alexandria Ocasio-Cortez said billionaires shouldn’t exist as long as Americans live in abject poverty,” Business Insider, January 22, 2019, https://www.businessinsider.com/alexandria-ocasio-cortez-thinks-billionaires-shouldnt-exist-2019-1; Walter E.


pages: 184 words: 54,833

Why Orwell Matters by Christopher Hitchens

anti-communist, British Empire, colonial rule, deindustrialization, Etonian, hiring and firing, land reform, Louis Pasteur, Mahatma Gandhi, Nelson Mandela, Norman Mailer, nuclear winter, road to serfdom, Ronald Reagan, sensible shoes

It’s also why he placed great hope in the native wisdom and decency of the British, or better say the English, whose qualities he thought might resolve the problem without too much practical or theoretical difficulty. (This in turn is yet another reason why he is often despised on the Left, which abominates, or at any rate used to abominate, the simplemindedness of English empiricism.) The clearest exposition of this divided realization is contained in Orwell’s review of The Road to Serfdom, by Friedrich August von Hayek. When this short book was first published in 1944, not many people could have appreciated the influence that it was to enjoy. Hayek, a political economist of the Austrian school, had settled in England, and was by a later irony to succeed George Orwell’s old foe Harold Laski in the chair at the London School of Economics. His advice to the Conservative Party in the 1945 General Election was widely thought to have been calamitous, in that it encouraged Winston Churchill to make a hugely incautious speech warning that Labour’s welfarist plans would require a form of ‘Gestapo’ to enforce them.

That was out of tune with the spirit of the times, and the British Tories were to remain nervously social-democratic until the late 1970s, when Margaret Thatcher broke the political consensus. Among her chosen advisors and mentors was Hayek, who has been of incalculable influence in the revival of free-market theory in Europe and America. (I remember the surprise I felt when hearing him praised by the Yugoslav dissident Milovan Djilas in Belgrade in 1977.) Orwell’s review of The Road to Serfdom, which appeared in the Observer, could almost have been the crib from which Churchill derived his later speech:Shortly, Professor Hayek’s thesis is that Socialism inevitably leads to despotism, and that in Germany the Nazis were able to succeed because the Socialists had already done most of their work for them: especially the intellectual work of weakening the desire for liberty. By bringing the whole of life under the control of the State, Socialism necessarily gives power to an inner ring of bureaucrats, who in almost every case will be men who want power for its own sake and will stick at nothing in order to retain it.


pages: 209 words: 53,236

The Scandal of Money by George Gilder

Affordable Care Act / Obamacare, bank run, Bernie Sanders, bitcoin, blockchain, borderless world, Bretton Woods, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, Claude Shannon: information theory, Clayton Christensen, cloud computing, corporate governance, cryptocurrency, currency manipulation / currency intervention, Daniel Kahneman / Amos Tversky, Deng Xiaoping, disintermediation, Donald Trump, fiat currency, financial innovation, Fractional reserve banking, full employment, George Gilder, glass ceiling, Home mortgage interest deduction, index fund, indoor plumbing, industrial robot, inflation targeting, informal economy, Innovator's Dilemma, Internet of things, invisible hand, Isaac Newton, Jeff Bezos, John von Neumann, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, Law of Accelerating Returns, Marc Andreessen, Mark Zuckerberg, Menlo Park, Metcalfe’s law, money: store of value / unit of account / medium of exchange, mortgage tax deduction, obamacare, Paul Samuelson, Peter Thiel, Ponzi scheme, price stability, Productivity paradox, purchasing power parity, quantitative easing, quantitative trading / quantitative finance, Ray Kurzweil, reserve currency, road to serfdom, Robert Gordon, Robert Metcalfe, Ronald Reagan, Sand Hill Road, Satoshi Nakamoto, Search for Extraterrestrial Intelligence, secular stagnation, seigniorage, Silicon Valley, smart grid, South China Sea, special drawing rights, The Great Moderation, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Tim Cook: Apple, time value of money, too big to fail, transaction costs, trickle-down economics, Turing machine, winner-take-all economy, yield curve, zero-sum game

My editor at Regnery, Tom Spence, helped shape my ramshackle manuscript into the sleek and pithy text that you are now reading. Key Terms for the Information Theory of Money A Disordered Glossary of Counterintuitive Truths Monopoly money: Money issued by sovereign states that block all competitive moneys in their domains, whether by regulation or by taxes not imposed on the sovereign currency. It’s what we have in America and the rest of the world. Friedrich Hayek, the author of The Road to Serfdom, declared that “the source and root of all monetary evil [is] the government monopoly on the issue and control of money.” Like most state-run monopolies, the money monopoly serves the interests of politicians rather than entrepreneurs, power rather than knowledge, old wealth rather than new ideas. Gold and bitcoin are the chief alternatives to monopoly money. Hypertrophy of finance: The growth of finance beyond the rate of growth of the commerce it intermediates.

A Tale of Two Schools of Free-Market Economics (Washington, DC: Capital Press, 2005). Skousen superbly covers the canonical sources of Austrian and Chicago economic thought. See also Robert P. Murphy and Donald J. Boudreaux, Choice: Cooperation, Enterprise and Human Action (Oakland, CA: Independent Institute, 2015). For the definitive texts, see Ludwig von Mises, Human Action, and Friedrich Hayek, The Road to Serfdom, both available in many editions. 6.Daniel Kahneman, Thinking, Fast and Slow (New York, NY: Farrar, Straus and Giroux, 2011). The Israeli cognitive psychologist Amos Tversky was his collaborator. CHAPTER 1: THE DREAM AND THE DOLLAR 1.Louis Simpson, “In California,” in The Owner of the House: New Collected Poems, 1940–2001 (Rochester, NY: BOA Editions, 2003), 173. 2.“There was virtually no growth before 1750, and thus there is no guarantee that growth will continue indefinitely.


End the Fed by Ron Paul

affirmative action, Bernie Madoff, Bernie Sanders, Bretton Woods, business cycle, crony capitalism, currency manipulation / currency intervention, fiat currency, Fractional reserve banking, hiring and firing, housing crisis, illegal immigration, invisible hand, Khyber Pass, Long Term Capital Management, market bubble, means of production, moral hazard, Ponzi scheme, price mechanism, reserve currency, road to serfdom, Robert Gordon, Ronald Reagan, too big to fail, tulip mania, Y2K

When Bernanke was pressed to reveal further information about where the trillions of dollars were going from the Fed, the answer was quite clear: “We think that’s counterproductive,” that is, to reveal this information. 3 My first exposure to the Austrian school of economics was through reading The Road to Serfdom by F. A. Hayek in the early 1960s. Hayek, in the middle of the financial chaos following the breakdown of Bretton Woods, won the Nobel Prize in 1974 for his work on the economics of the business cycle. He is well known today for his work on competing currencies, developed in the market, along with the notion that a basket of currency may suffice as reserves. The basket of currency idea was something I never had a great affinity for, but I always accepted the idea that if it was developed by a nongovernment entity, no fraud involved, and it worked, so be it. It certainly would be superior to government fiat money. Many years after reading The Road to Serfdom, I had the pleasure of hearing Hayek lecture in Washington, around 1980.


How to Be a Liberal by Ian Dunt

4chan, Alfred Russel Wallace, bank run, battle of ideas, Big bang: deregulation of the City of London, Boris Johnson, bounce rate, British Empire, Brixton riot, Carmen Reinhart, centre right, David Ricardo: comparative advantage, Dominic Cummings, Donald Trump, eurozone crisis, experimental subject, feminist movement, Francis Fukuyama: the end of history, full employment, Growth in a Time of Debt, illegal immigration, invisible hand, John Bercow, Kenneth Rogoff, liberal world order, Mark Zuckerberg, mass immigration, means of production, Mohammed Bouazizi, Northern Rock, old-boy network, Paul Samuelson, Peter Thiel, price mechanism, profit motive, quantitative easing, recommendation engine, road to serfdom, Ronald Reagan, Saturday Night Live, Scientific racism, Silicon Valley, The Wealth of Nations by Adam Smith, too big to fail, upwardly mobile, Winter of Discontent, working poor, zero-sum game

‘Once the free working of the market is impeded beyond a certain degree,’ he said, ‘the planner will be forced to extend his controls until they become all-comprehensive.’ Most of Hayek’s writing was obtuse, technical and dry. But on one occasion, he let himself go and expressed his profound fears over a slide to totalitarianism. It was called The Road to Serfdom. He thought the book would be read by a few hundred people, but an abridged version was included as a Reader’s Digest edition in the US. It exploded. A million copies were ordered. The Road to Serfdom became a gospel for right-wingers in America and Britain and Hayek developed a cult following. Keynes read it while crossing the Atlantic in summer 1944. ‘The voyage has given me the chance to read your book properly,’ he wrote to Hayek when he reached America. ‘In my opinion it is a grand book.

The Penguin Classics Essential Keynes, also edited by Robert Skidelsky, provides a single-volume edition of Keynes’ writings on economics, philosophy, social policy. For books on Hayek, try Hayek: His Contribution to the Political and Economic Thought of Our Time, by Eamonn Butler or Friedrich Hayek: A Biography, by Alan Ebenstein. To get a sense of his own writing, read The Constitution of Liberty and The Road to Serfdom. The negotiations over the establishment of the world trading system outlined in the book were much more intense and fragile than there was space to describe. The WTO’s own resource on the talks is very useful and can be found at https://www.wto.org/english/thewto_e/history_e/history_e.htm. It’s worth paying particular attention to the article on the Atlantic Charter and the blogs by Roy Santana, an expert on tariffs and customs issues.

See European Union (EU) EU referendum campaign and result 1 government response and May 1 Johnson as prime minister 1 Trump and nationalism 1 euro 1 European Central Bank (ECB) 1, 2, 3, 4 European Coal and Steel Community 1 European Convention on Human Rights (ECHR) 1, 2 European Court of Justice 1, 2, 3 European Economic Community 1 European Parliament 1 European Union (EU) Charter of Fundamental Rights of the European Union 1 EU citizens 1 EU referendum 1 Greece financial crisis 1 Hungary and Orbán 1, 2 institutions 1 migrants and refugees 1 origins 1 post-war cooperation 1, 2 Russia and Ukraine 1 Troika programmes 1, 2 UK leaves 1 eurozone 1, 2, 3 Evergreen State College 1 Exclusion Crisis 1, 2, 3, 4 executive power 1, 2, 3, 4 Exhibit B show 1 experts 1, 2, 3 Facebook 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 Fairfax, Thomas 1, 2, 3, 4, 5, 6, 7 A Remonstrance from his Excellency Sir Thomas Fairfax 1 fake news 1 family separation policy 1 Fannie Mae (Federal National Mortgage Association) 1 Farage, Nigel 1, 2, 3, 4 far right 1, 2, 3, 4, 5 fascism Carlyle 1 emergence of 1 Germany 1, 2 identity and belonging 1 Orwell on 1, 2, 3, 4, 5 post-war economics 1, 2, 3 Fawcett, Millicent 1 Federal Housing Administration 1 Federal Reserve 1, 2, 3 female genital mutilation 1 female priests 1 female suffrage 1 feminism 1, 2, 3, 4, 5 Ferdinand, Archduke Franz 1 feudalism 1, 2 Fidesz 1, 2, 3, 4 Figes, Orlando 1 financial crisis 1, 2, 3, 4 Financial Services Authority (FSA) 1 financial services deregulation 1 first generation rights 1, 2 First World War 1, 2, 3, 4, 5 fiscal policy 1 Five Star Movement 1 Five Year Plan 1 Flower, Eliza 1 forced marriage 1 Forster, EM 1 Maurice 1 4chan 1 Fox, Liam 1 Fox News 1, 2 France American independence 1, 2 anti-semitism 1 Austria war 1 Dreyfus Affair 1 Estates General 1 Greece financial crisis 1 Napoleon rule 1 National Convention 1 origins of revolution 1 post-war cooperation 1 revolution aftermath 1, 2 Seven Years’ War 1 the Terror 1 Franco, General Francisco 1 freedom American independence 1 Berlin on 1, 2 England history 1 French Revolution aftermath 1, 2 Levellers Agreement 1 liberalism struggle 1 Locke on 1, 2, 3, 4 Mill and Taylor on 1, 2, 3, 4, 5 Puritans 1, 2 Rousseau on 1, 2 freedom of conscience 1, 2 freedom to publish 1, 2 free market 1, 2, 3 free movement 1, 2, 3 free press 1, 2, 3 free speech 1, 2, 3, 4, 5, 6, 7, 8 free trade 1, 2, 3 French Revolution aftermath 1, 2 anti-semitism 1 Carlyle history 1 development of liberal values 1 events of 1 Rights of Man 1, 2, 3, 4, 5, 6 Rousseau and general will 1, 2 Frenkel, Naftaly Aronovich 1 Friedman, Milton 1, 2 FSA (Financial Services Authority) 1 Fukuyama, Francis 1 full employment 1, 2 G20 1, 2 Gaddafi, Colonel Muammar 1 Galbraith, John 1, 2 Galileo 1, 2, 3, 4 gas chambers 1, 2 gatekeepers 1 GATT (General Agreement on Tariffs and Trade) 1, 2, 3 gay identity 1, 2, 3, 4, 5, 6, 7 Geithner, Timothy 1, 2 gender, and sex 1 General Agreement on Tariffs and Trade (GATT) 1, 2, 3 general will 1, 2, 3, 4, 5 Generation Identity 1 generation snowflake 1 German Workers’ Party 1 Germany Austria-Hungary alliance 1 First World War 1 Greece financial crisis 1 interwar economy 1 migrants and refugees 1 Nazi rule 1, 2 post-war cooperation 1 Second World War 1 welfare state 1 Gestapo 1, 2 Gingrich, Newt 1, 2 Ginnie Mae (Government National Mortgage Association) 1 Girondins 1, 2, 3 Glass-Steagall Act 1, 2, 3 gleichschaltung 1 Glorious Revolution 1, 2, 3, 4 Google 1, 2, 3 Gove, Michael 1, 2, 3 government American independence 1 debt and austerity 1 financial crisis measures 1 and institutions 1 legitimate government 1 Locke on 1, 2, 3, 4 post-war Keynesianism 1, 2, 3 Smith on 1, 2 Government Sponsored Enterprises (GSEs) 1 Gramm–Leach–Bliley Act 1 Great Depression 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 Greater London Council 1, 2, 3 Great Terror, Russia 1 Greece 1, 2, 3, 4, 5 Greenspan, Alan 1, 2 group identity 1, 2, 3, 4, 5, 6, 7, 8 Guatemala 1 Guérin, Jules 1 guillotine 1, 2, 3, 4 gulags 1, 2, 3, 4 Gyurcsány, Ferenc 1 haircuts (finance) 1, 2 Haiti earthquake 1 half-truth 1, 2 Hall, Stuart 1 Hamilton, Gene 1 Handsworth riots 1 Hannity, Sean 1, 2 Hardenberg, Charlotte von 1 Hardy, Henry 1 harm principle 1, 2, 3, 4 Hayek, Friedrich Capital Consumption 1 on communism end 1 Constitution of Liberty 1 death of 1 economic thought 1 and Keynes 1 on Mill and Taylor 1, 2 Nobel Prize 1 post-war economics 1, 2, 3 The Road to Serfdom 1 state intervention 1, 2, 3 Hayek, Laurence 1 Heads of Proposals 1, 2, 3 health care 1, 2, 3, 4 health tourism 1 Heart of Texas 1 Hébert, Jacques 1, 2, 3 Hébertists 1, 2 Henry, Major Hubert-Joseph 1, 2 Herder, Johann Gottfried von 1 heresy 1, 2, 3, 4, 5 higher and lower pleasures 1, 2 higher self 1 Himmler, Heinrich 1, 2 Hitler, Adolf 1, 2, 3, 4, 5, 6, 7, 8, 9 Hobbes, Thomas 1 Leviathan 1 Holdheim, William 1 Hollander, Jacob Harry 1 Holocaust 1, 2 Holodomor 1 home ownership 1 homophobia 1, 2 homosexuality 1, 2 Hostile Environment 1, 2, 3, 4, 5 House of Commons 1, 2, 3, 4, 5, 6 House of Lords 1, 2, 3 House of Representatives 1 housing 1, 2, 3 Howard, Michael 1 Huber, Ernst Rudolf 1 human rights 1, 2, 3 Hume, David 1 Hungary 1, 2 hyperinflation 1, 2, 3 hypertext 1 hypotheses 1 identity cultural appropriation 1 cultural identity 1, 2 cultural relativism 1 group identity 1, 2 identity and belonging 1 national identity 1, 2, 3, 4, 5, 6 nationalism 1, 2 Orwell on patriotism 1, 2 identity cards 1 identity politics cultural appropriation 1 culture war 1 difference 1 disagreement 1 group identity 1, 2 intersectionality 1, 2 marginalised groups 1, 2 origins 1 right-wing identity politics 1 social media 1 identity war 1, 2 Ignatieff, Michael 1 IMF (International Monetary Fund) 1, 2 immigration EU referendum 1, 2 France anti-semitism 1 Hungary and Orbán 1 liberalism of the future 1 nationalism 1, 2, 3 right-wing identity politics 1, 2, 3 UK policy 1 US policy 1, 2 imperialism 1, 2, 3 incommensurable goods 1, 2 Independents (English Civil War) 1, 2 individual Berlin on 1, 2 communism and fascism 1, 2, 3, 4 Constant 1, 2, 3, 4, 5 Descartes 1, 2, 3, 4 identity 1, 2, 3 invention of teenager 1 Keynesianism 1 Levellers 1 liberalism 1, 2, 3 Locke 1, 2, 3 Marxism 1, 2 Mill 1, 2, 3, 4, 5 nationalism 1 Orwell 1, 2 Overton 1 Puritans 1 and reason 1 Smith 1 individualism 1, 2, 3, 4, 5 individual rights 1, 2, 3, 4, 5, 6, 7, 8, 9 industrial revolution 1, 2 inflation 1, 2, 3, 4, 5, 6 information flow 1, 2, 3 Instagram 1, 2, 3 institutions 1 Intellectual Dark Web 1 intellectual property 1 interest rates 1, 2, 3 internal emigration 1 International Brigades 1 international law 1 International Monetary Fund (IMF) 1, 2 international relations 1 internet 1, 2, 3 intersectionality 1 investment banks 1, 2, 3, 4, 5 invisible hand 1, 2, 3, 4 Iraq 1, 2, 3 Ireland 1, 2 Ireton, Henry 1, 2, 3, 4 Islam 1 Italy 1, 2, 3, 4, 5, 6, 7 Jacobins 1, 2, 3, 4, 5, 6, 7 James II 1, 2, 3, 4, 5, 6, 7 Japan 1 Javid, Sajid 1, 2 Jehovah’s Witnesses 1 Jews anti-semitism 1, 2, 3 Berlin’s identity 1, 2 Dreyfus Affair 1, 2 Germany 1, 2, 3 group identity 1 Levellers 1 right-wing identity politics 1 Second World War and Holocaust 1 St Louis ship 1 Johannot, Marie-Charlotte 1 Johnson, Boris 1, 2, 3, 4 Johnson, Lyndon 1 journalism 1, 2, 3, 4 Joyce, George 1 JP Morgan 1, 2 judiciary 1, 2 Juncker, Jean-Claude 1 justice 1, 2 Kant, Immanuel 1 Kennedy, John F 1 Keynes, John Maynard The General Theory of Employment, Interest and Money 1 and Hayek 1, 2, 3 post-war economics 1, 2, 3, 4, 5 state intervention 1 Time Man of the Year 1 death of 1 Keynesianism 1, 2, 3, 4 Khader, Naser 1 knowledge 1, 2 Kogon, Eugen 1 Komsomol 1 Kosinski, Michal 1 Krugman, Paul 1 Kruks, Sonia 1 Kukathas, Chandran 1 kulaks 1, 2 Kurdi, Alan 1, 2 Kymlicka, Will 1 labour 1, 2, 3 Lagarde, Christine 1, 2 laissez-faire austerity measures 1 communism 1 Constant 1, 2 financial crisis 1 Hayek 1, 2 inflation policy 1 liberalism 1, 2, 3, 4, 5 Mill 1, 2, 3, 4, 5 post-war economics 1, 2, 3 right-wing identity politics 1 Soviet Union collapse 1 land 1, 2, 3 language 1, 2, 3 Laski, Harold 1 Latvia 1 Laud, William 1, 2, 3, 4, 5 Law for the Restoration of the Professional Civil Service 1 law of nature 1, 2, 3 Law of Suspects 1 League Party 1 Leave.EU 1, 2.


pages: 273 words: 34,920

Free Market Missionaries: The Corporate Manipulation of Community Values by Sharon Beder

anti-communist, battle of ideas, business climate, corporate governance, en.wikipedia.org, full employment, income inequality, invisible hand, liquidationism / Banker’s doctrine / the Treasury view, minimum wage unemployment, Mont Pelerin Society, new economy, old-boy network, popular capitalism, Powell Memorandum, price mechanism, profit motive, Ralph Nader, rent control, risk/return, road to serfdom, Ronald Reagan, school vouchers, shareholder value, spread of share-ownership, structural adjustment programs, The Chicago School, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, Torches of Freedom, trade liberalization, traveling salesman, trickle-down economics, Upton Sinclair, Washington Consensus, wealth creators, young professional

An effective ideology will mobilise political supporters to share the general beliefs and goals of a party, interest group or politician. PETER SELF2 In 1947, a group of 37 like-minded people from the US, Britain and Europe – economists, historians and journalists – met in a fashionable resort at Mont Pèlerin in Switzerland. They had been invited there by Friedrich von Hayek, an Austrian-born economic theoretician who worked at the London School of Economics. Hayek’s 1944 book The Road to Serfdom, was said to be ‘the first intellectually respectable defense of free-market doctrine to have appeared in decades’. The book, which argued that government planning leads to dictatorship and that free markets should reign, was republished in condensed form by Reader’s Digest. The Book-of-the-Month Club distributed over a million copies. In it Hayek looked back to the glories of free market England in the 19th century, ignoring the mass poverty and atrocious working conditions of the ‘dark satanic mills’.

The first was the Institute of Economic Affairs (IEA) which promoted a laissez-faire libertarian view, keeping the economic fundamentalism ‘alive when academic opinion had pronounced it brain-dead’.10 Lord Anthony Fisher conceived of the idea of the IEA at the prompting of Friedrich von Hayek in the early 1950s, having visited the Foundation for Economic Education (FEE) in the US. According to Ralph Harris, a director of the IEA and member of the Mont Pèlerin Society, ‘The institute started in 1957, you could say the direct result of the Mont Pèlerin Society, of The Road to Serfdom, of Hayek’s ideas of freedom and competitive enterprise.’ It set out to gain wide acceptance for the ‘philosophy of the market economy’ through communications directed at the opinion leaders such as intellectuals, politicians, business people and journalists. It started as a one-person operation and at its height in the 1980s reached 15 full-time employees with a half-million-pound budget provided mainly by about 250 companies, including large transnational firms.11 The IEA began by producing pamphlets based on Hayek and Friedman’s ideas, as well as analyses of various policies in the light of those ideas.

It was founded in 1974 by Keith Joseph, an active member of the IEA, and Margaret Thatcher, who had also been associated with the IEA. Joseph, a former Tory minister, who is credited with Thatcher’s conversion to economic fundamentalism, is reported to have been converted himself when he took a suitcase of IEA-recommended books and pamphlets by Friedman and Hayek on holiday with him. Margaret Thatcher had read Hayek’s Road to Serfdom while at Oxford 112 FREE MARKET MISSIONARIES and it is said to have ‘made a lasting impression on her’. Thatcher also became a member of the Mont Pèlerin Society.14 In the mid-1970s, not long after becoming Leader, she visited the Conservative Party’s research department. . . . She reached into her briefcase and pulled out a book. It was Hayek’s The Constitution of Liberty. She held it up for all to see.


pages: 767 words: 208,933

Liberalism at Large: The World According to the Economist by Alex Zevin

activist fund / activist shareholder / activist investor, affirmative action, anti-communist, Asian financial crisis, bank run, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business climate, business cycle, capital controls, centre right, Chelsea Manning, collective bargaining, Columbine, Corn Laws, corporate governance, corporate social responsibility, creative destruction, credit crunch, David Ricardo: comparative advantage, debt deflation, desegregation, disruptive innovation, Donald Trump, Edward Snowden, failed state, Fall of the Berlin Wall, financial deregulation, financial innovation, Francis Fukuyama: the end of history, full employment, Gini coefficient, global supply chain, hiring and firing, imperial preference, income inequality, interest rate derivative, invisible hand, John von Neumann, Joseph Schumpeter, Julian Assange, Khartoum Gordon, land reform, liberal capitalism, liberal world order, light touch regulation, Long Term Capital Management, market bubble, Martin Wolf, means of production, Mikhail Gorbachev, Monroe Doctrine, Mont Pelerin Society, moral hazard, Naomi Klein, new economy, New Journalism, Norman Macrae, Northern Rock, Occupy movement, Philip Mirowski, plutocrats, Plutocrats, price stability, quantitative easing, race to the bottom, railway mania, rent control, rent-seeking, road to serfdom, Ronald Reagan, Rosa Parks, Snapchat, Socratic dialogue, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, trade liberalization, trade route, unbanked and underbanked, underbanked, unorthodox policies, upwardly mobile, War on Poverty, WikiLeaks, Winter of Discontent, Yom Kippur War, young professional

This was followed by an immediate qualification, however, for ‘if events prove that restrictionism and monopoly are organically inseparable from Government intervention in the economic field, then it will be the duty of the Economist to that extent to swing back towards the purest individualism.’41 Hayek, a devoted reader, gently mocked the idea of such an unbroken continuity with the Victorian era, wondering in a review whether Crowther wasn’t himself a little doubtful about it.42 The Economist for its part had only praise for the outspoken emigré at the London School of Economics when his polemic against planning, The Road to Serfdom, appeared a few months later. ‘The state that is fully planned, that is democratic and that preserves the basic rights of individuals does not exist’, it agreed, adding only that returning to pure laissez-faire could prove as oppressive for individuals as a command economy. ‘The problem of this century is to find the most fruitful method of combining planning – the right kind and degree of planning – with freedom.’43 The Empire Front: Writing Blank Cheques Concessions to the working class, embodied in visions of welfare and full employment at home, had their complement abroad in ‘the commonwealth at war’ – the dominions, crown colonies and other dependencies being promised at one and the same time greater self-government and tighter economic integration, underwritten by capital investment from London.44 After the fall of France in 1940, the Economist shifted focus from European to ‘imperial defence, to see how best a world Empire can win a world war – if need be, alone’.

This great economist ‘was extremely unfortunate in the moment of his death’, observed Crowther in a review of the first full biography of Keynes by another former pupil, Roy Harrod.77 For he left implementation of theories worked out in the inter-war years of mass unemployment to disciples without ‘a readiness equal to his own to change their minds’, so that already the post-war period was ‘plagued by chronic inflation, by an excess of the wrong sort of planning and by an aversion from thrift’. Keynes was being pressed into the service of this ‘New Illiberalism’ despite having been a passionate liberal, argued Crowther, who seized on a now famous letter from Keynes praising Hayek’s The Road to Serfdom: ‘a grand book, morally and philosophically I find myself in agreement with virtually the whole of it, and not only in agreement with it but deeply moved agreement.’ Dalton was the only person singled out by name for crimes against Keynesianism, with Crowther adding a knife-twist: ‘His old Cambridge friend “Daddy” Dalton scattered to the winds, in a few months of roaring boom, the American credits which he [Keynes] literally gave his life to win for Britain.’78 ‘I write to you to supplement and to correct some false impressions on Maynard Keynes, at once my teacher, my friend and my advisor at the Treasury’, Dalton replied to what he privately called the ‘Editor of the Prig’s Weekly’.

Weakest post-war in the universities, its adherents had long gathered outside of these to spread their message in think tanks and ‘thought collectives’ – nowhere more successfully than in Britain. This reflected the strength of classical liberalism in its world historic home, from which neoliberals had always derived inspiration. In the 30s, the stiffest resistance to Keynes had after all come from the LSE, where before departing for the US, Hayek wrote The Road to Serfdom as a call to reject ‘foreign ideas’ about the state, and return to the classical conceptions of Smith and Mill; and the economics department had ties from its inception to the most important international association of neoliberal thinkers, the Mont Pelerin Society in Switzerland, founded in 1947.90 The launch in 1955 of the Institute for Economic Affairs further cemented these connections.


pages: 586 words: 160,321

The Euro and the Battle of Ideas by Markus K. Brunnermeier, Harold James, Jean-Pierre Landau

Affordable Care Act / Obamacare, asset-backed security, bank run, banking crisis, battle of ideas, Ben Bernanke: helicopter money, Berlin Wall, Bretton Woods, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Celtic Tiger, central bank independence, centre right, collapse of Lehman Brothers, collective bargaining, credit crunch, Credit Default Swap, currency peg, debt deflation, Deng Xiaoping, different worldview, diversification, Donald Trump, Edward Snowden, en.wikipedia.org, Fall of the Berlin Wall, financial deregulation, financial repression, fixed income, Flash crash, floating exchange rates, full employment, German hyperinflation, global reserve currency, income inequality, inflation targeting, information asymmetry, Irish property bubble, Jean Tirole, Kenneth Rogoff, Martin Wolf, mittelstand, money market fund, Mont Pelerin Society, moral hazard, negative equity, Neil Kinnock, new economy, Northern Rock, obamacare, offshore financial centre, open economy, paradox of thrift, pension reform, price stability, principal–agent problem, quantitative easing, race to the bottom, random walk, regulatory arbitrage, rent-seeking, reserve currency, road to serfdom, secular stagnation, short selling, Silicon Valley, South China Sea, special drawing rights, the payments system, too big to fail, union organizing, unorthodox policies, Washington Consensus, WikiLeaks, yield curve

See Jesús Fernández-Villaverde, “Magna Carta, the Rule of Law, and the Limits on Government,” University of Pennsylvania Paper (2015). 5. François Perroux, Des mythes hitlériens à l’Europe allemande (Paris: Librairie Générale de Droit et de Jurisprudence, 1940), 45, 291–292 (the texts quoted were written in 1935). 6. Friedrich Hayek, The Road to Serfdom (London: Routledge, 1944), 129. 7. Erinnerungen Hans Schäffers an Ernst Trendelenburg. 8. Friedrich A. Hayek, The Road to Serfdom (London: Routledge and Kegan Paul, 1944), 55. 9. Hayek, Road to Serfdom, 55, 94. 10. Harold James, The German Slump: Politics and Economics 1924–1936 (New York: Oxford University Press, 1986) 353. 11. Walter Eucken The Foundations of Economics: History and Theory in the Analysis of Economic Reality, translated by Terence Wilmot Hutchison (Berlin; Heidelberg: Springer-Verlag, 1992), 316. 12.

German Economic Tradition Hayek’s Critique of a Planned Economy The most far-ranging critic of the German or Central European model of etatism was Friedrich Hayek, an Austrian who mostly worked in the United Kingdom but toward the end of his life settled in Freiburg, in Southwestern Germany. He was largely without political influence until the 1970s. Hayek accurately identified that the interventionist approach of the Weimar Republic (which had its origins in wartime planning) created a sort of path dependency, in which the answer to failure was not an abandonment of the approach but rather a more radical version. In The Road to Serfdom, Friedrich Hayek asserted that Walter Rathenau, the intellectual who devised Germany’s innovative planning regime of World War I, “would have shuddered had he realised the consequences of his totalitarian economics” but nevertheless “deserves a considerable place in any fuller history of the growth of Nazi ideas. Through his writings he has probably, more than any other man, determined the economic views of the generation which grew up in Germany during and immediately after the last war; and some of his closest collaborators were later to form the backbone of the staff of Goering’s Five Year Plan [sic] administration.”6 Partial controls looked ineffective, so the Nazis wanted more extensive and radically enforced control.


pages: 395 words: 116,675

The Evolution of Everything: How New Ideas Emerge by Matt Ridley

"Robert Solow", affirmative action, Affordable Care Act / Obamacare, Albert Einstein, Alfred Russel Wallace, AltaVista, altcoin, anthropic principle, anti-communist, bank run, banking crisis, barriers to entry, bitcoin, blockchain, Boris Johnson, British Empire, Broken windows theory, Columbian Exchange, computer age, Corn Laws, cosmological constant, creative destruction, Credit Default Swap, crony capitalism, crowdsourcing, cryptocurrency, David Ricardo: comparative advantage, demographic transition, Deng Xiaoping, discovery of DNA, Donald Davies, double helix, Downton Abbey, Edward Glaeser, Edward Lorenz: Chaos theory, Edward Snowden, endogenous growth, epigenetics, Ethereum, ethereum blockchain, facts on the ground, falling living standards, Ferguson, Missouri, financial deregulation, financial innovation, Frederick Winslow Taylor, Geoffrey West, Santa Fe Institute, George Gilder, George Santayana, Gunnar Myrdal, Henri Poincaré, hydraulic fracturing, imperial preference, income per capita, indoor plumbing, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, Jane Jacobs, Jeff Bezos, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kevin Kelly, Khan Academy, knowledge economy, land reform, Lao Tzu, long peace, Lyft, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, means of production, meta analysis, meta-analysis, mobile money, money: store of value / unit of account / medium of exchange, Mont Pelerin Society, moral hazard, Necker cube, obamacare, out of africa, packet switching, peer-to-peer, phenotype, Pierre-Simon Laplace, price mechanism, profit motive, RAND corporation, random walk, Ray Kurzweil, rent-seeking, reserve currency, Richard Feynman, rising living standards, road to serfdom, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, sharing economy, smart contracts, South Sea Bubble, Steve Jobs, Steven Pinker, The Wealth of Nations by Adam Smith, Thorstein Veblen, transaction costs, twin studies, uber lyft, women in the workforce

There is growing support for the theory that the new economic order which the Germans seek to impose will come because it must.’ Most powerful were the voices of refugees from both Hitler and Stalin, who would insist to their Western hosts that Nazi and communist totalitarianisms were not at opposite ends of the spectrum, but were close neighbours: people like Hannah Arendt, Isaiah Berlin, Michael Polanyi and Karl Popper. The most famous of these voices was Friedrich Hayek’s, with his prescient warning in The Road to Serfdom (1944) that socialism and fascism were not really opposites, but had ‘fundamental similarity of methods and ideas’, that economic planning and state control were at the top of an illiberal slope that led to tyranny, oppression and serfdom, and that the individualism of free markets was the true road to liberation. Ignoring Hayek, within months of victory Britain embarked on a comprehensive nationalisation of the means of production in industry, in health, in education and in society.

The Practice of Management. Harper Business. And Brokaw, L. 2014. How Procter & Gamble Uses External Ideas For Internal Innovation. MIT Sloan Management Review 16 June 2014. On intellectual property, Tabarrok, A. 2011. Launching the Innovation Renaissance. TED Books. On knowledge, Hayek, F.A. 1945. The uses of knowledge in society. American Economic Review 4:519–530. And Hayek, Friedrich A. The Road to Serfdom (Condensed Version). Reader’s Digest. On the relationship between science and technology, Kealey, Terence 2013. The Case Against Public Science. Cato-unbound.org 5 August 2013. Also Kealey, T. and Ricketts, M. 2014. Modelling science as a contribution good. Research Policy 43:1014–1024. Also Pielke, R. Jr 2013. Faith-based science policy. Essay at rogerpielkejr.blogspot.co.uk February 2013.

‘Mahatma’ 178 Garzik, Jeff 312 Gas Research Institute 136 Gassendi, Pierre 12, 13 Gates, Bill 222 Gaua 81 Gazzaniga, Michael 144, 147 GCHQ 303 genes: background 59–61; function of 65; and the genome 62–4; and junk or surplus DNA 66–72; mutation 72–5; selfish gene 66, 68 Genghis Khan 87, 223 geology 17 George III 245 Georgia Inst. of Technology 272 German Society for Racial Hygiene 198, 202 Germany 12, 29, 101, 122, 138, 231, 243, 247, 251, 253, 318 Ghana 181, 229 Giaever, Ivar 273 Gilder, George 287 Gilfillan, Colum 127 Gladstone, William Ewart 246 Glaeser, Edward 92 Glasgow University 22, 25 Glass-Steagall Act 287 global warming 271–6 Glorious Revolution (England) 243 Gobi desert 92 Goddard, Robert 138 Godkin, Ed 250 Goethe, Charles 202 Goethe, Johann Wolfgang von 248 Goldberg, Jonah 252; Liberal Fascism 199, 251 Goldman Sachs 3 Goldsmith, Sir Edward 211 Goodenough, Oliver 36 Google 120, 130, 132, 188 Gore, A1205, 211, 273, 274 Gosling, Raymond 121 Gottlieb, Anthony 41 Gottlieb, Richard 11 Gould, Stephen Jay 38, 53, 69 government: commerce and freedom 243–4; counterrevolution of 247–50; definition 236; free trade and free thinking 244–6; as God 254–5; and the Levellers 241–2; liberal fascism 250–2; libertarian revival 252–3; prison system 237–8; and protection rackets 238–41; and the wild west 235–6 Grant, Madison 202; The Passing of the Great Race 200–1 Graur, Dan 71, 72 Gray, Asa 44; Descent of Man 44–5 Gray, Elisha 119 Great Depression 105, 125, 318 Great Recession (2008–09) 97, 297 Greece 259 Green, David 115 Green, Paul 226 Green Revolution 208, 210 Greenblatt, Stephen 9, 11n Greenhalgh, Susan 212; Just One Child 210–11 Greenspan Put 289 Gregory, Ryan 71 Gregory VII, Pope 239 Gresham’s Law 279 Guardian (newspaper) 53 Gulf War 298 Gutenberg, Johannes 220 Hadiths 262 Haeckel, Ernst 197, 198 Hahnemann, Samuel 271 Haig, David 57 Hailey, Malcolm, Lord 231 Hailo 109 Haiti 207 Hamel, Gary 224 Hamilton, Alexander 244 Hannan, Daniel 35, 242, 315 Hannauer, Nick 107 Hansen, Alvin 105 Hanson, Earl Parker, New Worlds Emerging 209 Harford, Tim, Adapt: Why Success Always Starts With Failure 127, 255 Harriman, E.H. 200 Harris, Judith Rich 155–6, 158–65, 169; The Nurture Assumption 160–1 Harris, Sam 147, 148, 149–50, 151, 152 Harvard Business Review 224 Harvard University 9, 28, 57, 155, 159, 300 Hayek, Friedrich 35, 102, 128, 133, 230, 232, 243; The Constitution of Liberty 300; The Road to Serfdom 253 Haynes, John Dylan 146–7 Hazlett, Tom 223 Heidegger, Martin 201 Helsinki 211, 212 Henrich, Joe 89 Henry II 34 Henry VII 240 Henry the Navigator, Prince 134 Heraclius 262 Heritage Foundation 241 Higgs, Robert 240 Hill, P.J. 235–6 Hines, Melissa 169 Hitler, Adolf 198, 201, 217, 251, 252, 253; Mein Kampf 252 Hobbes, Thomas 8, 12, 197–8, 243 Holdren, John 208 Holland 142 Holland, Tom, In the Shadow of the Sword 261–2 Holocaust 214 Hong Kong 31, 92, 97, 101, 190, 191, 233–4 Hood, Bruce 148; The Self Illusion 145 Horgan, John 60 Hortlund, Per 284 ‘How Aid Underwrites Repression in Ethiopia’ (2010) 232 Howard, John 273 Hu Yaobang 212 Human Genome Project 64 Human Rights Watch 232 Hume, David 20, 21–2, 40–1, 54, 276; Concerning Natural Religion 39–40; Natural History of Religion 257 Humphrey, Nick 144, 154 Hussein, Saddam 298 Hutcheson, Francis 22, 25 Hutchinson, Allan 33 Hutton, James 17 Huxley, Aldous, Brave New World 167 Huxley, Julian 205, 211 Hyderabad 181 Ibsen, Henrik 249 Iceland 32 Iliad 87 Immigration Act (US, 1924) 201 Incas 86, 259 India 34, 87, 108, 125, 177–8, 181, 183, 196, 204, 206, 213, 214, 258, 259 Industrial (R)evolution 63, 104, 108,109–10, 135, 220, 248, 254–5, 277 Infoseek (search engine) 120 Intel 223 Intergovernmental Panel on Climate Change (IPCC) 273–4 International Code of Conduct for Information Security 305 International Federation of Eugenics Organisations 202 International Monetary Fund (IMF) 286 International Telecommunications Union (ITU) 305 internet: balkanisation of the web 302–6; and bitcoin 308–12; and blockchains 306–9, 313–14; central committee of 305–6; complexity of 300–1; emergence of 299–300; individuals associated with 301–2; and politics 314–16 Internet Corporation for Assigned Names and Numbers (ICANN) 305–6 Iraq 32, 255 Ireland 213, 246 Irish Republican Army (IRA) 240 Islam 259, 260, 262–3 Islamabad 92 Islamic State 240 Israel, Paul 119 Italian city states 101 Italy 34, 247, 251 Ive, Sir Jonathan 319 Jablonka, Eva 56, 57 Jackson, Doug 309 Jacobs, Jane 92 Jagger, Bianca 211 Jainism 260 Japan, Japanese 32, 122, 125, 231, 232, 288 Jefferson, Thomas 15, 20, 114, 244 Jehovah 13, 276 Jerome, St 11 Jesus Christ 8, 9, 88, 257, 258, 263, 266 Jevons, William Stanley 63, 106 Jews 29, 142, 197, 202–3, 257 Jobs, Steve 119, 222 Johnson, Boris 166; The Churchill Factor: How One Man Made History 217 Johnson, Lyndon B. 206, 207, 289 Johnson, Steven Berlin 220; Where Good Ideas Come From: The Natural History of Innovation 127 Jones, Judge John 49, 50, 51 Jonson, Ben 15 J.P.


pages: 573 words: 115,489

Prosperity Without Growth: Foundations for the Economy of Tomorrow by Tim Jackson

"Robert Solow", bank run, banking crisis, banks create money, Basel III, basic income, bonus culture, Boris Johnson, business cycle, carbon footprint, Carmen Reinhart, Cass Sunstein, choice architecture, collapse of Lehman Brothers, creative destruction, credit crunch, Credit Default Swap, David Graeber, decarbonisation, dematerialisation, en.wikipedia.org, energy security, financial deregulation, Financial Instability Hypothesis, financial intermediation, full employment, Growth in a Time of Debt, Hans Rosling, Hyman Minsky, income inequality, income per capita, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invisible hand, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, laissez-faire capitalism, liberal capitalism, Mahatma Gandhi, mass immigration, means of production, meta analysis, meta-analysis, moral hazard, mortgage debt, Naomi Klein, new economy, offshore financial centre, oil shale / tar sands, open economy, paradox of thrift, peak oil, peer-to-peer lending, Philip Mirowski, profit motive, purchasing power parity, quantitative easing, Richard Thaler, road to serfdom, Robert Gordon, Ronald Reagan, science of happiness, secular stagnation, short selling, Simon Kuznets, Skype, smart grid, sovereign wealth fund, Steve Jobs, The Chicago School, The Great Moderation, The Rise and Fall of American Growth, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, universal basic income, Works Progress Administration, World Values Survey, zero-sum game

These crystallised particularly clearly in the long-running dispute between the followers of the Austrian philosopher Friedrich Hayek and those of the British economist John Maynard Keynes.3 A vociferous defender of individual freedom of choice, Hayek warned of the lure of collectivism. He observed candidly the abuses of power that prevailed in the early communist countries and railed against central planning as a form of tyranny. For Hayek, government intervention was the first step on The Road to Serfdom.4 Keynes, for his part, was far from blind to the limitations of government. He was profoundly aware of the dystopian incarnations of communism (and of fascism) and wrote extensively about them. He would even complain privately about the short-sightedness of Western politicians. But he saw nonetheless an absolutely fundamental role for government in maintaining economic and indeed social stability.

Hart, Stuart 2007. Capitalism at the Crossroads, 2nd edition. New Jersey: Wharton School of Publishing. Harvey, David 2014. Seventeen Contradictions and the End of Capitalism. London: Profile Books. Harvey, David 2010. A Companion to Marx’s Capital. London: Verso. Hayden, Anders 1999. Sharing the Work, Sparing the Planet – Work Time, Consumption and Ecology. London: Zed Books. Hayek, Friedrich 1944. The Road to Serfdom. London: Routledge. Hayward, Bronwyn and Karen O’Brien 2010. ‘Security of What for Whom? Rethinking social contracts in a changing climate’, in K. L. O’Brien, A. St. Clair and B. Kristoffersen (eds), Climate Change, Ethics, and Human Security. Cambridge: Cambridge University Press. Helliwell, John 2003. ‘How’s life? Combining individual and national variables to explain subjective wellbeing’.

INDEX Locators in italic refer to figures absolute decoupling 84–6; historical perspectives 89–96, 90, 92, 94, 95; mathematical relationship with relative decoupling 96–101, 111 abundance see opulence accounting errors, decoupling 84, 91 acquisition, instinctive 68 see also symbolic role of goods adaptation: diminishing marginal utility 51, 68; environmental 169; evolutionary 226 advertising, power of 140, 203–4 Africa 73, 75–7; life-expectancy 74; philosophy 227; pursuit of western lifestyles 70; growth 99; relative income effect 58, 75; schooling 78 The Age of Turbulence (Greenspan) 35 ageing populations 44, 81 agriculture 12, 148, 152, 220 Aids/HIV 77 algebra of inequality see inequality; mathematical models alienation: future visions 212, 218–19; geographical community 122–3; role of the state 205; selfishness vs. altruism 137; signals sent by society 131 alternatives: economic 101–2, 139–40, 157–8; hedonism 125–6 see also future visions; post-growth macroeconomics; reform altruism 133–8, 196, 207 amenities see public services/amenities Amish community, North America 128 An Inquiry into the Nature and Causes of the Wealth of Nations (Smith) 123, 132 angelised growth see green growth animal welfare 220 anonymity/loneliness see alienation anthropological perspectives, consumption 70, 115 anti-consumerism 131 see also intrinsic values anxiety: fear of death 69, 104, 115, 212–15; novelty 116–17, 124, 211 Argentina 58, 78, 78, 80 Aristotle 48, 61 The Art of Happiness (Dalai Lama) 49 arts, Baumol’s cost disease 171–2 assets, stranded 167–8 see also ownership austerity policies xxxiii–xxxv, 189; and financial crisis 24, 42–3; mathematical models 181 Australia 58, 78, 128, 206 authoritarianism 199 autonomy see freedom/autonomy Ayres, Robert 143 backfire effects 111 balance: private interests/common good 208; tradition/innovation 226 Bank for International Settlements 46 bank runs 157 banking system 29–30, 39, 153–7, 208; bonuses 37–8 see also financial crisis; financial system basic entitlements: enterprise as service 142; income 67, 72–9, 74, 75, 76, 78; limits to growth 63–4 see also education; food; health Basu, Sanjay 43 Baumol, William 112, 147, 222, 223; cost disease 170, 171, 172, 173 BBC survey, geographical community 122–3 Becker, Ernest 69 Belk, Russ 70, 114 belonging 212, 219 see also alienation; community; intrinsic values Bentham, Jeremy 55 bereavement, material possessions 114, 214–15 Berger, Peter 70, 214 Berry, Wendell 8 Better Growth, Better Climate (New Climate Economy report) 18 big business/corporations 106–7 biodiversity loss 17, 47, 62, 101 biological perspectives see evolutionary theory; human nature/psyche biophysical boundaries see limits (ecological) Black Monday 46 The Body Economic (Stuckler and Basu) 43 bond markets 30, 157 bonuses, banking 37–8 Bookchin, Murray 122 boom-and-bust cycles 157, 181 Booth, Douglas 117 borrowing behaviour 34, 118–21, 119 see also credit; debt Boulding, Elise 118 Boulding, Kenneth 1, 5, 7 boundaries, biophysical see limits (ecological) bounded capabilities for flourishing 61–5 see also limits (flourishing within) Bowen, William 147 Bowling Alone (Putnam) 122 Brazil 58, 88 breakdown of community see alienation; social stability bubbles, economic 29, 33, 36 Buddhist monasteries, Thailand 128 buen vivir concept, Ecuador xxxi, 6 built-in obsolescence 113, 204, 220 Bush, George 121 business-as-usual model 22, 211; carbon dioxide emissions 101; crisis of commitment 195; financial crisis 32–8; growth 79–83, 99; human nature 131, 136–7; need for reform 55, 57, 59, 101–2, 162, 207–8, 227; throwaway society 113; wellbeing 124 see also financial systems Canada 75, 206, 207 capabilities for flourishing 61–5; circular flow of the economy 113; future visions 218, 219; and income 77; progress measures 50–5, 54; role of material abundance 67–72; and prosperity 49; relative income effect 55–61, 58, 71, 72; role of shame 123–4; role of the state 200 see also limits (flourishing within); wellbeing capital 105, 107–10 see also investment Capital in the 21st Century (Piketty) 33, 176, 177 Capital Institute, USA 155 capitalism 68–9, 80; structures 107–13, 175; types 105–7, 222, 223 car industry, financial crisis 40 carbon dioxide emissions see greenhouse gas emissions caring professions, valuing 130, 147, 207 see also social care Cat on a Hot Tin Roof (Williams) 213 causal path analysis, subjective wellbeing 59 Central Bank 154 central human capabilities 64 see also capabilities for flourishing The Challenge of Affluence (Offer) 194 change see alternatives; future visions; novelty/innovation; post-growth macroeconomics; reform Chicago school of economics 36, 156 children: advertising to 204; labour 62, 154; mortality 74–5, 75, 206 Chile xxxiii, xxxvii, 58, 74, 74, 75, 76 China: decoupling 88; GDP per capita 75; greenhouse gas emissions 91; growth 99; life expectancy 74; philosophy 7; post-financial crisis 45–6; pursuit of western lifestyles 70; relative income effect 58; resource use 94; savings 27; schooling 76 choice, moving beyond consumerism 216–18 see also freedom/autonomy Christian doctrine see religious perspectives chromium, commodity price 13 Cinderella economy 219–21, 224 circular economy 144, 220 circular flow of the economy 107, 113 see also engine of growth citizen’s income 207 see also universal basic income civil unrest see social stability Clean City Law, São Paulo 204 climate change xxxv, 22, 47; critical boundaries 17–20; decoupling 85, 86, 87, 98; fatalism 186; investment needs 152; role of the state 192, 198, 201–2 see also greenhouse gas emissions Climate Change Act (2008), UK 198 clothing see basic entitlements Club of Rome, Limits to Growth report xxxii, xxxiii, 8, 11–16, Cobb, John 54 collectivism 191 commercial bond markets 30, 157 commitment devices/crisis of 192–5, 197 commodity prices: decoupling 88; financial crisis 26; fluctuation/volatility 14, 21; resource constraints 13–14 common good: future visions 218, 219; vs. freedom and autonomy 193–4; vs. private interests 208; role of the state 209 common pool resources 190–2, 198, 199 see also public services/amenities communism 187, 191 community: future visions of 219–20; geographical 122–3; investment 155–6, 204 see also alienation; intrinsic values comparison, social 115, 116, 117 see also relative income effect competition 27, 112; positional 55–61, 58, 71, 72 see also struggle for existence complexity, economic systems 14, 32, 108, 153, 203 compulsive shopping 116 see also consumerism Conference of the Parties to the UN Framework Convention on Climate Change (CoP21) 19 conflicted state 197, 201, 209 connectedness, global 91, 227 conspicuous consumption 115 see also language of goods consumer goods see language of goods; material goods consumer sovereignty 196, 198 consumerism 4, 21, 22, 103–4, 113–16; capitalism 105–13, 196; choice 196; engine of growth 104, 108, 120, 161; existential fear of death 69, 212–15; financial crisis 24, 28, 39, 103; moving beyond 216–18; novelty and anxiety 116–17; post-growth economy 166–7; role of the state 192–3, 196, 199, 202–5; status 211; tragedy of 140 see also demand; materialism contemplative dimensions, simplicity 127 contraction and convergence model 206–7 coordinated market economies 27, 106 Copenhagen Accord (2009) 19 copper, commodity prices 13 corporations/big business 106–7 corruption 9, 131, 186, 187, 189 The Cost Disease: Why Computers get Cheaper and Health Care Doesn’t (Baumol) 171, 172 Costa Rica 74, 74, 76 countercyclical spending 181–2, 182, 188 crafts/craft economies 147, 149, 170, 171 creative destruction 104, 112, 113, 116–17 creativity 8, 79; and consumerism 113, 116; future visions 142, 144, 147, 158, 171, 200, 220 see also novelty/innovation credit, private: deflationary forces 44; deregulation 36; financial crisis 26, 27, 27–31, 34, 36, 41; financial system weaknesses 32–3, 37; growth imperative hypothesis 178–80; mortgage loans 28–9; reforms in financial system 157; spending vs. saving behaviour of ordinary people 118–19; and stimulation of growth 36 see also debt (public) credit unions 155–6 crises: of commitment 192–5; financial see financial crisis critical boundaries, biophysical see limits (ecological) Csikszentmihalyi, Mihalyi 127 Cuba: child mortality 75; life expectancy 74, 77, 78, 78; response to economic hardship 79–80; revolution 56; schooling 76 Cushman, Philip 116 Dalai Lama 49, 52 Daly, Herman xxxii, 54, 55, 160, 163, 165 Darwin, Charles 132–3 Das Kapital (Marx) 225 Davidson, Richard 49 Davos World Economic Forum 46 Dawkins, Richard 134–5 de Mandeville, Bernard 131–2, 157 death, denial of 69, 104, 115, 212–15 debt, public-sector 81; deflationary forces 44; economic stability 81; financial crisis 24, 26–32, 27, 37, 41, 42, 81; financial systems 28–32, 153–7; money creation 178–9; post-growth economy 178–9, 223 Debt: The First Five Thousand Years (Graeber) 28 decoupling xix, xx, xxxvii, 21, 84–7; dilemma of growth 211; efficiency measures 84, 86, 87, 88, 95, 104; green growth 163, 163–5; historical perspectives 87–96, 89, 90, 92, 94, 95; need for new economic model 101–2; relationship between relative and absolute 96–101 deep emission and resource cuts 99, 102 deficit spending 41, 43 deflationary forces, post-financial crisis 43–7, 45 degrowth movement 161–3, 177 demand 104, 113–16, 166–7; post-financial crisis 44–5; post-growth economy 162, 164, 166–9, 171–2, 174–5 dematerialisation 102, 143 democratisation, and wellbeing 59 deposit guarantees 35 deregulation 27, 34, 36, 196 desire, role in consumer behaviour 68, 69, 70, 114 destructive materialism 104, 112, 113, 116–17 Deutsche Bank 41 devaluation of currency 30, 45 Dichter, Ernest 114 digital economy 44, 219–20 dilemma of growth xxxi, 66–7, 104, 210; basic entitlements 72–9, 74, 75, 76, 78; decoupling 85, 87, 164; degrowth movement 160–3; economic stability 79–83, 174–6; material abundance 67–72; moving beyond 165, 166, 183–4; role of the state 198 diminishing marginal utility: alternative hedonism 125, 126; wellbeing 51–2, 57, 60, 73, 75–6, 79 disposable incomes 27, 67, 118 distributed ownership 223 Dittmar, Helga 126 domestic debt see credit dopamine 68 Dordogne, mindfulness community 128 double movement of society 198 Douglas, Mary 70 Douthwaite, Richard 178 downshifting 128 driving analogy, managing change 16–17 durability, consumer goods 113, 204, 220 dynamic systems, managing change 16–17 Eastern Europe 76, 122 Easterlin, Richard 56, 57, 59; paradox 56, 58 eco-villages, Findhorn community 128 ecological investment 101, 166–70, 220 see also investment ecological limits see limits (ecological) ecological (ecosystem) services 152, 169, 223 The Ecology of Money (Douthwaite) 178 economic growth see growth economic models see alternatives; business-as-usual model; financial systems; future visions; mathematical models; post-growth macroeconomics economic output see efficiency; productivity ‘Economic possibilities for our grandchildren’ (Keynes) 145 economic stability 22, 154, 157, 161; financial system weaknesses 34, 35, 36, 180; growth 21, 24, 67, 79–83, 174–6, 210; post-growth economy 161–3, 165, 174–6, 208, 219; role of the state 181–3, 195, 198, 199 economic structures: post-growth economy 227; financial system reforms 224; role of the state 205; selfishness 137 see also business-as-usual model; financial systems ecosystem functioning 62–3 see also limits (ecological) ecosystem services 152, 169, 223 Ecuador xxxi, 6 education: Baumol’s cost disease 171, 172; and income 67, 76, 76; investment in 150–1; role of the state 193 see also basic entitlements efficiency measures 84, 86–8, 95, 104, 109–11, 142–3; energy 41, 109–11; growth 111, 211; investment 109, 151; of scale 104 see also labour productivity; relative decoupling Ehrlich, Paul 13, 96 elasticity of substitution, labour and capital 177–8 electricity grid 41, 151, 156 see also energy Elgin, Duane 127 Ellen MacArthur Foundation 144 emissions see greenhouse gas emissions employee ownership 223 employment intensity vs. carbon dioxide emissions 148 see also labour productivity empty self 116, 117 see also consumerism ends above means 159 energy return on investment (EROI) 12, 169 energy services/systems 142: efficiency 41, 109–11; inputs/intensity 87–8, 151; investment 41, 109–10, 151–2; renewable xxxv, 41, 168–9 engine of growth 145; consumerism 104, 108, 161; services 143, 170–4 see also circular flow of the economy enough is enough see limits enterprise as service 140, 141–4, 158 see also novelty/innovation entitlements see basic entitlements entrepreneur as visionary 112 entrepreneurial state 220 Environmental Assessment Agency, Netherlands 62 environmental quality 12 see also pollution environmentalism 9 EROI (energy return on investment) 12, 169 Essay on the Principle of Population (Malthus) 9–11, 132–3 evolutionary map, human heart 136, 136 evolutionary theory 132–3; common good 193; post-growth economy 226; psychology 133–5; selfishness and altruism 196 exchange values 55, 61 see also gross domestic product existential fear of death 69, 104, 115, 212–15 exponential expansion 1, 11, 20–1, 210 see also growth external debt 32, 42 extinctions/biodiversity loss 17, 47, 62, 101 Eyres, Harry 215 Fable of the Bees (de Mandeville) 131–2 factor inputs 109–10 see also capital; labour; resource use fast food 128 fatalism 186 FCCC (Framework Convention on Climate Change) 92 fear of death, existential 69, 104, 115, 212–15 feedback loops 16–17 financial crisis (2008) 6, 23–5, 32, 77, 103; causes and culpability 25–8; financial system weaknesses 32–7, 108; Keynesianism 37–43, 188; nationalisation of financial sector 188; need for financial reforms 175; role of debt 24, 26–32, 27, 81, 179; role of state 191; slowing of growth 43–7, 45; spending vs. saving behaviour of ordinary people 118–21, 119; types/definitions of capitalism 106; youth unemployment 144–5 financial systems: common pool resources 192; debt-based/role of debt 28–32, 153–7; post-growth economy 179, 208; systemic weaknesses 32–7; and wellbeing 47 see also banking system; business-as-usual model; financial crisis; reform Findhorn community 128 finite limits of planet see limits (ecological) Fisher, Irving 156, 157 fishing rights 22 flourishing see capabilities for flourishing; limits; wellbeing flow states 127 Flynt, Larry 40 food 67 see also basic entitlements Ford, Henry 154 forestry/forests 22, 192 Forrester, Jay 11 fossil fuels 11, 20 see also oil Foucault, Michel 197 fracking 14, 15 Framework Convention on Climate Change (FCCC) 92 France: GDP per capita 58, 75, 76; inequality 206; life-expectancy 74; mindfulness community 128; working hours 145 free market 106: financial crisis 35, 36, 37, 38, 39; ideological controversy/conflict 186–7, 188 freedom/autonomy: vs. common good 193–4; consumer 22, 68–9; language of goods 212; personal choices for improvement 216–18; wellbeing 49, 59, 62 see also individualism Friedman, Benjamin 176 Friedman, Milton 36, 156, 157 frugality 118–20, 127–9, 215–16 fun (more fun with less stuff) 129, 217 future visions 2, 158, 217–21; community banking 155–6; dilemma of growth 211; enterprise as service 140, 141–4, 147–8, 158; entrepreneur as visionary 112; financial crisis as opportunity 25; and growth 165–6; investment 22, 101–2, 140, 149–53, 158, 169, 208; money as social good 140, 153–7, 158; processes of change 185; role of the state 198, 199, 203; timescales for change 16–17; work as participation 140, 144–9, 148, 158 see also alternatives; post-growth macroeconomics; reform Gandhi, Mahatma 127 GDP see gross domestic product gene, selfish 134–5 Genuine Progress Indicator (GPI) 54, 54 geographical community 122–3 Germany xxxi; Federal Ministry of Finance 224–5; inequality 206; relative income effect 58; trade balance 31; work as participation 146 Glass Steagal Act 35 Global Commodity Price Index (1992–2015) 13 global corporations 106–7 global economy 98: culture 70; decoupling 86–8, 91, 93–5, 95, 97, 98, 100; exponential expansion 20–1; inequality 4, 5–6; interconnectedness 91, 227; post-financial crisis slowing of growth 45 Global Research report (HSBC) 41 global warming see climate change Godley, Wynne 179 Goldman Sachs 37 good life 3, 6; moral dimension 63, 104; wellbeing 48, 50 goods see language of goods; material goods; symbolic role of goods Gordon, Robert 44 governance 22, 185–6; commons 190–2; crisis of commitment 192–5, 197; economic stability 34, 35; establishing limits 200–8, 206; growth 195–9; ideological controversy/conflict 186–9; moving towards change 197–200, 220–1; post-growth economy 181–3, 182; power of corporations 106; for prosperity 209; signals 130 government as household metaphor 30, 42 governmentality 197, 198 GPI (Genuine Progress Indicator) 54, 54 Graeber, David 28 Gramm-Leach-Bliley Act 35 Great Depression 39–40 Greece: austerity xxxiii–xxxiv, xxxvii, 43; energy inputs 88; financial crisis 28, 30, 31, 77; life expectancy 74; schooling 76; relative income effect 58; youth unemployment 144 Green Economy initiative 41 green: growth xxxvii, 18, 85, 153, 166, 170; investment 41 Green New Deal, UNEP 40–1, 152, 188 greenhouse gas emissions 18, 85, 86, 91, 92; absolute decoupling 89–92, 90, 92, 98–101, 100; dilemma of growth 210–11; vs. employment intensity 148; future visions 142, 151, 201–2, 220; Kyoto Protocol 18, 90; reduction targets 19–20; relative decoupling 87, 88, 89, 93, 98–101, 100 see also climate change Greenspan, Alan 35 gross domestic product (GDP) per capita 3–5, 15, 54; climate change 18; decoupling 85, 93, 94; financial crisis 27, 28, 32; green growth 163–5; life expectancy 74, 75, 78; as measure of prosperity 3–4, 5, 53–5, 54, 60–1; post-financial crisis 43, 44; post-growth economy 207; schooling 76; wellbeing 55–61, 58 see also income growth xxxvii; capitalism 105; credit 36, 178–80; decoupling 85, 96–101; economic stability 21, 24, 67, 80, 210; financial crisis 37, 38; future visions 209, 223, 224; inequality 177; labour productivity 111; moving beyond 165, 166; novelty 112; ownership 105; post-financial crisis slowing 43–7, 45; prosperity as 3–7, 23, 66; role of the state 195–9; sustainable investment 166–70; wellbeing 59–60; as zero sum game 57 see also dilemma of growth; engine of growth; green growth; limits to growth; post-growth macroeconomy growth imperative hypothesis 37, 174, 175, 177–80, 183 habit formation, acquisition as 68 Hall, Peter 106, 188 Hamilton, William 134 Hansen, James 17 happiness see wellbeing/happiness Happiness (Layard) 55 Hardin, Garrett 190–1 Harvey, David 189, 192 Hayek, Friedrich 187, 189, 191 health: Baumol’s cost disease 171, 172; inequality 72–3, 205–6, 206; investment 150–1; and material abundance 67, 68; personal choices for improvement 217; response to economic hardship 80; role of the state 193 see also basic entitlements Heath, Edward 66, 82 hedonism 120, 137, 196; alternatives 125–6 Hirsch, Fred xxxii–xxxiii historical perspectives: absolute decoupling 86, 89–96, 90, 92, 94, 95; relative decoupling 86, 87–9, 89 Holdren, John 96 holistic solutions, post-growth economy 175 household finances: house purchases 28–9; spending vs. saving behaviour 118–20, 119 see also credit household metaphor, government as 30, 42 HSBC Global Research report 41 human capabilities see capabilities for flourishing human happiness see wellbeing/happiness human nature/psyche 3, 132–5, 138; acquisition 68; alternative hedonism 125; evolutionary map of human heart 136, 136; intrinsic values 131; meaning/purpose 49–50; novelty/innovation 116; selfishness vs. altruism 133–8; short-termism/living for today 194; spending vs. saving behaviour 34, 118–21, 119; symbolic role of goods 69 see also intrinsic values human rights see basic entitlements humanitarian perspectives: financial crisis 24; growth 79; inequality 5, 52, 53 see also intrinsic values hyperbolic discounting 194 hyperindividualism 226 see also individualism hyper-materialisation 140, 157 I Ching (Chinese Book of Changes) 7 Iceland: financial crisis 28; life expectancy 74, 75; relative income effect 56; response to economic hardship 79–80; schooling 76; sovereign money system 157 identity construction 52, 69, 115, 116, 212, 219 IEA (International Energy Agency) 14, 152 IMF (International Monetary Fund) 45, 156–7 immaterial goods 139–40 see also intrinsic values; meaning/purpose immortality, symbolic role of goods 69, 104, 115, 212–14 inclusive growth see inequality; smart growth income 3, 4, 5, 66, 124; basic entitlements 72–9, 74, 75, 76, 78; child mortality 74–5, 75; decoupling 96; economic stability 82; education 76; life expectancy 72, 73, 74, 77–9, 78; poor nations 67; relative income effect 55–61, 58, 71, 72; tax revenues 81 see also gross domestic product INDCs (intended nationally determined commitments) 19 India: decoupling 99; growth 99; life expectancy 74, 75; philosophy 127; pursuit of western lifestyles 70; savings 27; schooling 76 indicators of environmental quality 96 see also biodiversity; greenhouse gas emissions; pollution; resource use individualism 136, 226; progressive state 194–7, 199, 200, 203, 207 see also freedom/autonomy industrial development 12 see also technological advances inequality 22, 67; basic entitlements 72; child mortality 75, 75; credible alternatives 219, 224; deflationary forces 44; fatalism 186; financial crisis 24; global 4, 5–6, 99, 100; financial system weaknesses 32–3; post-growth economy 174, 176–8; role of the state 198, 205–7, 206; selfishness vs. altruism 137; symbolic role of goods 71; wellbeing 47, 104 see also poverty infant mortality rates 72, 75 inflation 26, 30, 110, 157, 167 infrastructure, civic 150–1 Inglehart, Ronald 58, 59 innovation see novelty/innovation; technological advances inputs 80–1 see also capital; labour productivity; resource use Inside Job documentary film 26 instant gratification 50, 61 instinctive acquisition 68 Institute for Fiscal Studies 81 Institute for Local Self-Reliance 204 institutional structures 130 see also economic structures; governance intended nationally determined commitments (INDCs) 19 intensity factor, technological 96, 97 see also technological advances intentional communities 127–9 interconnectedness, global 91, 227 interest payments/rates 39, 43, 110; financial crisis 29, 30, 33, 39; post-growth economy 178–80 see also credit; debt Intergovernmental Panel on Climate Change (IPCC) 18, 19, 201–2 International Energy Agency (IEA) 14, 152 International Monetary Fund (IMF) 45, 156–7 intrinsic values 126–31, 135–6, 212; role of the state 199, 200 see also belonging; community; meaning/purpose; simplicity/frugality investment 107–10, 108; ecological/sustainable 101, 152, 153, 166–70, 220; and innovation 112; loans 29; future visions 22, 101–2, 140, 149–53, 158, 169, 208, 220; and savings 108; social 155, 156, 189, 193, 208, 220–3 invisible hand metaphor 132, 133, 187 IPAT equation, relative and absolute decoupling 96 IPCC (Intergovernmental Panel on Climate Change) 18, 19, 201–2 Ireland 28; inequality 206; life expectancy 74, 75; schooling 76; wellbeing 58 iron cage of consumerism see consumerism iron ore 94 James, Oliver 205 James, William 68 Japan: equality 206; financial crisis 27, 45; life expectancy 74, 76, 79; relative income effect 56, 58; resource use 93; response to economic hardship 79–80 Jefferson, Thomas 185 Jobs, Steve 210 Johnson, Boris 120–1 Kahneman, Daniel 60 Kasser, Tim 126 keeping up with the Joneses 115, 116, 117 see also relative income effect Kennedy, Robert 48, 53 Keynes, John Maynard/Keynesianism 23, 34, 120, 174, 181–3, 187–8; financial crisis 37–43; financial system reforms 157; part-time working 145; steady state economy 159, 162 King, Alexander 11 Krugman, Paul 39, 85, 86, 102 Kyoto Protocol (1992) 18, 90 labour: child 62, 154; costs 110; division of 158; elasticity of substitution 177, 178; intensity 109, 148, 208; mobility 123; production inputs 80, 109; structures of capitalism 107 labour productivity 80–1, 109–11; Baumol’s cost disease 170–2; and economic growth 111; future visions 220, 224; investment as commitment 150; need for investment 109; post-growth economy 175, 208; services as engine of growth 170; sustainable investment 166, 170; trade off with resource use 110; work-sharing 145, 146, 147, 148, 148, 149 Lahr, Christin 224–5 laissez-faire capitalism 187, 195, 196 see also free market Lakoff, George 30 language of goods 212; material footprint of 139–40; signalling of social status 71; and wellbeing 124 see also consumerism; material goods; symbolic role of goods Layard, Richard 55 leadership, political 199 see also governance Lebow, Victor 120 Lehman Brothers, bankruptcy 23, 25, 26, 118 leisure economy 204 liberal market economies 106, 107; financial crisis 27, 35–6 life expectancy: and income 72, 73, 74, 77–9, 78; inequality 206; response to economic hardship 80 see also basic entitlements life-satisfaction 73; inequality 205; relative income effect 55–61, 58 see also wellbeing/happiness limits, ecological 3, 4, 7, 11, 12, 20–2; climate change 17–20; decoupling 86; financial crisis 23–4; growth 21, 165, 210; post-growth economy 201–2, 226–7; role of the state 198, 200–2, 206–7; and social boundaries 141; wellbeing 62–63, 185 limits, flourishing within 61–5, 185; alternative hedonism 125–6; intrinsic values 127–31; moving towards 215, 218, 219, 221; paradox of materialism 121–23; prosperity 67–72, 113, 212; role of the state 201–2, 205; selfishness 131–8; shame 123–4; spending vs. saving behaviour 118–21, 119 see also sustainable prosperity limits to growth: confronting 7–8; exceeding 20–2; wellbeing 62–3 Limits to Growth report (Club of Rome) xxxii, xxxiii, 8, 11–16 ‘The Living Standard’ essay (Sen) 50, 123–4 living standards 82 see also prosperity Lloyd, William Forster 190 loans 154; community investment 155–6; financial system weaknesses 34 see also credit; debt London School of Economics 25 loneliness 123, 137 see also alienation long-term: investments 222; social good 219 long-term wellbeing vs. short-term pleasures 194, 197 longevity see life expectancy love 212 see also intrinsic values low-carbon transition 19, 220 LowGrow model for the Canadian economy 175 MacArthur Foundation 144 McCracken, Grant 115 Malthus, Thomas Robert 9–11, 132–3, 190 market economies: coordinated 27, 106; liberal 27, 35–6, 106, 107 market liberalism 106, 107; financial crisis 27, 35–6; wellbeing 47 marketing 140, 203–4 Marmot review, health inequality in the UK 72 Marx, Karl/Marxism 9, 189, 192, 225 Massachusetts Institute of Technology (MIT) 11, 12, 15 material abundance see opulence material goods 68–9; identity 52; language of 139–40; and wellbeing 47, 48, 49, 51, 65, 126 see also symbolic role of goods material inputs see resource use materialism: and fear of death 69, 104, 115, 212–15; and intrinsic values 127–31; paradox of 121–3; price of 126; and religion 115; values 126, 135–6 see also consumerism mathematical models/simulations 132; austerity policies 181; countercyclical spending 181–2, 182; decoupling 84, 91, 96–101; inequality 176–8; post-growth economy 164; stock-flow consistent 179–80 Mawdsley, Emma 70 Mazzucato, Mariana 193, 220 MDG (Millennium Development Goals) 74–5 Meadows, Dennis and Donella 11, 12, 15, 16 meaning/purpose 2, 8, 22; beyond material goods 212–16; consumerism 69, 203, 215; intrinsic values 127–31; moving towards 218–20; wellbeing 49, 52, 60, 121–2; work 144, 146 see also intrinsic values means and ends 159 mental health: inequality 206; meaning/purpose 213 metaphors: government as household 30, 42; invisible hand 132, 133, 187 Middle East, energy inputs 88 Miliband, Ed 199 Mill, John Stuart 125, 159, 160, 174 Millennium Development Goals (MDG) 74–5 mindfulness 128 Minsky, Hyman 34, 35, 40, 182, 208 MIT (Massachusetts Institute of Technology) 11, 12, 15 mixed economies 106 mobility of labour, loneliness index 123 Monbiot, George 84, 85, 86, 91 money: creation 154, 157, 178–9; and prosperity 5; as social good 140, 153–7, 158 see also financial systems monopoly power, corporations 106–7 The Moral Consequences of Economic Growth (Friedman) 82, 176 moral dimensions, good life 63 see also intrinsic values moral hazards, separation of risk from reward 35 ‘more fun with less stuff’ 129, 217 mortality fears 69, 104, 115, 212–15 mortality rates, and income 74, 74–6, 75 mortgage loans 28–9, 35 multinational corporations 106–7 national debt see debt, public-sector nationalisation 191; financial crisis 38, 188 natural selection 132–3 see also struggle for existence nature, rights of 6–7 negative emissions 98–9 negative feedback loops 16–17 Netherlands 58, 62, 206, 207 neuroscientific perspectives: flourishing 68, 69; human behaviour 134 New Climate Economy report Better Growth, Better Climate 18 New Deal, USA 39 New Economics Foundation 175 nickel, commodity prices 13 9/11 terrorist attacks (2001) 121 Nordhaus, William 171, 172–3 North America 128, 155 see also Canada; United States Norway: advertising 204; inequality 206; investment as commitment 151–2; life expectancy 74; relative income effect 58; schooling 76 novelty/innovation 104, 108, 113; and anxiety 116–17, 124, 211; crisis of commitment 195; dilemma of growth 211; human psyche 135–6, 136, 137; investment 150, 166, 168; post-growth economy 226; role of the state 196, 197, 199; as service 140, 141–4, 158; symbolic role of goods 114–16, 213 see also technological advances Nudge: Improving Decisions about Health, Wealth, and Happiness (Thaler and Sunstein) 194–5 Nussbaum, Martha 64 nutrient loading, critical boundaries 17 nutrition 67 see also basic entitlements obesity 72, 78, 206 obsolescence, built in 113, 204, 220 oceans: acidification 17; common pool resources 192 Offer, Avner 57, 61, 71, 194, 195 oil prices 14, 21; decoupling 88; financial crisis 26; resource constraints 15 oligarchic capitalism 106, 107 opulence 50–1, 52, 67–72 original sin 9, 131 Ostrom, Elinor and Vincent 190, 191 output see efficiency; gross domestic product; productivity ownership: and expansion 105; private vs. public 9, 105, 191, 219, 223; new models 223–4; types/definitions of capitalism 105–7 Oxfam 141 paradoxes: materialism 121–3; thrift 120 Paris Agreement 19, 101, 201 participation in society 61, 114, 122, 129, 137; future visions 200, 205, 218, 219, 225; work as 140–9, 148, 157, 158 see also social inclusion part-time working 145, 146, 149, 175 Peccei, Aurelio 11 Perez, Carlota 112 performing arts, Baumol’s cost disease 171–2 personal choice 216–18 see also freedom/autonomy personal property 189, 191 Pickett, Kate 71, 205–6 Piketty, Thomas 33, 176, 177 planetary boundaries see limits (ecological) planning for change 17 pleasure 60–1 see also wellbeing/happiness Plum Village mindfulness community 128 Polanyi, Karl 198 policy see governance political leadership 199 see also governance Political Economy Research Institute, University of Massachusetts 41 pollution 12, 21, 53, 95–6, 143 polycentric governance 191, 192 Poor Laws 10 poor nations see poverty population increase 3, 12, 63, 96, 97, 190; Malthus on 9–11, 132–3 porn industry 40 Portugal 28, 58, 88, 206 positional competition 55–61, 58, 71, 72 see also social comparison positive feedback loops 16–17 post-growth capitalism 224 post-growth macroeconomics 159–60, 183–4, 221; credit 178–80; degrowth movement 161–3; economic stability 174–6; green growth 163–5; inequality 176–8; role of state 181–3, 182, 200–8, 206; services 170–4; sustainable investment 166–70 see also alternatives; future visions; reform poverty 4, 5–6, 216; basic entitlements 72; flourishing within limits 212; life expectancy 74, 74; need for new economic model 101; symbolic role of goods 70; wellbeing 48, 59–60, 61, 67 see also inequality; relative income effect power politics 200 predator–prey analogy 103–4, 117 private credit see credit private vs. public: common good 208; ownership 9, 105, 191, 219, 223; salaries 130 privatisation 191, 219 product lifetimes, obsolescence 113, 204, 220 production: inputs 80–1; ownership 191, 219, 223 productivity: investment 109, 167, 168, 169; post-growth economy 224; services as engine of growth 171, 172, 173; targets 147; trap 175 see also efficiency measures; labour productivity; resource productivity profits: definitions of capitalism 105; dilemma of growth 211; efficiency measures 87; investment 109; motive 104; post-growth economy 224; and wages 175–8 progress 2, 50–5, 54 see also novelty/innovation; technological advances progressive sector, Baumol’s cost disease 171 progressive state 185, 220–2; contested 186–9; countering consumerism 202–5; equality measures 205–7, 206; governance of the commons 190–2; governance as commitment device 192–5; governmentality of growth 195–7; limit-setting 201–2; moving towards 197–200; post-growth macroeconomics 207–8, 224; prosperity 209 prosocial behaviour 198 see also social contract prosperity 1–3, 22, 121; capabilities for flourishing 61–5; and growth 3–7, 23, 66, 80, 160; and income 3–4, 5, 66–7; limits of 67–72, 113, 212; materialistic vision 137; progress measures 50–5, 54; relative income effect 55–61, 58, 71, 72; social perspectives 2, 22, 48–9; state roles 209 see also capabilities for flourishing; post-growth macroeconomics; sustainable prosperity; wellbeing prudence, financial 120, 195, 221; financial crisis 33, 34, 35 public sector spending: austerity policies 189; countercyclical spending strategy 181–2, 182; welfare economy 169 public services/amenities: common pool resources 190–2, 198, 199; future visions 204, 218–20; investment 155–6, 204; ownership 223 see also private vs. public; service-based economies public transport 41, 129, 193, 217 purpose see meaning/purpose Putnam, Robert 122 psyche, human see human nature/psyche quality, environmental 12 see also pollution quality of life: enterprise as service 142; inequality 206; sustainable 128 quality to throughput ratios 113 quantitative easing 43 Queen Elizabeth II 25, 32, 34, 37 quiet revolution 127–31 Raworth, Kate 141 Reagan, Ronald 8 rebound phenomenon 111 recession 23–4, 28, 81, 161–3 see also financial crisis recreation/leisure industries 143 recycling 129 redistribution of wealth 52 see also inequality reforms 182–3, 222; economic structures 224; and financial crisis 103; financial systems 156–8, 180 see also alternatives; future visions; post-growth economy relative decoupling 84–5, 86; historical perspectives 87–9, 89; relationship with absolute decoupling 96–101, 111 relative income effect 55–61, 58, 71, 72 see also social comparison religious perspectives 9–10, 214–15; materialism as alternative to religion 115; original sin 9, 131; wellbeing 48, 49 see also existential fear of death renewable energy xxxv, 41, 168–169 repair/renovation 172, 220 resource constraints 3, 7, 8, 11–15, 47 resource productivity 110, 151, 168, 169, 220 resource use: conflicts 22; credible alternatives 101, 220; decoupling 84–9, 92–5, 94, 95; and economic output 142–4; investment 151, 153, 168, 169; trade off with labour costs 110 retail therapy 115 see also consumerism; shopping revenues, state 222–3 see also taxation revolution 186 see also social stability rights: environment/nature 6–7; human see basic entitlements risk, financial 24, 25, 33, 35 The Road to Serfdom (Hayek) 187 Robinson, Edward 132 Robinson, Joan 159 Rockström, Johan 17, 165 romantic movement 9–10 Roosevelt, Franklin D. 35, 39 Rousseau, Jean Jacques 9, 131 Russia 74, 76, 77–80, 78, 122 sacred canopy 214, 215 salaries: private vs. public sector 130, 171; and profits 175–8 Sandel, Michael 150, 164, 218 São Paulo, Clean City Law 204 Sardar, Zia 49, 50 Sarkozy, Nicolas xxxi, 53 savage state, romantic movement 9–10 savings 26–7, 28, 107–9, 108; investment 149; ratios 34, 118–20, 119 scale, efficiencies of 104 Scandinavia 27, 122, 204 scarcity, managing change 16–17 Schumpeter, Joseph 112 Schwartz, Shalom 135–6, 136 schooling see education The Science of Desire (Dichter) 114 secular stagnation 43–7, 45, 173 securitisation, mortgage loans 35 security: moving towards 219; and wellbeing 48, 61 self-development 204 self-expression see identity construction self-transcending behaviours see transcendence The Selfish Gene (Dawkins) 134–5 selfishness 133–8, 196 Sen, Amartya 50, 52, 61–2, 123–4 service concept/servicization 140–4, 147–8, 148, 158 service-based economies 219; engine of growth 170–4; substitution between labour and capital 178; sustainable investment 169–70 see also public services SFC (stock-flow consistent) economic models 179–80 shame 123–4 shared endeavours, post-growth economy 227 Sheldon, Solomon 214 shelter see basic entitlements shopping 115, 116, 130 see also consumerism short-termism/living for today 194, 197, 200 signals: sent out by society 130, 193, 198, 203, 207; social status 71 see also language of goods Simon, Julian 13 simplicity/simple life 118–20, 127–9, 215–16 simulations see mathematical models/simulations slow: capital 170; movement 128 smart growth 85, 163–5 see also green growth Smith, Adam 51, 106–7, 123, 132, 187 social assets 220 social boundaries (minimum standards) 141 see also basic entitlements social care 150–1 see also caring professions social comparison 115, 116, 117 see also relative income effect social contract 194, 198, 199, 200 social inclusion 48, 69–71, 114, 212 see also participation in society social investment 155, 156, 189, 193, 208, 220–3 social justice 198 see also inequality social logic of consumerism 114–16, 204 social stability 24, 26, 80, 145, 186, 196, 205 see also alienation social status see status social structures 80, 129, 130, 137, 196, 200, 203 social tolerance, and wellbeing 59, 60 social unrest see social stability social wage 40 social welfare: financial reforms 182–3; public sector spending 169 socialism 223 Sociobiology (Wilson) 134 soil integrity 220 Solon, quotation 47, 49, 71 Soper, Kate 125–6 Soros, George 36 Soskice, David 106 Soviet Union, former 74, 76, 77–80, 78, 122 Spain 28, 58, 144, 206 SPEAR organization, responsible investment 155 species loss/extinctions 17, 47, 62, 101 speculation 93, 99, 149, 150, 154, 158, 170; economic stability 180; financial crisis 26, 33, 35; short-term profiteering 150; spending: behaviour of ordinary people 34, 119, 120–1; countercyclical 181–2, 182, 188; economic stability 81; as way out of recession 41, 44, 119, 120–1; and work cycle 125 The Spirit Level (Wilkinson and Pickett) 71, 205–6 spiritual perspectives 117, 127, 128, 214 stability see economic stability; social stability stagflation 26 stagnant sector, Baumol’s cost disease 171 stagnation: economic stability 81–2; labour productivity 145; post-financial crisis 43–7, 45 see also recession state capitalism, types/definitions of capitalism 106 state revenues, from social investment 222–3 see also taxation state roles see governance status 207, 209, 211; and possessions 69, 71, 114, 115, 117 see also language of goods; symbolic role of goods Steady State Economics (Daly) xxxii steady state economies 82, 159, 160, 174, 180 see also post-growth macroeconomics Stern, Nicholas 17–18 stewardship: role of the state 200; sustainable investment 168 Stiglitz, Joseph 53 stock-flow consistent (SFC) economic models 179–80 Stockholm Resilience Centre 17, 201 stranded assets 167–8 see also ownership structures of capitalism see economic structures struggle for existence 8–11, 125, 132–3 Stuckler, David 43 stuff see language of goods; material goods; symbolic role of goods subjective wellbeing (SWB) 49, 58, 58–9, 71, 122, 129 see also wellbeing/happiness subprime lending 26 substitution, between labour and capital 177–178 suffering, struggle for existence 10 suicide 43, 52, 77 Sukdhev, Pavan 41 sulphur dioxide pollution 95–6 Summers, Larry 36 Sunstein, Cass 194 sustainability xxv–xxvi, 102, 104, 126; financial systems 154–5; innovation 226; investment 101, 152, 153, 166–70, 220; resource constraints 12; role of the state 198, 203, 207 see also sustainable prosperity Sustainable Development Strategy, UK 198 sustainable growth see green growth sustainable prosperity 210–12; creating credible alternatives 219–21; finding meaning beyond material commodities 212–16; implications for capitalism 222–5; personal choices for improvement 216–18; and utopianism 225–7 see also limits (flourishing within) SWB see subjective wellbeing; wellbeing/happiness Switzerland 11, 46, 157; citizen’s income 207; income relative to wellbeing 58; inequality 206; life expectancy 74, 75 symbolic role of goods 69, 70–1; existential fear of death 212–16; governance 203; innovation/novelty 114–16; material footprints 139–40; paradox of materialism 121–2 see also language of goods; material goods system dynamics model 11–12, 15 tar sands/oil shales 15 taxation: capital 177; income 81; inequality 206; post-growth economy 222 technological advances 12–13, 15; decoupling 85, 86, 87, 96–8, 100–3, 164–5; dilemma of growth 211; economic stability 80; population increase 10–11; role of state 193, 220 see also novelty/innovation Teilhard de Chardin, Pierre 8 terror management, and consumption 69, 104, 115, 212–15 terrorist attacks (9/11) 121 Thailand, Buddhist monasteries 128 Thaler, Richard 194 theatre, Baumol’s cost disease 171–2 theology see religious perspectives theory of evolution 132–3 thermodynamics, laws of 112, 164 Thich Nhat Hanh 128 thrift 118–20, 127–9, 215–16 throwaway society 113, 172, 204 timescales for change 16–17 tin, commodity prices 13 Today programme interview xxix, xxviii Totnes, transition movement 128–9 Towards a Green Economy report (UNEP) 152–3 Townsend, Peter 48, 61 trade balance 31 trading standards 204 tradition 135–6, 136, 226 ‘Tragedy of the commons’ (Hardin) 190–1 transcendence 214 see also altruism; meaning/purpose; spiritual perspectives transition movement, Totnes 128–9 Triodos Bank 156, 165 Trumpf (machine-tool makers) Germany 146 trust, loss of see alienation tungsten, commodity prices 13 Turkey 58, 88 Turner, Adair 157 21st Conference of the Parties to the UN Framework Convention on Climate Change (2015) 19 UBS (Swiss bank) 46 Ubuntu, African philosophy 227 unemployment 77; consumer goods 215; degrowth movement 162; financial crisis 24, 40, 41, 43; Great Depression 39–40; and growth 38; labour productivity 80–1; post-growth economy 174, 175, 183, 208, 219; work as participation 144–6 United Kingdom: Green New Deal group 152; greenhouse gas emissions 92; labour productivity 173; resource inputs 93; Sustainable Development Strategy 198 United Nations: Development Programme 6; Environment Programme 18, 152–3; Green Economy initiative 41 United States: credit unions 155–6; debt 27, 31–32; decoupling 88; greenhouse gas emissions 90–1; subprime lending 26; Works Progress Administration 39 universal basic income 221 see also citizen’s income University of Massachusetts, Political Economy Research Institute 41 utilitarianism/utility, wellbeing 50, 52–3, 55, 60 utopianism 8, 38, 125, 179; post-growth economy 225–7 values, materialistic 126, 135–6 see also intrinsic values Veblen, Thorstein 115 Victor, Peter xxxviii, 146, 175, 177, 180 vision of progress see future visions; post-growth economy volatility, commodity prices 14, 21 wages: and profits 175–8; private vs. public sector 130, 171 walking, personal choices for improvement 217 water use 22 Wealth of Nations, An Inquiry into the Nature and Causes (Smith) 123, 132 wealth redistribution 52 see also inequality Weber, Axel 46 welfare policies: financial reforms 182–3; public sector spending 169 welfare of livestock 220 wellbeing/happiness 47–50, 53, 121–2, 124; collective 209; consumer goods 4, 21, 22, 126; growth 6, 165, 211; intrinsic values 126, 129; investment 150; novelty/innovation 117; opulence 50–2, 67–72; personal choices for improvement 217; planetary boundaries 141; relative income effect 55–61, 58, 71, 72; simplicity 129; utilitarianism 50, 52–3, 55, 60 see also capabilities for flourishing western lifestyles 70, 210 White, William 46 Whybrow, Peter 68 Wilhelm, Richard 7 Wilkinson, Richard 71, 205–6 Williams, Tennessee 213 Wilson, Edward 134 wisdom traditions 48, 49, 63, 128, 213–14 work: as participation 140–9, 148, 157, 158; and spend cycle 125; sharing 145, 146, 149, 175 Works Progress Administration, USA 39 World Bank 160 World Values Survey 58 youth unemployment, financial crisis 144–5 zero sum game, growth as 57, 71


pages: 809 words: 237,921

The Narrow Corridor: States, Societies, and the Fate of Liberty by Daron Acemoglu, James A. Robinson

Affordable Care Act / Obamacare, agricultural Revolution, AltaVista, Andrei Shleifer, bank run, Berlin Wall, British Empire, California gold rush, central bank independence, centre right, collateralized debt obligation, collective bargaining, colonial rule, Computer Numeric Control, conceptual framework, Corn Laws, corporate governance, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, Dava Sobel, David Ricardo: comparative advantage, Deng Xiaoping, discovery of the americas, double entry bookkeeping, Edward Snowden, en.wikipedia.org, equal pay for equal work, European colonialism, Ferguson, Missouri, financial deregulation, financial innovation, Francis Fukuyama: the end of history, full employment, income inequality, income per capita, industrial robot, information asymmetry, interest rate swap, invention of movable type, Isaac Newton, James Watt: steam engine, John Harrison: Longitude, joint-stock company, Kula ring, labor-force participation, land reform, Mahatma Gandhi, manufacturing employment, mass incarceration, Maui Hawaii, means of production, megacity, Mikhail Gorbachev, Nelson Mandela, obamacare, openstreetmap, out of africa, PageRank, pattern recognition, road to serfdom, Ronald Reagan, Skype, spinning jenny, Steven Pinker, the market place, transcontinental railway, War on Poverty, WikiLeaks

Friedrich von Hayek’s main concern was the rise of the totalitarian state, and he saw Nazism, from which he had fled several years earlier, as one extreme form of this totalitarian state. Hayek was particularly concerned about “socialist” state planning and administrative regulation of the economy morphing into a type of totalitarianism. He first expressed his ideas about the dangers of growing state administration in the economy in a memo written to William Beveridge. This memo grew into a magazine article, and then into a book, The Road to Serfdom, that has since become one of the most influential works of social science of the twentieth century. Hayek was not against all government intervention or social insurance. He wrote, “Probably nothing has done so much harm to the liberal cause as the wooden insistence of some liberals on certain rough rules of thumb, above all the principle of laissez faire,” and added “there can be no doubt that some minimum of food, shelter, and clothing, sufficient to preserve health and the capacity to work, can be assured to everybody.”

But there are many ways in which we can work toward the same goal, and in the present state of opinion there is some danger that our impatience for quick results may lead us to choose instruments which, though perhaps more efficient for achieving the particular ends, are not compatible with the preservation of a free society. He continued: Of course, six years of socialist government in England have not produced anything resembling a totalitarian state. But those who argue that this has disproved the thesis of The Road to Serfdom have really missed one of its main points: that the most important change which extensive government control produces is a psychological change, an alteration in the character of the people. This is necessarily a slow affair, a process which extends not over a few years but perhaps over one or two generations. The important point is that the political ideals of the people and its attitude toward authority are as much the effect as the cause of the political institutions under which it lives.

They include as well the presence of monopolies that need to be regulated to prevent them from charging excessively high prices or engaging in predatory activities to drive out their competitors. Critically, government intervention is also needed for social insurance or redistribution to limit inequality. An important tenet of the textbook approach is that when working to influence the distribution of income in the economy, the state should minimize its impact on market prices and instead rely on taxes and transfers to achieve its objectives. This is consistent with The Road to Serfdom, where Hayek advocated limits on the scope of the state in the economy because markets are more efficient at allocating resources. But critically, Hayek went further and also argued that the increase in the power and involvement of the state can have adverse political implications. Even if some of Hayek’s conclusions were neither fully compelling nor have been borne out by the political developments of the intervening decades, the way he approached the problem broke considerable new ground.


pages: 388 words: 125,472

The Establishment: And How They Get Away With It by Owen Jones

anti-communist, Asian financial crisis, bank run, battle of ideas, Big bang: deregulation of the City of London, bonus culture, Boris Johnson, Bretton Woods, British Empire, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, centre right, citizen journalism, collapse of Lehman Brothers, collective bargaining, don't be evil, Edward Snowden, Etonian, eurozone crisis, falling living standards, Francis Fukuyama: the end of history, full employment, G4S, glass ceiling, hiring and firing, housing crisis, inflation targeting, Intergovernmental Panel on Climate Change (IPCC), investor state dispute settlement, James Dyson, laissez-faire capitalism, light touch regulation, market fundamentalism, mass immigration, Monroe Doctrine, Mont Pelerin Society, moral hazard, Neil Kinnock, night-watchman state, Northern Rock, Occupy movement, offshore financial centre, old-boy network, open borders, plutocrats, Plutocrats, popular capitalism, profit motive, quantitative easing, race to the bottom, rent control, road to serfdom, Ronald Reagan, shareholder value, short selling, sovereign wealth fund, stakhanovite, statistical model, The Wealth of Nations by Adam Smith, transfer pricing, union organizing, unpaid internship, Washington Consensus, wealth creators, Winter of Discontent

Edward Royle, Modern Britain: A Social History 1750–2011, 3rd edn (London, 2012), p. 12. 7. http://www.churchofengland.org/about-us/structure/churchcommissioners/assets/property-investments/rural.aspx. 8. http://www.theosthinktank.co.uk/files/files/Reports/Voting%20and%20Values%20in%20Britain%2011%20FINAL%20 (2).pdf. 9. www.parliament.uk/briefing-papers/SN01250.pdf. 10. http://www.runnymedetrust.org/blog/49/15/Record-number-of-BME-MPS.html. 11. http://www.boardsforum.co.uk/boardwatch.html. 12. http://raceforopportunity.bitc.org.uk/about-race-opportunity/campaign-aims. 13. http://www.civilservice.gov.uk/about/resources/monitoring-diversity. 14. Jon Ronson, The Psychopath Test: A Journey through the Madness Industry (London, 2012). 1. THE OUTRIDERS 1. F. A. Hayek, The Road to Serfdom (London, 1944), p. 10. 2. Richard Cockett, Thinking the Unthinkable: Think-Tanks and the Economic Counter-Revolution, 1931–1983 (London, 1995), p. 100. 3. George J. Stigler, Memoirs of an Unregulated Economist (New York, 1988), pp. 144–5. 4. Hayek, Road to Serfdom, p. 9. 5. Milton Friedman, Capitalism and Freedom (Chicago, 1962), p. 5. 6. Donald Sassoon, One Hundred Years of Socialism: The West European Left in the Twentieth Century (London, 1996), p. 140. 7. The Economist, 23 November 2006. 8. Sassoon, One Hundred Years of Socialism, p. 118. 9.

The abandonment of laissez-faire economics – or the belief that the state withdrawing itself from economic life was a guarantee of prosperity and freedom – had, he claimed, threatened the very foundations of liberty: ‘We have progressively abandoned that freedom in economic affairs without which personal and political freedom has never existed in the past.’1 Published towards the end of World War II, Hayek’s seminal book The Road to Serfdom was a sensational success. Hundreds of thousands of copies were sold in Britain and other Western countries, and a condensed version was published in Reader’s Digest in April 1945.2 The book’s popularity was of little comfort to Hayek. Despite the huge interest in his work, he wrote to a co-thinker, ‘I am by no means optimistic about the immediate future. The prospects for Europe seem to me as dark as possible.’


pages: 288 words: 16,556

Finance and the Good Society by Robert J. Shiller

Alvin Roth, bank run, banking crisis, barriers to entry, Bernie Madoff, buy and hold, capital asset pricing model, capital controls, Carmen Reinhart, Cass Sunstein, cognitive dissonance, collateralized debt obligation, collective bargaining, computer age, corporate governance, Daniel Kahneman / Amos Tversky, Deng Xiaoping, diversification, diversified portfolio, Donald Trump, Edward Glaeser, eurozone crisis, experimental economics, financial innovation, financial thriller, fixed income, full employment, fundamental attribution error, George Akerlof, income inequality, information asymmetry, invisible hand, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, land reform, loss aversion, Louis Bachelier, Mahatma Gandhi, Mark Zuckerberg, market bubble, market design, means of production, microcredit, moral hazard, mortgage debt, Myron Scholes, Nelson Mandela, Occupy movement, passive investing, Ponzi scheme, prediction markets, profit maximization, quantitative easing, random walk, regulatory arbitrage, Richard Thaler, Right to Buy, road to serfdom, Robert Shiller, Robert Shiller, Ronald Reagan, selection bias, self-driving car, shareholder value, Sharpe ratio, short selling, Simon Kuznets, Skype, Steven Pinker, telemarketer, Thales and the olive presses, Thales of Miletus, The Market for Lemons, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, Vanguard fund, young professional, zero-sum game, Zipcar

Political scientist Benedict Anderson has asserted that the modern nation-state is an “imagined community,” standing in place of family.5 But it is only an imagined community, since the people in it have never met most of the other people in it and have no relationship whatsoever with them. Those who advocate sharing with others face a problem: generosity seems to require a sense of community. Friedrich Hayek, in his 1944 book The Road to Serfdom, discerned a “universal tendency of collectivist policy to become nationalistic.”6 The imagined community has to be elevated to people’s constant attention to encourage their sympathy with or acquiescence in the collectivist policy. Of course, when Hayek wrote in 1944 his prime example was the German National Socialists, the Nazis. But he argued that promotion of the idea of a national community was a universal tendency.

Empires so vast as to defy the intimate understanding of any one man tend to become playthings for manipulation.1 Douglas was part of President Franklin D. Roosevelt’s New Deal: Roosevelt nominated him to the Supreme Court in 1939. The New Deal was a relatively humanizing social force, even as it retained the real strength and integrity that characterize the best financial solutions. This loss of a sense of individual participation in society was the concern that occupied Friedrich Hayek in his 1944 book The Road to Serfdom. He tended to focus on excessive government intervention as the source of the problem, rather than the practices of big business, but he also spoke of government being captured by big business.2 Excessive reliance on such large controlling entities, Hayek believed, leads to a defeated attitude, the attitude of serfs. It may seem odd that his major treatise on capitalism was published near the end of World War II, a time when one might think society would have been occupied by much more pressing concerns.

In Edward Glaeser, ed., The Governance of Not-for-Profit Organizations, 45–70. Chicago: University of Chicago Press. Harbough, William T. 1998. “The Prestige Motive for Making Charitable Transfers.” American Economic Review 88(2):277–88. Harriss, C. Lowell. 1951. History and Policies of the Home Owners’ Loan Corporation. New York: National Bureau of Economic Research. Hayek, F. A. 1944. The Road to Serfdom. London: Routledge. ———. 1945. “The Use of Knowledge in Society.” American Economic Review 35(4):519– 30. Heckman, James J., and Pedro Carneiro. 2003. “Human Capital Policy.” In James J. Heckman and Alan B. Krueger, Inequality in America: What Role for Human Capital Policies?, 77–239. Cambridge, MA: MIT Press. Hellman, Thomas, and Manju Puri. 2002. “Venture Capital and the Professionalization of Start-Up Firms: Empirical Evidence.”


pages: 378 words: 121,495

The Abandonment of the West by Michael Kimmage

Albert Einstein, anti-communist, Berlin Wall, British Empire, Charles Lindbergh, City Beautiful movement, deindustrialization, desegregation, Donald Trump, European colonialism, Francis Fukuyama: the end of history, global pandemic, global supply chain, Gunnar Myrdal, interchangeable parts, Isaac Newton, Mahatma Gandhi, mass immigration, Mikhail Gorbachev, Monroe Doctrine, Nelson Mandela, Peace of Westphalia, profit motive, Ralph Waldo Emerson, RAND corporation, road to serfdom, Ronald Reagan, Ronald Reagan: Tear down this wall, Silicon Valley, South China Sea, Thomas L Friedman, transatlantic slave trade, urban planning, Washington Consensus

Several members of the Vienna school emigrated to Britain in the late 1930s, and over time their ideas and several of the school’s most gifted exponents emigrated to the United States. One of these refugees from Vienna, Friedrich Hayek, published the Road to Serfdom in 1944, its title true to Hayek’s alarming argument. Hayek worried about the “entire abandonment of the individualist tradition which has created Western civilization.” His manifesto on Western liberty captivated conservative readers in the United States, merging the global problem of communism with its local manifestations, the Sino-Soviet bloc abroad with the welfare state at home. How was the United States to get off the road to serfdom and get back on the road to freedom? That was the question. Hardly mainstream in the 1950s, even on the Right, libertarianism was destined to have a profound influence on American foreign policy and on American norms of globalization in the 1990s and the early twenty-first century.

., April 6, 1954, in William F. Buckley Jr., ed., Odyssey of a Friend: Whittaker Chambers’ Letters to William F. Buckley, Jr., 1954–1961 (New York: Putnam, 1969), 67. Whittaker Chambers, “vapors,” Duncan Norton-Taylor, ed., Cold Friday (New York: Random House, 1964), 7. 4. Russell Kirk, “he is a golfer,” quoted in James Person, “A Portrait of Chairman Bill,” National Review, April 29, 2010. 5. Friedrich Hayek, The Road to Serfdom: Texts and Documents, ed. Bruce Caldwell (Chicago: University of Chicago, 2007), 73. 6. See Jesse Curtis, “‘Will the Jungle Take Over?’ National Review and the Defense of Western Civilization in the Era of Civil Rights and African Decolonization,” Journal of American Studies, May 9, 2018, https://doi.org/10.1017/S0021875818000488 (the original National Review editorials were published August 24, 1957, and April 23, 1960).


pages: 330 words: 77,729

Big Three in Economics: Adam Smith, Karl Marx, and John Maynard Keynes by Mark Skousen

"Robert Solow", Albert Einstein, banking crisis, Berlin Wall, Bretton Woods, business climate, business cycle, creative destruction, David Ricardo: comparative advantage, delayed gratification, experimental economics, financial independence, Financial Instability Hypothesis, full employment, Hernando de Soto, housing crisis, Hyman Minsky, inflation targeting, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kenneth Arrow, laissez-faire capitalism, liberation theology, liquidity trap, means of production, microcredit, minimum wage unemployment, money market fund, open economy, paradox of thrift, Pareto efficiency, Paul Samuelson, price stability, pushing on a string, rent control, Richard Thaler, rising living standards, road to serfdom, Robert Shiller, Robert Shiller, rolodex, Ronald Coase, Ronald Reagan, school choice, secular stagnation, Simon Kuznets, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, Tobin tax, unorthodox policies, Vilfredo Pareto, zero-sum game

Ludwig von Mises, the dean of the Austrian school, wrote little about Keynes; his magnum opus, Human Action (1966), makes only a handful of references. Friedrich Hayek, the leading anti-Keynesian in the 1930s, made the strategic error of ignoring The General Theory when it came out in 1936, a decision he later regretted. During World War II, Hayek lost interest in economics and went on to write about political philosophy in works such as The Road to Serfdom (1944) and The Constitution of Liberty (1960). Other free-market economists, such as Henry Hazlitt and Murray Rothbard, wrote largely from outside the profession and had marginal influence. How did Friedman almost single-handedly change the intellectual climate back from the Keynesian model to the neoclassical model of Adam Smith? After acquiring academic credentials, he focused on scholarly technical work, particularly empirical evidence to test the Keynesian model.

New York: Hart. . 1992. The 100: A Ranking of the Most Influen tial Persons in History. 2d ed. New York: Citadel. Hayek, Friedrich. 1935 [1931]. Prices and Production. 2d ed. London: George Routledge and Sons. , ed. 1935. Collectivist Economic Planning. London: George Routledge and Sons. . 1939 [1929]. "The 'Paradox' of Thrift." In Profits, Interest and Investment. London: Routledge, 199-263. . 1944. The Road to Serfdom. Chicago: University of Chicago Press. . 1960. The Constitution of Liberty. Chicago: University of Chicago Press. . 1976. "Introduction: Carl Menger." In Principles of Economics, ed. Carl Menger. New York: New York University Press. . 1984. The Essence of Hayek, ed. Chiaki Nishiyama and Kurt R. Leube. Stanford, CA: Stanford University Press. Hazlitt, Henry. 1959. The Failure of the "New Economics."


Virtual Competition by Ariel Ezrachi, Maurice E. Stucke

Airbnb, Albert Einstein, algorithmic trading, barriers to entry, cloud computing, collaborative economy, commoditize, corporate governance, crony capitalism, crowdsourcing, Daniel Kahneman / Amos Tversky, David Graeber, demand response, disintermediation, disruptive innovation, double helix, Downton Abbey, Erik Brynjolfsson, experimental economics, Firefox, framing effect, Google Chrome, index arbitrage, information asymmetry, interest rate derivative, Internet of things, invisible hand, Jean Tirole, John Markoff, Joseph Schumpeter, Kenneth Arrow, light touch regulation, linked data, loss aversion, Lyft, Mark Zuckerberg, market clearing, market friction, Milgram experiment, multi-sided market, natural language processing, Network effects, new economy, offshore financial centre, pattern recognition, prediction markets, price discrimination, price stability, profit maximization, profit motive, race to the bottom, rent-seeking, Richard Thaler, ride hailing / ride sharing, road to serfdom, Robert Bork, Ronald Reagan, self-driving car, sharing economy, Silicon Valley, Skype, smart cities, smart meter, Snapchat, social graph, Steve Jobs, supply-chain management, telemarketer, The Chicago School, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, Travis Kalanick, turn-by-turn navigation, two-sided market, Uber and Lyft, Uber for X, uber lyft, Watson beat the top human players on Jeopardy!, women in the workforce, yield management

Are we approaching the creation of a single repository of all information that is continually updated and accessible? If so, then surely the dynamics of competition would radically change. Increasingly one may wonder, what is left of competition as we know it? In asking what power the invisible hand still possesses in digitalized markets, we must consider Friedrich A. Hayek’s seminal work on knowledge, competition, and society. In his book The Road to Serfdom, the economist did not condemn governments’ intrusion into the marketplace. He was careful to distinguish his opposition to central planning from a dogmatic laissez-faire attitude.2 Recall that in Hayek’s time, collectivism was on the rise, with fascism, nationalist autarky, and later communism spreading. As Harvard Professor Jeffry Frieden discussed, the Nazis by 1938 “had more than five hundred important state-owned firms, half of all investment was To Regulate or Not to Regulate 207 being carried out by the state, and government spending was 34 percent of GNP, up from 15 percent in the late 1920s.”3 Frieden also observed how, at its height in the late 1930s, the fascist economic order included nearly all of Europe and the Middle East and much of Asia and Africa.4 Thus, democratic governments with market economies, when Hayek wrote his seminal book, were the exception rather than the rule.

fileID = 60931FDE-A2D2-F568-B041B58C5EA591A4 (finding that the U.K. was the only country in the G7 to have recorded rising inequality in the twenty-first century); Organisation for Economic Co-operation and Development, In It Together: Why Less Inequality Benefits All (Paris: Organisation for Economic Cooperation and Development, 2015), http://dx.doi.org/10.1787/9789264235120-en (suggesting the gap between the rich and poor “keeps growing”). 2. F. A. Hayek, The Road to Serfdom (Chicago: University of Chicago Press, 2007), 85. 3. Jeff ry A. Frieden, Global Capitalism: Its Fall and Rise in the Twentieth Century (New York: W. W. Norton, 2007), 204. 4. Ibid., 215. 5. F. A. Hayek, “The Use of Knowledge in Society,” American Economic Review 35, no. 4 (September 1945): 519–530. 6. F. A. Hayek, “Competition as a Discovery Procedure” (Marcellus S. Snow, trans.), Quarterly Journal of Austrian Economics 5, no. 3 (2002): 11, https:// mises.org/sites/default/fi les/qjae5_ 3_ 3.pdf. 7.

See also Super-platforms, advertising revenue and privacy issues Project Cybersyn, in Chile, 213–214 Racial discrimination, 124–125 Rather-be-shopping.com, 111 Reagan administration, 25, 264n11 Real estate market, price discrimination and, 96, 97–98, 99, 288n52 Regulation and intervention: aims of, 203–204; smart regulation, 212–214, 218, 322nn32–37; technology and planned economy versus free market setting prices, 205–217. See also Enforcement issues Resale price maintenance (RPM), 40, 269n10 Reselling. See Arbitrage Reservation price, of customers, 88, 99; behav ior and difficulty of estimating, 97–99; differential pricing and, 85–86; insufficient data for perfect price discrimination, 96–97 Ride-sharing apps, 6–7, 8. See also Uber Technologies, Inc. Road to Serfdom, The (Hayek), 206–208 Robinson-Patman Act, 119, 127–128, 300n47, 301nn48,50 Rosetta Stone, 90 Royal Bank of Scotland plc, 40, 47, 269n7 Rubicon Project, 259n47 “Rule of Reason” standard, 54–55, 246, 279n31, 343n73 Index Salem, Enrique, 149 Sample size, and insufficient data for perfect price discrimination, 99 San Francisco parking regulation, 217, 328nn32–37; SFpark program, 214, 328nn32–37 Scarcity marketing, 110 Schmidt, Eric, 147 Schumpeter, Joseph, 295–296n6 Search costs, reduced by online markets, 5–6, 50 Search engines, as “information gatekeepers,” 136, 304n9 Securities and Exchange Commission (SEC), 68–69 Self-learning algorithms, 11, 14, 15–18; “almost perfect” behavioral discrimination and, 101–103; autonomous pricing and tacit collusion, 74–77, 78; emerging trends and, 21; enforcement issues, 223; hub and spoke collusion scenario, 49 Seller’s power, reduced by online markets, 8–9 Seventh Circuit Court of Appeals, 67 Sheffi, Yossi, 89 Sherman Act, 221, 267n5, 271n20, 330–331n11, 331n13 “Sleepers,” 67, 114 Small and medium size enterprises (SMEs), behavioral discrimination and, 115–116 Smartphones.


pages: 636 words: 202,284

Piracy : The Intellectual Property Wars from Gutenberg to Gates by Adrian Johns

active measures, banking crisis, Berlin Wall, British Empire, Buckminster Fuller, business intelligence, commoditize, Corn Laws, demand response, distributed generation, Douglas Engelbart, Douglas Engelbart, Edmond Halley, Ernest Rutherford, Fellow of the Royal Society, full employment, Hacker Ethic, Howard Rheingold, informal economy, invention of the printing press, Isaac Newton, James Watt: steam engine, John Harrison: Longitude, Marshall McLuhan, Mont Pelerin Society, new economy, New Journalism, Norbert Wiener, pirate software, Republic of Letters, Richard Stallman, road to serfdom, Ronald Coase, software patent, South Sea Bubble, Steven Levy, Stewart Brand, Ted Nelson, the scientific method, traveling salesman, Whole Earth Catalog

As it became clear that the war would be won, realization dawned among opponents of state intervention like Plant that the “threat” loomed of a Labour government in Britain. Clement Attlee’s party was committed to nationalizing key industries and creating a socialized health service. Friedrich Hayek’s Road to Serfdom and Karl Popper’s Open Society and Its Enemies became the two bestknown statements of the position against such policies, Hayek in particular warning of a slippery slope from state planning to totalitarianism. The Road to Serfdom backfired at the time, being widely read as hyperbolic. When Labour did take power, Hayek and his allies retreated and formed themselves into the Mont Pèlerin Society, a group dedicated to economic liberalism in what they perceived to be a hostile world. Polanyi was a foundermember.

Polanyi passionately upheld this view of what he called “pure science,” in almost religious tones (and he was a noted theologian). Bernal’s camp, he concluded, had “surrendered” to a philosophy that would destroy science. He was as opposed to science with a social purpose as Hayek and Popper were to industry with a social purpose. Polanyi’s assault on patenting was all the more remarkable in this context. “Patent Reform” appeared in the Review of Economic Studies in autumn 1944, shortly after The Road to Serfdom. It seemed to mark a sharp departure from everything he and they defended. Polanyi certainly contended that patents misrepresented creativity and corrupted research – that was unsurprising. But he argued that the distortions were so great that they outweighed even the dangers of state intervention. The system could only be fixed by change so radical as to amount to its destruction, he maintained.

This in turn gave way to The Autonomy of Science, which advanced a sweeping threestage view of the history of science extending back centuries. Elements of this then reappeared in what might seem a radically different text, on Economic Planning. Finally, Polanyi turned the book on planning into a volume named Full Employment in Theory and Practice. And this last did appear in print, as Full Employment and Free Trade, in 1945 – constituting the third part of a triptych with Hayek’s Road to Serfdom and Popper’s Open Society. Only much later would fragments of the other projects resurface, most notably in Personal Knowledge. Throughout these pivotal years arguments about patents formed one of the few common threads, linking each new project to the last. Even the fullemployment work culminated with them: their abolition was central to creating a moral form of free trade that it claimed was essential to sustaining low unemployment.


pages: 287 words: 81,970

The Dollar Meltdown: Surviving the Coming Currency Crisis With Gold, Oil, and Other Unconventional Investments by Charles Goyette

bank run, banking crisis, Ben Bernanke: helicopter money, Berlin Wall, Bernie Madoff, Bretton Woods, British Empire, Buckminster Fuller, business cycle, buy and hold, California gold rush, currency manipulation / currency intervention, Deng Xiaoping, diversified portfolio, Elliott wave, fiat currency, fixed income, Fractional reserve banking, housing crisis, If something cannot go on forever, it will stop - Herbert Stein's Law, index fund, Lao Tzu, margin call, market bubble, McMansion, money market fund, money: store of value / unit of account / medium of exchange, mortgage debt, oil shock, peak oil, pushing on a string, reserve currency, rising living standards, road to serfdom, Ronald Reagan, Saturday Night Live, short selling, Silicon Valley, transaction costs

Employment expanded as the economy added 6 million new jobs between 1950 and 1960, while the unemployment rate fell from 10.3 percent to 1.2 percent. Over the decade annual economic growth averaged 8 percent. Industrial production soared by 25 percent in 1950 alone, and by 18 percent the next year. Germany was rebuilt; prosperity was restored. Truly it was an economic miracle. During the postwar occupation of Germany, the American and British authorities banned F. A. Hayek’s seminal 1944 book The Road to Serfdom, for fear it would offend the Soviets. Hayek’s work described the way in which a central economic authority’s planning put a government at war with its own citizens, how it must become increasingly coercive in order to prevail, and how the coercive machinery of the central plan, once erected, can be employed to any coercive end. Violation of price controls was a capital offense in Diocletian’s Rome and in the French Reign of Terror.

New York: Macmillan, 1974. Bryce, Robert. Gusher of Lies: The Dangerous Delusions of “Energy Independence.” New York: PublicAffairs, 2008. Fleckenstein, William A., with Frederick Sheehan. Greenspan’s Bubbles: The Age of Ignorance at the Federal Reserve. New York: McGraw Hill, 2008. Grant, James. Mr. Market Miscalculates: The Bubble Years and Beyond. Mount Jack-son, VA: Axios Press, 2008. Hayek, Friedrich A. The Road to Serfdom. Chicago: University of Chicago Press, 1944. Hazlitt, Henry. The Inflation Crisis, and How to Resolve It. New Rochelle, NY: Arlington House, 1978. Jastrom, Roy W. The Golden Constant. New York: John Wiley and Sons, 1977. Johnson, Chalmers. Nemesis: The Last Days of the American Republic. New York: Metropolitan Books, 2006. ———. The Sorrows of Empire: Militarism, Secrecy, and the End of the Republic.


pages: 273 words: 87,159

The Vanishing Middle Class: Prejudice and Power in a Dual Economy by Peter Temin

"Robert Solow", 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, affirmative action, Affordable Care Act / Obamacare, American Legislative Exchange Council, American Society of Civil Engineers: Report Card, anti-communist, Bernie Sanders, Branko Milanovic, Bretton Woods, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, carried interest, clean water, corporate raider, Corrections Corporation of America, crack epidemic, deindustrialization, desegregation, Donald Trump, Edward Glaeser, Ferguson, Missouri, financial innovation, financial intermediation, floating exchange rates, full employment, income inequality, intangible asset, invisible hand, longitudinal study, low skilled workers, low-wage service sector, mandatory minimum, manufacturing employment, Mark Zuckerberg, mass immigration, mass incarceration, means of production, mortgage debt, Network effects, New Urbanism, Nixon shock, obamacare, offshore financial centre, oil shock, plutocrats, Plutocrats, Powell Memorandum, price stability, race to the bottom, road to serfdom, Ronald Reagan, secular stagnation, Silicon Valley, Simon Kuznets, the scientific method, War on Poverty, Washington Consensus, white flight, working poor

There is an implicit political theory there that will be described in more detail in part II.19 This conservative philosophy represented a change in the intellectual legacy of the preceding thirty years of war and depression from John Maynard Keynes to Hayek. Keynes championed the role of government in achieving prosperity and well-being for the citizens of a democracy. Hayek focused on individual activity as the source of prosperity, and he rejected government in his most popular book, The Road to Serfdom. American economists rejected Keynes in the turbulent 1970s in favor of individual initiatives, and Keynesian macroeconomics was relegated to undergraduate courses. Professional publications amplified Hayek, while economic policymakers still rely on Keynes.20 As noted in the introduction, Ronald Reagan announced his 1980 presidential candidacy in Philadelphia, Mississippi, where three young civil-rights workers were murdered in 1964.

Yonkers and, 131 voting and, 115 women and, 115–116, 118, 120 World War I era and, 133 Putin, Vladimir, 93 Putnam, Robert, 11–12, 39, 165 Race African Americans and, 50 (see also American Americans) Asian, 6, 9, 32, 144 capital and, 52 civil rights and, 15, 20, 22, 27, 53, 56–59, 67, 72, 94, 104, 113, 133, 142 Civil War and, ix, 15, 17–18, 51, 65, 88, 94, 107, 180n13 class and, xii college and, 52, 119–121 conservatives and, 56, 58–59 Democrats and, 51, 58–59 discrimination and, 15, 20–21, 38, 51–54, 56, 58, 66, 89, 105, 117, 153, 171n29 diversity and, 49, 51, 128, 156 equal protection clause and, 58, 67, 102 farmers and, 50, 52 Fifteenth Amendment and, 15, 56 FTE (finance, technology, and electronics) sector and, 10, 49, 55 full citizenship and, 15, 22, 159 Great Migration and, xii, xiv, 20, 27–29, 34–35, 52–55, 104, 116–117, 125 immigrants and, 50–55 industry and, 53 inequality and, 49–60 integration and, 13, 34, 80, 82, 106, 115–117, 120, 122, 128, 142, 157, 159 Irish, 54 Jews, 54, 120 Jim Crow policies and, 27, 49, 51–53, 58, 65–66, 104, 107, 154 jury duty and, 59 labor and, 50, 55 Latinos, 9–10 (see also Latinos) Lewis and, 49 low-wage sector and, 49, 55, 153–154 mortgages and, 117 North and, 51–53, 55, 59 police shootings and, 56–58, 60, 102–103, 179n7 public education and, 115–128 racecraft and, 50–55, 61, 66, 82–83, 88, 91, 101, 109, 115, 153, 155, 176n12 Republicans and, 56, 59 scientific evidence and, 49–50 segregation and, ix, 27, 34, 53, 80, 117–121, 131, 153–154, 171n16 slavery and, xii, 17 (see also Slavery) South and, 50–59 supremacist organizations and, 169n9 unemployment and, 52–53 universities and, 52 voting and, 51, 56–59, 170n1 wages and, 49, 55, 60 white flight and, 34, 38, 117, 125, 179n7 witchcraft analogy and, 50 Race between Education and Technology, The (Goldin and Katz), xiii Rail, 133–134, 158 Rand, Ayn, 21, 81 Rankine, Claudia, 56 Rape, 56–57, 108–109 Rawls, John, 92 Reagan, Ronald, xii, 44, 83, 95 debt and, 142–143 federal grants and, 35, 129 full citizenship of African Americans and, 22 mass incarceration and, 104 neoliberalism of, 22 one-percenters and, 22–23 taxes and, 22 unions and, 22 War on Drugs and, 53 Welfare Queens and, 38, 171n27 Real wages, 3–4, 21, 32–33 Reconstruction, 27, 51, 65, 67, 159 Redlining, 34, 53 REDMAP, 96 Reform debt and, 156, 158 Dodd-Frank Financial Reform Act and, 18 Dodd-Street Wall Street Reform and Consumer Protection Act and, 93 infrastructure issues and, 129–137, 156–158, 163 labor law and, 19 low-wage sector and, 156–159 mass incarceration and, 156 mentally ill and, 107 police and, 102 prison and, 110–113 public education and, 118–119, 122, 125–127, 130, 135, 156–160 Social Security and, 69–70 tax and, 22 Rehnquist, William, 27, 95, 116, 142 Republicans ALEC and, 19 control of state legislatures by, 95–96 Investment Theory of Politics and, 61, 66 low-wage sector and, 154, 170n1 packing attempts by, 96 race and, 56, 59 REDMAP and, 96 very rich and, 80, 95–97 Republican State Leadership Committee (RSLC), 95 Retirement, 11, 25, 29, 33–34, 45, 90, 141, 156, 172n14 Rice, Condoleezza, 71 Road to Serfdom, The (Hayek), 21 Roberts, John, 142 Roe v. Wade, 58 Romney, Mitt, 24 Roosevelt, Franklin D., 21, 52, 65, 80–81, 101, 141 Rubin, Robert, 113 Rural Renaissance, 20 Russakoff, Dale, 123 Russell Sage Foundation, xvii Russia, 58, 93 Rust Belt, 20 Salaries, 8, 24–25, 45, 116, 118, 121 Savings, 7, 12, 17, 105–106, 161–163 Savings and Loan Associations (S&Ls), 17 Scaife, Richard Mellon, 17 Scalia, Antonin, 96 Schorr, Lisbeth, 115 Seawright, Jason, 78–79 Second Reconstruction, 159 Securities and Exchange Commission, 93 Segregation African Americans and, ix, 27, 34, 53, 80, 117–121, 131, 153–154, 171n16 Brown v.


pages: 482 words: 149,351

The Finance Curse: How Global Finance Is Making Us All Poorer by Nicholas Shaxson

activist fund / activist shareholder / activist investor, Airbnb, airline deregulation, anti-communist, bank run, banking crisis, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, Blythe Masters, Boris Johnson, Bretton Woods, British Empire, business climate, business cycle, capital controls, carried interest, Cass Sunstein, Celtic Tiger, central bank independence, centre right, Clayton Christensen, cloud computing, corporate governance, corporate raider, creative destruction, Credit Default Swap, cross-subsidies, David Ricardo: comparative advantage, demographic dividend, Deng Xiaoping, desegregation, Donald Trump, Etonian, failed state, falling living standards, family office, financial deregulation, financial innovation, forensic accounting, Francis Fukuyama: the end of history, full employment, gig economy, Gini coefficient, global supply chain, high net worth, income inequality, index fund, invisible hand, Jeff Bezos, Kickstarter, land value tax, late capitalism, light touch regulation, London Whale, Long Term Capital Management, low skilled workers, manufacturing employment, Mark Zuckerberg, Martin Wolf, Mont Pelerin Society, moral hazard, neoliberal agenda, Network effects, new economy, Northern Rock, offshore financial centre, old-boy network, out of africa, Paul Samuelson, plutocrats, Plutocrats, Ponzi scheme, price mechanism, purchasing power parity, pushing on a string, race to the bottom, regulatory arbitrage, rent-seeking, road to serfdom, Robert Bork, Ronald Coase, Ronald Reagan, shareholder value, sharing economy, Silicon Valley, Skype, smart grid, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, sovereign wealth fund, special economic zone, Steve Ballmer, Steve Jobs, The Chicago School, Thorstein Veblen, too big to fail, transfer pricing, wealth creators, white picket fence, women in the workforce, zero-sum game

The simplest example of this is privatisation, where you sell off state assets to the private sector in the hope that they will compete and become more efficient. If you can achieve this, Hayek argued, then the market can become a tool for finally taming government, the handmaiden of tyranny. (If this has got you thinking about today’s NHS, you’re on the right track.) Hayek’s most famous book, The Road to Serfdom, laid this all out. Competition and the price system were the only legitimate arbiters of what was good and true, he said. And this soon became a neoliberal mantra. Cut taxes, deregulate, privatise and launch all these pieces into competition with each other, then let it all rip. Not just banks or companies, but also health services, universities, school playing fields, environmental protection bodies, sexual abuse referral services, regulators, lawyers, shell companies and the kitchen sink: all of it could be, should be, must be, shoehorned into the same competitive framework, to be sorted and judged by the one true test of virtue: the test of the market.

Perhaps the most pervasive and insidious outcome of this ideology is the broad-based phenomenon known as financialisation, a central element of the finance curse, which involves not just the growth in size of the financial sector but also the injection of financial techniques and competition into pretty much anything that can’t be nailed down – and a lot that can be. Hayek’s thrilling ideas enraptured growing numbers of people, including Margaret Roberts, the president of the Oxford University Conservative Association. Half a century later, long after she had married, taken the surname Thatcher and become Britain’s first female prime minister, she would call Hayek’s Road to Serfdom the book ‘to which I have returned so often’.15 And many other politicians have come to love neoliberalism because the ‘verdict of the market’ absolves them of responsibility for making hard choices, helping them sidestep troublesome notions like fairness or justice. They can simply sit back, watching as the laissez-faire machinery of the market sorts out all that noisy, sweaty, difficult kerfuffle.

122, 136–7 Cadbury’s 113 Cameron, David 48 Capital Group 84 capital requirements 148–63 Careline Homecare Limited 190–3, 202–5, 206, 216, 220 care sector 4, 190–4, 202–9, 216–17, 220, 228, 229, 234 Carillion 46, 231, 237 Carlyle Group 214 Carvalho, Arnaldo Lago de 233 Cassano, Joe 161 Cayman Islands 1, 2, 3, 59–60, 62, 63–7, 93, 125, 136, 140, 141, 145, 150, 151, 152, 153–4, 157, 162, 179, 188, 200, 211, 228, 242 Cayman Trust Law (1967) 62 Celtic Tiger (Ireland economy) 4, 115, 116–39 Central Bank of Ireland 129, 136 Cheney, Dick 244 Cherwell, Lord 53 Chicago School 28, 29, 30, 46, 71, 74, 98, 110, 197, 209, 253 China 13, 23, 50, 55, 84, 85, 87, 92, 104, 108, 110, 117, 138, 200, 258, 262–7, 272, 274 China General Nuclear Power Corporation (CGN) 262–3 Chinese Communist Party (CCP) 258, 264, 265, 266, 267, 272 Christensen, John 5, 11, 48, 67–8 Christensen, Professor Clayton 197, 198 Citibank/Citigroup 11, 59, 83, 129, 140, 159 City of London 37, 38, 84, 92–3, 183, 185, 252, 271, 272, 273; Big Bang 104, 143–4; capture of British establishment 13, 142, 166–7, 257–60, 265, 266; Chinese influence upon 262–7; evidence machine/lobbying and 257–60; financial brain drain and 6, 108, 259; global financial crisis and see global financial crisis; monopolies and 84; neoliberalism and 37, 38; organised crime and other abusive activities linked to 11–12, 93, 97, 141–6, 154, 166, 167, 168; penetrated and captured by reckless global finance (London loophole) 140–68; rebirth as global financial centre after fall of British empire 4, 10, 50–69; tax havens and see tax havens; Third Way and 92–3, 97, 98, 102, 104, 108, 109, 113; UK economy and growth in size of 5–14, 108, 218–40, 257–61, 262–74 City of London Corporation 257–8 Clearing House Group 130–1 Clinton, Bill 91, 97, 101, 114, 115, 122, 159 Clinton, Hillary 91, 100 Coase, Ronald: The Problem of Social Cost 72–4, 79 Coelho, Tony 98–9 Cohen, Benjamin J. 57 Cohen, Sheldon 254 collateralised debt obligations (CDOs) 165, 235 collateralised loan obligations (CLOs) 165, 200 Commodity Futures Modernisation Act (CFMA) (2000) 159–60 Community Mental Health Fund, Missouri 44 comparative advantage concept 105, 108 Competition and Markets Authority 70 competitiveness of nations/competitiveness agenda 8–9, 13–14, 23, 28–49, 62, 68, 70–1, 73, 80, 95, 97–8, 100–15, 130, 131, 132–3, 136, 142, 143, 149, 159, 160, 161, 164, 165, 180–1, 184–5, 207, 218, 241–3, 246–7, 250, 252–3, 258, 266, 267, 270, 271, 273 Conservative Party 37, 53, 71, 78, 102, 157, 165, 168, 220, 229 consultants 40, 41, 42–3, 66, 117, 230, 232, 233 controlled foreign company (CFC) reforms, U.K. 249–50 Cook Islands 177, 186, 272 Cornfield, Bernie 93 corporation: complexity of 3, 205–6; concept of 196–7 credit, control of 21 credit default swap (CDS) 128, 141, 147, 155–9, 165 Credit Suisse 11, 180, 183 crime/criminal money 12, 56, 58, 61, 62, 63, 64–5, 93–4, 142–3, 144, 145, 153, 154, 167–8, 175, 180, 187, 223, 264, 272, 273 Cromwell, William 22 Daily Mail 113, 251, 252 Darling, Alistair 257 Davidson, Charles 182, 189 Davidson, Kenneth 81, 252 Davies, Will 36, 39, 102 Deaton, Angus 181 debt 7, 34, 58, 69, 121, 152, 160, 165, 169, 186, 190, 193–6, 198–201, 205, 206–7, 208, 210, 215, 221, 234, 235, 244, 248, 262 Delaware, U.S. 181 Deloitte 235, 237 Delors, Jacques 100 Democratic Party, U.S. 39, 97, 98–100, 102, 141, 245 Deng Xiaoping 117 Depfa 133 deregulation, financial 13, 31, 35, 64–5, 68–9, 91, 97, 104, 107, 109, 117–18, 138, 142, 143, 146, 152, 159–60, 164, 165, 260 derivatives 12, 140–1, 142, 144, 146–7, 149, 151, 155, 158–60, 161, 164, 193 Desmond, Dermot 129–30 de Tocqueville, Alexis 75–6 Deutsche Bank 83, 95, 111, 160 Devereux, Professor Mike 243 Director, Aaron 71–2, 78, 79 DIRT (Deposit Interest Retention Tax) 136 Down’s Syndrome North East Association (UK) (DNSE) 169–70, 174 Drexel Burnham Lambert 161, 195 drugs: gangs/money 12, 61, 64–5, 92, 142–3, 145, 167, 185–6; pharmaceutical/Big Pharma 85–6, 126, 247 Dunbar, Nicholas 152, 161 dynamic scoring/dynamic modeling 253–4 East India Company 50, 75 Eddy, Bruce 44 Efficient Markets Hypothesis 150 Elf Affair 94, 187 Enron 46, 141, 165, 235–6 Epstein, Professor Gerald 10–11, 259; Overcharged: The High Costs of Finance 10– 11 Ernst & Young 163, 235, 238 Espino, Ovidio Diaz: How Wall Street Created a Nation 23 Essilor 82; EssilorLuxottica 82 Eurodollar markets/Euromarkets 55–9, 60, 61, 62, 63, 64, 68, 69, 77, 91, 93, 104, 142 European Central Bank (ECB) 137 European Commission (EC) 84, 94, 100, 111, 137; Liikanen Report (2012) 135 European Economic Community (EEC) 77, 98, 118, 123, 124–5 European Round Table of Industrialists (ERT) 100 European Union (EU) 98, 109–10, 111, 124, 132, 147, 238 Export Profits Tax Relief 118 Facebook 23, 71, 84, 88, 171, 173, 185, 226, 271, 274 fallacy of composition 107–8, 247 Fallon, Padraic 124 Fanning, John 126 Fantus Factory Location Service 40 Farm Aid 87–8 Federal Reserve Bank of New York 57 Ferguson, Niall: The Ascent of Money 242 Fiat 250 Finance Acts, Ireland: (1968) 120; (1987) 131 finance curse, concept of 3–14, 15, 18, 19, 22, 31, 37, 48, 68, 71, 103, 108, 111, 132, 136, 174, 184–5, 193, 198, 216, 228, 239, 257, 261, 265, 267, 269, 270, 271, 272, 273, 274 financial capture 13, 68, 96, 153, 257, 259, 265, 266 Financial Conduct Authority (FCA) 25–6, 246 financial crisis, global (2007–8) 4, 6, 25, 83, 90, 99, 109, 113, 114, 116, 128, 130, 133–4, 135–6, 140–68, 169, 195, 202, 224–5, 233, 235, 236, 240, 257 financialisation 2–4, 6, 9, 10, 11, 37, 68–9, 71, 88, 90, 174, 180, 185, 190, 191, 194, 198, 205, 217, 224, 225, 226, 228, 232, 259, 267, 274 Financial Services Authority (FSA) 104, 160, 161, 166, 167 Financial Stability Board (FSB) 83 Financial Times 68, 84, 94, 107, 146, 214, 218, 226, 232, 243, 256 Finger, Bernd 168 Fischel, William 38 Fordism 80 foreign direct investment (FDI) 110, 118–19, 123, 124, 132, 250 Fox News 71, 253 Franks, Oliver 52 Fraser, Ian: Shredded 227 free markets 18–19, 71–2, 99, 126, 128, 241 free-rider problem 30–1, 43, 47, 38 free trade 31, 50–1 Friedman, Milton 28, 30, 37, 59, 72, 73–4; ‘The Social Responsibility of Business Is to Increase Its Profits’ 196–7, 198, 209 Friedmaniacs 28, 30 FTSE 100 228, 238 Gapper, John 232–3 Gash, Tom 230 Gates, Bill 127, 185 Gauke, David 249 Gaydamak, Arkady 186 Gazprom 84 GDP (gross domestic product) 6, 8, 111, 112, 123, 147, 153, 174, 241, 245, 254, 256, 260, 266 General Electric (GE) 86–7 Gensler, Gary 140–1 Gibraltar 60, 63 Giddens, Anthony: The Third Way 105 Gilbert, Martin 83 Gilead 85–6 Giles, Chris 218 Glasman, Baron 258 Glass-Steagall Act (1933) 76, 147, 158–9 globalisation 10, 35, 59, 93, 94–5, 97, 98, 101, 102, 103, 106, 107, 109, 165, 177, 251, 254 Golden Age of Capitalism 34, 69, 91, 92, 118, 196, 251, 254–5 Goldman Sachs 113, 159, 160, 183, 213, 235, 242 Google 71, 88, 226, 271 Graphite Capital Partners VIII A LP 191–2, 205, 206 Great Depression (1929–39) 31, 98 Greenspan, Alan 75, 159, 160 gross national income (GNI) 112, 119, 122–3, 134 Guernsey 60, 181, 191, 220, 222 Hahneman, Daniel 181 Haldane, Andrew 225 Hands, Guy 181 Hansen, Lee 28 happiness, wealth and 181–3, 189 Harlech, Lord 34 Harrington, Brooke 186, 188 Hartnett, Dave 113 Harvard Business School 101, 196, 197 Harvie, Alicia 87–8 Harvoni 86 Haughey, Charles 114–15, 120–3, 129–30, 136 Hayek, Friedrich 35–6, 37, 59, 76; The Road to Serfdom 36, 37 Hayes, Jerry 229 Heaton, David 234 hedge funds 6, 13, 83, 104, 108, 128, 130–1, 140–1, 154, 164, 177, 178, 189, 193, 200, 209, 213, 214–15, 217, 233 Henry, James 166, 260 Hewlett-Packard 39–40 Hinkley C 262–3 HMRC 62, 104, 113, 168, 173, 234, 241, 242, 245, 246, 249, 252–4; Computable General Equilibrium model 241, 252–4 HNWI (high net worth individuals) 180; ultra-HNWI 180 Hodge, Margaret 168, 239 Hofri-Windogradow, Adam 180 Hong Kong 50, 130, 138, 171–2, 266 HSBC 12, 54, 83, 107–8, 167, 266 Hundred Group 242 Hunt Companies 221 HypoVereinsbank 133 Industrial Development Authority (IDA), Ireland 118, 124–5, 126, 129, 131, 135 inequality 4, 11, 31, 34, 36, 47, 48, 59, 90, 109, 138, 179, 187, 225, 251, 255, 256, 257, 259, 267–8, 270, 272, 274 inflation 34, 80, 107, 129 Innes, Abby 229 Institute for Fiscal Studies (IFS) 247 Intel 125 internal rate of return (IRR) 198, 211 International Financial Services Centre (IFSC), Dublin 128–35, 251 International Monetary Fund (IMF) 137, 164, 219, 250, 251, 257 International Public Partnerships Limited (INPP) 220–1 International Swaps and Derivatives Association (ISDA) 158 Intruders 113 Investec Wealth & Investment Limited 220 investment funds 2, 88, 110, 140 Investors Overseas Services (IOS) 93 Iran 53–4 Ireland: Celtic Tiger economy in 4, 114–15, 116–39 Isle of Man 60, 136 Jackson County, Missouri, U.S. 44 Jenkins, Robert 11 Jensen, Professor Michael 196, 197, 198, 209, 215 Jersey 1, 2, 3, 5, 60, 63, 67–8, 131, 136, 169, 171, 173, 174, 202, 221, 222, 223, 228, 258 Jiang Zemin 117 Johnson, Boris 218, 219, 222 Johnson County, Kansas, U.S. 41–4 Johnson, Paul 247 Johnson, Simon 257 Joly, Eva 187 Journal of Political Economy 29, 46 JP Morgan Chase 83, 95, 141, 146, 147, 155, 158, 160, 214 Juncker, Jean-Claude 94–5, 97, 102, 103, 104, 111, 114, 122 Kansas, U.S. 41–4, 244–5, 255–6 Kay, John 9 Kennedy, Edward 78–9 Keynes, John Maynard 31–2, 34, 37, 38, 52, 59, 68, 251 KKR (Kohlberg Kravis Roberts) 2, 3, 195, 214 Koch, Charles 74 Kohlberg Junior, Jerome 194, 195, 199 Kohl, Marius 95 KPMG 114, 235, 237, 238–9 Kraft Heinz 81, 113 Kravis, Henry 2, 195 Kroes, Neelie 110 Krugman, Paul: ‘Competitiveness: A Dangerous Obsession’ 105 Labour Party 77, 97, 102–5, 132, 192, 220, 247, 257 Lack, Simon 214; The Hedge Fund Mirage 214 Laffer, Arthur/Laffer curve 244–5, 254 Lazonick, Bill 225, 226 Leaver, Professor Adam 207, 224–5, 234 Lehman Brothers 140, 162–4 Leigh-Pemberton, Robin 145 LeRoy, Greg 40–1 leveraged buyout (LBO) 195–6 Levin, Carl 134 Liberty Global 250 Libor (London Inter-Bank Offered Rate), manipulation of 12, 85, 109, 166 Linares, Adolfo 185, 188 Linklaters 163 Lloyds Bank 52 Local Government Association (LCA) 224 Loch Alpine Economics 253 London School of Economics (LSE) 37, 105, 229 London Stock Exchange (LSE) 167, 220 London Whale 141 Long-Term Capital Management (LTCM) 140–1 Luxembourg 1, 2, 3, 13, 55–6, 92, 93–7, 98, 111–13, 125, 130, 138, 142, 166, 201, 211, 221, 222, 228, 243 Luxleaks scandal (2014) 95, 109 Luxottica 82 Lycamobile 168 Lydian Capital Partnership 202 Lynn, Barry 87, 88 Macdonald, Ken 168 Macmillan, Harold 34, 53–4 MacSharry, Ray: The Making of the Celtic Tiger 118, 127 Madoff, Bernie 94, 96 Madrid, Miguel de la 58 Major, John 220 Maloney, Carolyn 141 Manafort, Paul 183 Manne, Henry 74 Marchant, David 157 Marx, Karl 15, 18 Masters, Blythe 158 Maugham, Jolyon 156 Maurer, Ueli 45–6 Mazerov, Michael 255 McAlpin, Clovis 62 McCarthy, Joseph 29 McCarthy, Justine 119 McCreevy, Charlie 132 McDonald, Duff 197 Mellon, Tamara 208 mergers and acquisitions (M&A) 26, 71, 81, 82, 83, 84, 87, 99, 110, 155, 225, 226, 251 Metcalf, Stephen 36 Microsoft 125, 185 Midland Bank 34, 54–5 Milken, Michael 195 Missouri, U.S. 41, 43, 44, 244–5, 255 money laundering 12, 145–6, 167, 168, 183 Money Trust Investigation, U.S.


pages: 585 words: 151,239

Capitalism in America: A History by Adrian Wooldridge, Alan Greenspan

"Robert Solow", 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Affordable Care Act / Obamacare, agricultural Revolution, air freight, Airbnb, airline deregulation, American Society of Civil Engineers: Report Card, Asian financial crisis, bank run, barriers to entry, Berlin Wall, Bonfire of the Vanities, Bretton Woods, British Empire, business climate, business cycle, business process, California gold rush, Charles Lindbergh, cloud computing, collateralized debt obligation, collective bargaining, Corn Laws, corporate governance, corporate raider, creative destruction, credit crunch, debt deflation, Deng Xiaoping, disruptive innovation, Donald Trump, edge city, Elon Musk, equal pay for equal work, Everybody Ought to Be Rich, Fall of the Berlin Wall, fiat currency, financial deregulation, financial innovation, fixed income, full employment, George Gilder, germ theory of disease, global supply chain, hiring and firing, income per capita, indoor plumbing, informal economy, interchangeable parts, invention of the telegraph, invention of the telephone, Isaac Newton, Jeff Bezos, jimmy wales, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kenneth Rogoff, Kitchen Debate, knowledge economy, knowledge worker, labor-force participation, Louis Pasteur, low skilled workers, manufacturing employment, market bubble, Mason jar, mass immigration, means of production, Menlo Park, Mexican peso crisis / tequila crisis, minimum wage unemployment, mortgage debt, Myron Scholes, Network effects, new economy, New Urbanism, Northern Rock, oil rush, oil shale / tar sands, oil shock, Peter Thiel, plutocrats, Plutocrats, popular capitalism, post-industrial society, postindustrial economy, price stability, Productivity paradox, purchasing power parity, Ralph Nader, Ralph Waldo Emerson, RAND corporation, refrigerator car, reserve currency, rising living standards, road to serfdom, Robert Gordon, Ronald Reagan, Sand Hill Road, savings glut, secular stagnation, Silicon Valley, Silicon Valley startup, Simon Kuznets, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, sovereign wealth fund, stem cell, Steve Jobs, Steve Wozniak, strikebreaker, supply-chain management, The Great Moderation, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, total factor productivity, trade route, transcontinental railway, tulip mania, Tyler Cowen: Great Stagnation, union organizing, Unsafe at Any Speed, Upton Sinclair, urban sprawl, Vannevar Bush, War on Poverty, washing machines reduced drudgery, Washington Consensus, white flight, wikimedia commons, William Shockley: the traitorous eight, women in the workforce, Works Progress Administration, Yom Kippur War, young professional

Republican congressmen prevented Harry Truman from introducing a national health service after the Second World War. Liberal activists have repeatedly been followed by more conservative successors—FDR by Dwight Eisenhower (by way of Truman), Lyndon Johnson by Richard Nixon, and Jimmy Carter by Ronald Reagan. America’s powerful tradition of laissez-faire liberalism also reasserted itself after the Second World War. Friedrich Hayek’s The Road to Serfdom (1944) was condensed in Reader’s Digest and read by millions. Milton Friedman became a television star. Ronald Reagan campaigned on the idea that government was the problem rather than the solution. But can America continue to preserve its comparative advantage in the art of creative destruction? That is looking less certain. The rate of company creation is now at its lowest point since the 1980s.

The conservative movement also played its role. European countries were all dragged to the left by vibrant socialist movements: Communists got 26 percent of the vote in France, 23.5 percent in Finland, 19.5 percent in Iceland, and 19 percent in Italy.6 America alone was dragged to the right by a conservative movement that loathed government. Millions of Americans read Friedrich Hayek’s The Road to Serfdom (1944), or at least the Reader’s Digest condensed version. Businessmen clubbed together to support the American Enterprise Institute, which moved from New York City to Washington, D.C., in 1943. Ayn Rand won a mass audience for her celebration of unfettered individualism in The Fountainhead (1943) and Atlas Shrugged (1957). Even in the immediate aftermath of a war in which American and Russian troops had fought on the same side, anticommunism was rampant: a 1946 poll revealed that 67 percent of Americans opposed letting Communists hold government jobs, and a 1947 poll that 61 percent of respondents favored outlawing the Communist Party.7 The second decision was to embrace the rest of the world.

., 154, 199–200, 251 post–World War II economic expansion, 270–72, 273–98 potholes vs. progress, 394–98 Potter, David, 295 Pratt, Francis, 72 presidential passivity, 157–59 Prince, Charles, 382 prison labor, 87–88 Procter & Gamble, 118–19, 263, 288, 391 productivity, 12–13, 122, 195, 269, 290–93, 453–54 sources of, 14–21 productivity growth, 4, 273–75, 301, 301, 387, 387, 403 Professional Air Traffic Controllers Organization (PATCO), 327–28 professional managers, 207–9 Progressive Era, 25, 165, 176–79, 182, 188, 189, 240–41, 251 Prohibition, 192, 197, 263 property rights, 8, 159–60 protectionism, 7, 194, 230–31, 232, 343–44 Protestant Reformation, 7, 69 Protestant work ethic, 44 Public Broadcasting Act of 1967, 303 Public Works Administration (PWA), 244 Pujo, Arsène, 185 Pullman Company, 144 Pullman Strike of 1894, 154, 173 Pure Food and Drug Act of 1906, 182–83 Puritans, 7, 60 “pursuit of happiness,” 8 pursuit of self-interest, 6–7 Quaker Oats, 92, 320 Quakers, 60 quants, 381–82 racism, 89, 295 radio, 202–4, 316 Radio Corporation of America (RCA), 203–4, 316, 320 “railroaded,” 172 railroads, 53–55, 96–98, 112–15, 121, 136–38, 139, 166–67, 197–98, 265 first refrigerated cars, 119 first transcontinental, 16, 18, 90, 114 miles of railroad built, 96–97, 97 Rand, Ayn, 277–78 Rand, Remington, 350–51 Random House, 320 Ransom, Roger, 85 Raskob, John, 221, 222–23 ratio analysis, 340 Ratzel, Friedrich, 88–89 Raytheon, 283, 349 Reagan, Ronald, 26, 248, 324, 325, 326–31, 344, 391, 406 Reaganomics, 330–31 regulations, 255–58, 328–29, 411–15, 412, 416, 425 resource constraints, 10–11 resource revolution, 48–49 retirement age, 404, 441, 442–43 Revolutionary War, 5–6, 31, 34–35, 38–40, 62, 69, 266, 266 Revson, Charles, 264–65 Riesman, David, 295, 296 Riggio, Leonard, 341 “Rip Van Winkle” (Irving), 40 risk management paradigm, 383–84 Road to Serfdom, The (Hayek), 26, 277 robber barons, 124–33, 167–68, 170–71, 356 Roberts, George, 341 Rockefeller, John D., 17, 103, 124, 125–26, 128–30, 136, 142–43, 164, 167–68, 187, 190 Rockefeller University, 126 Rockoff, Hugh, 186, 187 Roebuck, Alvah, 141–42 Rogers, Will, 239, 243 Roosevelt, Franklin D., 234–35, 237, 239–62 fireside chats, 204, 240, 243, 252 New Deal, 25–26, 225–26, 242–62, 415 wartime renaissance, 266, 268–70 Roosevelt, Theodore, 110, 124, 153, 179, 181–85, 268, 427 “Rosie the Riveter,” 363 rubber, 47, 110, 198–99 Rubin, Robert, 332 Rumsfeld, Donald, 306, 368 russet potato, 118 Rust Belt, 321–23, 366 Sanders, Harland, 197, 443 San Francisco–Oakland Bay Bridge, 90 Santa Clara County v.


The State and the Stork: The Population Debate and Policy Making in US History by Derek S. Hoff

"Robert Solow", affirmative action, Alfred Russel Wallace, back-to-the-land, British Empire, business cycle, clean water, creative destruction, David Ricardo: comparative advantage, demographic transition, desegregation, Edward Glaeser, feminist movement, full employment, garden city movement, George Gilder, Gunnar Myrdal, immigration reform, income inequality, income per capita, invisible hand, Jane Jacobs, John Maynard Keynes: technological unemployment, Joseph Schumpeter, labor-force participation, manufacturing employment, mass immigration, New Economic Geography, new economy, old age dependency ratio, Paul Samuelson, peak oil, pensions crisis, profit motive, Ralph Waldo Emerson, road to serfdom, Ronald Reagan, Scientific racism, secular stagnation, Simon Kuznets, The Chicago School, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, Thorstein Veblen, trickle-down economics, urban planning, urban sprawl, wage slave, War on Poverty, white flight, zero-sum game

Robert Cook of the Population Reference Bureau wrote in Parents’ magazine: “How long it will be possible to maintain the American tradition of liberty for the individual in an increasingly crowded economy is another basic question—one for all Americans to ponder. Some social scientists note an inverse relationship between crowding and liberty.”153 Spengler, too, remarked that human freedom decreased as population increased. A favorable reviewer of Friedrich Hayek’s The Road to Serfdom (1945),154 a foundational book of modern American libertarianism, Spengler averred that larger populations would induce greater centralization and planning. “When the business community puts so much stress on population growth,” he told U.S. News & World Report, “it overlooks . . . that, when the United States numbers 600 million, as it well might 90 years from now, a heavily planned and quite regimented way of life will probably become necessary, and many of the values we presently prize will have to be given up.”155 population unbound 133 The Population Council championed the new aesthetic critique.

Kenneth E. Boulding, “The Economics of the Coming Spaceship Earth,” in Environmental Quality in a Growing Economy: Essays from the Sixth RFF Forum, ed. Henry Jarrett (Baltimore: Johns Hopkins University Press for Resources for the Future, 1966), 3–14. 153. Robert C. Cook, “It’s Going to be a Crowded Planet,” Parents’ Magazine and Home Guide, October 1957, 131. 154. Joseph J. Spengler, review of The Road to Serfdom, by Friedrich A. Hayek, Southern Economic Journal 12 (July 1945): 48–55. 155. Spengler, “ ‘Standing Room Only’ in the World?” 87. 156. “Ad Hoc Meeting—April 4, 1957, Concluding Statement by the Chairman [Frederick Osborn],” Population Council Records, Box 2, Folder 12, “Ad Hoc Philosophy Committee, Meeting 7, Correspondence and Discussion Papers, 1956– 1957,” 2. 157. Dudley Kirk, “Cultural Implications of Population Growth in the United States,” unpublished manuscript, Population Council Records, Box 2, Folder 13, “Ad Hoc Philosophy Committee, Meeting 8 Correspondence and Discussion Papers, 1958” [should read 1957], 4–5. 158.

See also Keynes-Hansen (mature-economy) doctrine Hansen, Clifford, 185 Harberger, Arnold, 125, 126 Hardin, Garrett, 177, 181, 187, 189, 190, 322n105; “The Tragedy of the Commons,” 177–78, 319n71 Harkavy, Oscar, 111 Harrod, Roy, 122 Harrod-Domar model of savings and investment, 122, 295n90, 295n92 Hart, Philip A., 159 Hartnett, Caroline, 2 Hauser, Philip, 132, 309n106 Hayek, Friedrich, 228; The Constitution of Liberty, 208; The Road to Serfdom, 132 366 Hays, Samuel, 56, 299n139 Heller, Walter, 142, 302n19 Hess, Ralph, 27, 69, 70–71 Hietala, Thomas, 41 Higher Education Act of 1965, 140 Hispanic Americans: fertility rate, 2; higher birthrates than non-Hispanic whites in 1970s, 348n29 Hodgson, Dennis, 50, 59 Home Building and Loan Association v. Blaisdell, 96 Hoover, Edgar, 108–9, 136 Hoover, Herbert, 93 Hoover, J. Edgar, 150 Hopkins, Harry, 96 household economics, 208–9, 234, 337n69 Houthakker, Hendrick, 215 Howe, Daniel, 42 Hughes, Charles Evans, 96 Humanae Vitae (papal encyclical), 184, 334n40 human capital theory, 208, 304n43, 338n77 Hume, David, 25–26 Humphrey, Hubert, 140–41, 170 Hunter, Robert, Poverty, 60 Huston, James, 31, 39 immigrants to United States: alliance with Democratic Party, 41; fertility rate, 2, 59; higher birthrates than non-immigrants in 1970s, 348n29; increase in, from 1965, 224, 348n29; percentage of annual US population growth, 7; turn-of-thecentury, 44, 57 Immigration (Hart-Celler) Act of 1965, 157 Immigration Act of 1965, 160, 180, 197 immigration debates: antebellum Southern critique of immigrants as “white slaves,” 35–36; culturally based fear of increase in immigration, 20, 158; 1970s discourse, 180, 198; racist anti-immigrationists, 9, 41, 57, 60, 247; restrictionist movements, 5, 44, 57, 59, 164; undermining the population movement, 7–8, 198, 247 immigration policy: laws as population policy, 6; laws based on racial concerns, 59–60; 1921–1965, 61, 157 immigration reform, 135, 136, 157–64; and cultural pluralism, 157; and desire to dismantle racist system, 164; and family index reunification, 157, 158, 159, 160, 162; lawmakers’ idea of demographic unimportance of, 158, 162–64; in 1920s and 1940s, 158–59; opposed by Southern segregationists, 158, 161; and population anxiety, 158, 160, 161 income inequality: caused by underconsumption, 85; effects of population growth on, 5, 18, 54, 144, 233, 328n174; effects of stable population on, 89, 105, 119, 233, 352n80; and environmental economics, 190; family planning as papering over, 149; Keynes on, 85–86; Malthus on, 28, 33; and optimum population, 91 India, drought and famine in 1960s, 165 Indian Removal Bill, 40 industrialization, 2; and poverty, 57 information technology, 127 International Union for the Scientific Investigation of Population Problems (IUSIPP), 65–66 involuntary sterilization, 45, 61, 79, 150, 178 Iran, fertility rate, 2 Jackson, Andrew, 40 Jackson, Henry “Scoop,” 155, 185, 186, 325n137 Jacobean Radicalism, 31 Jacobs, Jane, 190 Javits, Jacob, 331n16 Jefferson, Thomas, 11, 259n150; and benefits of westward migration, 18–19, 29; distrust of wide-scale manufacturing, 17–18; praise of Malthus’s antimercantilism, 29 Jeffersonianism: agrarianism, 99; doctrine of classical republicanism, 21; fostering of free trade, 24; promotion of development across space, 18–19 Jevons, W.


pages: 558 words: 168,179

Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right by Jane Mayer

affirmative action, Affordable Care Act / Obamacare, American Legislative Exchange Council, anti-communist, Bakken shale, bank run, battle of ideas, Berlin Wall, Capital in the Twenty-First Century by Thomas Piketty, carried interest, centre right, clean water, Climategate, Climatic Research Unit, collective bargaining, corporate raider, crony capitalism, David Brooks, desegregation, diversified portfolio, Donald Trump, energy security, estate planning, Fall of the Berlin Wall, George Gilder, housing crisis, hydraulic fracturing, income inequality, Intergovernmental Panel on Climate Change (IPCC), invisible hand, job automation, low skilled workers, mandatory minimum, market fundamentalism, mass incarceration, Mont Pelerin Society, More Guns, Less Crime, Nate Silver, New Journalism, obamacare, Occupy movement, offshore financial centre, oil shale / tar sands, oil shock, plutocrats, Plutocrats, Powell Memorandum, Ralph Nader, Renaissance Technologies, road to serfdom, Robert Mercer, Ronald Reagan, school choice, school vouchers, The Bell Curve by Richard Herrnstein and Charles Murray, The Chicago School, the scientific method, University of East Anglia, Unsafe at Any Speed, War on Poverty, working poor

“It was a stew pot of ideas,” recalled diZerega, who later became a liberal academic, “but if you grew up with more money than God, and felt weird about it, this version of history, where the robber barons were heroes, would certainly make you feel a lot better about it.” At the Freedom School, Charles became particularly enamored of the work of two laissez-faire economists, the Austrian theorist Ludwig von Mises and his star pupil, Friedrich Hayek, an Austrian exile, who visited the Freedom School. Hayek’s book The Road to Serfdom had become an improbable best seller in 1944, after Reader’s Digest published a condensed version. It offered a withering critique of “collectivism” and argued that centralized government planning, in which liberals were then engaged, would lead, inexorably, to dictatorship. In many respects, Hayek was a throwback, romanticizing a lost golden age of idealized unfettered capitalism that arguably never existed for much of the population.

Eric Wanner, the former president of the Russell Sage Foundation, summed it up, saying, “The AEIs and the Heritages of the world represent the inversion of the progressive faith that social science should shape social policy.” According to one account, it was Hayek who spawned the idea of the think tank as disguised political weapon. As Adam Curtis, a documentary filmmaker with the BBC, tells the story, around 1950, after reading the Reader’s Digest version of Hayek’s Road to Serfdom, an eccentric British libertarian named Antony Fisher, an Eton and Cambridge graduate who believed socialism and Communism were overtaking the democratic West, sought Hayek’s advice about what could be done. Should he run for office? Hayek, who was then teaching at the London School of Economics, told him that for people of their beliefs getting into politics was futile. Politicians were prisoners of conventional wisdom, in Hayek’s view.

“This session will further assess the landscape and offer a plan to educate voters on the importance of economic freedom.” Joining Noble on the panel was Tim Phillips, the president of Americans for Prosperity, who unveiled his group’s plan to spend an unheard-of $45 million on a few targeted midterm races. In the evening, conference goers were treated to a rousing dinner speech from the Fox News host Glenn Beck titled, in homage to Hayek, “Is America on the Road to Serfdom?” Finally, topping off the night was a “cocktails and dessert reception,” hosted by DonorsTrust. Whitney Ball, the head of the organization that offered donors a politically safe way to give big and anonymously, later explained her attendance at the event succinctly: It’s a “target-rich environment.” On the final day, the donors engaged in auction-like bids over lunch, one-upping each other with their seven-figure pledges amid laughter and applause.


pages: 308 words: 99,298

Brexit, No Exit: Why in the End Britain Won't Leave Europe by Denis MacShane

3D printing, banking crisis, battle of ideas, Big bang: deregulation of the City of London, Boris Johnson, Bretton Woods, British Empire, centre right, Corn Laws, deindustrialization, Doha Development Round, Donald Trump, Etonian, European colonialism, first-past-the-post, fixed income, Gini coefficient, greed is good, illegal immigration, James Dyson, labour mobility, liberal capitalism, low cost airline, low cost carrier, Martin Wolf, mass immigration, Mont Pelerin Society, negative equity, Neil Kinnock, new economy, non-tariff barriers, offshore financial centre, open borders, open economy, price stability, purchasing power parity, quantitative easing, reshoring, road to serfdom, secular stagnation, Silicon Valley, Thales and the olive presses, trade liberalization, transaction costs, women in the workforce

In fact, the Brexit crisis has coincided with one of the most fallow periods of political leadership in post-1945 Europe. It is not just politicians. There seem to be no editors or intellectuals, no business leaders, no writers who can articulate any vision that commands support. Putin, Trump and Erdoğan represent all that is worst in the idea of political leadership, but without leadership, followers cannot follow. One man who saw what Europe could and should be was Friedrich Hayek. His short book The Road to Serfdom (published in 1944) is often hailed as the founding charter of postwar economic liberalism. It was seen as an assault on the collectivist, statist, social democratic and socialist ideas that were emerging as the response to both Nazism and communism. Margaret Thatcher venerated the Austrian-born economist and gave him one of Britain’s top honours in 1984. The Mont Pélerin Society was founded in Switzerland to give voice to his ideas.

‘If international economic relations, instead of being relations between individuals become increasingly relations between whole nations organised as trading bodies, they inevitably become the source of friction and envy between whole nations.’ These insights are contained in the last chapter of Hayek’s book. It is probable that Mrs Thatcher and all the other Hayekians did not bother to examine closely the arguments advanced in the final pages of The Road to Serfdom. Hayek, however, makes a better case for the European Union as it has developed than many a more overt Europhile. As he wrote: ‘We cannot hope for order or lasting peace after this war if states, large and small, regain unfettered sovereignty in the economic sphere.’ Contrary to the belief that the EU should simply be a free-trade economic sphere, Hayek argued that: Far from its being true that, as is now widely believed, we need an international economic authority while the states can at the same time retain their unrestricted political sovereignty, almost exactly the opposite is the case.


pages: 463 words: 105,197

Radical Markets: Uprooting Capitalism and Democracy for a Just Society by Eric Posner, E. Weyl

3D printing, activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, Airbnb, Amazon Mechanical Turk, anti-communist, augmented reality, basic income, Berlin Wall, Bernie Sanders, Branko Milanovic, business process, buy and hold, carbon footprint, Cass Sunstein, Clayton Christensen, cloud computing, collective bargaining, commoditize, Corn Laws, corporate governance, crowdsourcing, cryptocurrency, Donald Trump, Elon Musk, endowment effect, Erik Brynjolfsson, Ethereum, feminist movement, financial deregulation, Francis Fukuyama: the end of history, full employment, George Akerlof, global supply chain, guest worker program, hydraulic fracturing, Hyperloop, illegal immigration, immigration reform, income inequality, income per capita, index fund, informal economy, information asymmetry, invisible hand, Jane Jacobs, Jaron Lanier, Jean Tirole, Joseph Schumpeter, Kenneth Arrow, labor-force participation, laissez-faire capitalism, Landlord’s Game, liberal capitalism, low skilled workers, Lyft, market bubble, market design, market friction, market fundamentalism, mass immigration, negative equity, Network effects, obamacare, offshore financial centre, open borders, Pareto efficiency, passive investing, patent troll, Paul Samuelson, performance metric, plutocrats, Plutocrats, pre–internet, random walk, randomized controlled trial, Ray Kurzweil, recommendation engine, rent-seeking, Richard Thaler, ride hailing / ride sharing, risk tolerance, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Rory Sutherland, Second Machine Age, second-price auction, self-driving car, shareholder value, sharing economy, Silicon Valley, Skype, special economic zone, spectrum auction, speech recognition, statistical model, stem cell, telepresence, Thales and the olive presses, Thales of Miletus, The Death and Life of Great American Cities, The Future of Employment, The Market for Lemons, The Nature of the Firm, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thorstein Veblen, trade route, transaction costs, trickle-down economics, Uber and Lyft, uber lyft, universal basic income, urban planning, Vanguard fund, women in the workforce, Zipcar

Our epilogue describes his case for central planning in greater detail.22 Ludwig von Mises and Friedrich Hayek, who were students of the third marginal revolutionary, Carl Menger, pointed out the flaw in central planning: those who undertake it lack the information and analytical capacity to make the best allocative decisions.23 People’s valuations are private information; the genius of the market is its capacity for disseminating this information from consumers to producers through the price system. Central planning, in contrast, results in massive misallocation of resources—the production of goods no one wanted—that was characteristic of real-world socialist economies like that of the Soviet Union.24 Moreover, centralization of the economy opened the way to political abuse, which Hayek memorably called the “road to serfdom.”25 Reacting to these horrors of central planning, Western liberals concluded that capitalism, whatever its limitations, was the superior method of economic organization. The best approach to monopoly was antitrust law (see chapter 4), regulation, and limited state ownership in the most important industries. In the United States, the government subjected “natural monopolies” like electricity to price regulation, and in Europe, major utilities and other large companies were often owned by the government.

These critiques would eventually lead modern socialist thinkers to advocate various hybrid economic relationships like workers’ cooperatives, which would have placed production under greater democratic control, and stronger economic rights, which would make workers less dependent on their employers. See Samuel Bowles & Herbert Gintis, Democracy and Capitalism: Property, Community, and the Contradictions of Modern Social Thought (Basic Books, 1986); Alec Nove, The Economics of Feasible Socialism Revisited (Routledge, 2d ed., 1991). 25. Friedrich Hayek, The Road to Serfdom (Routledge, 1944). 26. Some limited empirical work confirms the lawyer’s intuition that bargaining can be extremely difficult, especially in the sorts of examples that Coase preferred. See Hoyt Bleakley & Joseph Ferrie, Land Openings on the Georgia Frontier and the Coase Theorem in the Short and Long-Run (2014) at http://wwwpersonal.umich.edu/~hoytb/Bleakley_Ferrie_Farmsize.pdf and Ward Farnsworth, Do Parties to Nuisance Cases Bargain after Judgment?


pages: 391 words: 102,301

Zero-Sum Future: American Power in an Age of Anxiety by Gideon Rachman

Asian financial crisis, bank run, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, Bonfire of the Vanities, borderless world, Bretton Woods, BRICs, capital controls, centre right, clean water, collapse of Lehman Brothers, colonial rule, currency manipulation / currency intervention, deindustrialization, Deng Xiaoping, Doha Development Round, energy security, failed state, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, full employment, global reserve currency, greed is good, Hernando de Soto, illegal immigration, income inequality, invisible hand, Jeff Bezos, laissez-faire capitalism, Live Aid, market fundamentalism, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, moral hazard, mutually assured destruction, Naomi Klein, Nelson Mandela, offshore financial centre, open borders, open economy, Peace of Westphalia, peak oil, pension reform, plutocrats, Plutocrats, popular capitalism, price stability, RAND corporation, reserve currency, rising living standards, road to serfdom, Ronald Reagan, shareholder value, Sinatra Doctrine, sovereign wealth fund, special economic zone, Steve Jobs, Stewart Brand, The Chicago School, The Great Moderation, The Myth of the Rational Market, Thomas Malthus, trickle-down economics, Washington Consensus, Winter of Discontent, zero-sum game

It was the integration of global markets that was bringing about unprecedented reductions in global poverty and underpinning the long boom in the developed world. Free markets and free men—economic freedom and political freedom—were also inextricably linked. It was no accident that the two economic gurus of Thatcher and Reagan—Friedrich Hayek and Milton Friedman—were deeply concerned with human liberty. Hayek’s most famous work was an attack on the power of the state called The Road to Serfdom. A collection of Friedman’s most important lectures was given the title Capitalism and Freedom. Even for the likes of Clinton and Blair, neither of whom was a devotee of Hayek or Friedman, globalization served moral ends. For Bill Clinton in particular it was a force for greater global peace and prosperity. And regardless, it was pointless to try to block the progress of globalization. Clinton believed that a new world was being created by the inexorable and unstoppable power of new technologies. 12 PROGRESS BILL GATES AND THE TRIUMPH OF TECHNOLOGY The Age of Optimism was defined and shaped by a technological revolution.

China as interest of, 25 Thatcher compared with, 25, 31, 36, 38, 39–43, 45 recession, 16, 32, 34, 40, 77, 149 see also Great Recession regulation, financial, 111–12, 113, 200–201, 220 Reid, Michael, 73, 78, 299n Republicans, 103, 108, 126, 157, 161, 242–43 resource shortages, 204–7, 262, 263, 272 “responsibility to protect” (R2P), 131, 230, 231 Rice, Susan, 197–98, 289 Rise and Fall of the Great Powers, The (Kennedy), 88 Road to Serfdom, The (Hayek), 118 Rogers, Mike, 266 Rohatyn, Felix, 111 Romania, 67, 68 Roosevelt, Franklin, 38, 282 Rubin, Robert, 112, 117–18 Rudd, Kevin, 218 Rumsfeld, Donald, 104, 125, 209 rupee, Indian, 83 Russia, 35, 59, 60, 96, 117, 165, 199, 240, 243, 255, 273, 274, 275, 290 antiglobalization in, 160 authoritarianism of, 174, 175, 176, 234–38, 240–41, 248, 249 in BRICs, 76–77, 196 democracy in, 130, 146, 168, 237–38, 283 financial crisis in (1998), 107–8, 159, 237 global government and, 217, 218, 223 global problems and, 205, 206, 280 NATO and, 235, 236, 312n–13n as nuclear power, 224, 287, 288 UN and, 225–26, 245 win-win world and, 129–30 Rwanda, 131, 132, 208, 231 Saakashvili, Mikheil (Misha), 233–35 Sachs, Jeffrey, 209, 213, 217 Sakharov, Andrei, 58 Salinas de Gortari, Carlos, 74, 116 Sarkozy, Nicolas, 2, 8, 191, 194, 219, 269–70 Saudi Arabia, 204, 217, 221, 241, 272 savings and loan scandal, 296n Schlesinger, James, 204 Schroeder, Gerhard, 115 Schuman Declaration (1950), 219 Scowcroft, Brent, 180–81, 305n Seattle, Wash., antiglobalization in, 155–56 Senate, U.S., 90, 222 Siberia, 240, 274 Sinatra Doctrine, 64–65 Singapore, 60, 137–40, 143, 213 Singh, Manmohan, 15, 54, 79–83, 102–3, 116, 225, 243 Single European Act (1986), 49–51 Smith, Adam, 2, 17, 82, 113, 192 Smoot-Hawley tariffs, 267 socialism, 15–16, 30, 64, 81 British, 35, 36, 38, 49 in France, 46–49 Solana, Javier, 151 Solidarity, 66, 67 Somalia, 132, 209, 210, 256–57, 273 South Africa, 69–70, 176, 193, 244–45, 246, 262 South Korea, 6, 18, 60, 82, 142, 143, 159, 186, 187, 195, 273 sovereign wealth funds (SWFs), 193, 247 Soviet bloc, 6, 102 collapse of, 17, 18, 35–36, 58–59, 63–71, 76, 128 Soviet Union, 7, 34, 41, 87, 88, 167, 183, 233, 279, 285 Brezhnev Doctrine and, 64, 67 China compared with, 59–61 collapse of, 4, 11, 15, 19, 21, 43, 54, 69–70, 84, 85, 88, 90, 93, 100, 102, 105, 164, 261, 282 Fukuyama’s study of, 99–100 Gorbachev’s reforms in, 15, 16, 25, 27, 42, 53–61, 68, 100, 297n Nehru’s visit to, 81 Soviet bloc collapse and, 58–59, 61, 65–66 U.S. competition with, 131, 282, 284, 291 Spain, Spanish, 8, 72, 147, 165, 188, 235, 270 global government and, 219, 221, 226, 228 Spence, Jonathan, 23–24 Sri Lanka, 223, 231, 274 Stalin, Joseph, 27, 236, 237 Starbucks, 155, 261 State Department, U.S., 99, 100, 117, 188 State of Emergency (Buchanan), 260 Steinberg, James, 5, 129 Stiglitz, Joseph, 157, 159, 160, 314n stock market, 83, 218 in Japan, 18–19, 88–89 U.S., 2–3, 4, 40, 96–97, 107, 110, 165 Strauss-Kahn, Dominique, 152, 219 Sudan, 195, 205, 223, 226, 227, 231, 246, 247, 248, 275, 289 Sullivan, Andrew, 280 Summers, Larry, 7, 117–18, 156, 184 Suskind, Ron, 168 Sweden, 150, 156 Switzerland, 96, 101, 269 Taiwan, 60, 82, 136–37, 143, 186, 237, 249 Talbott, Strobe, 126, 217, 304n Taliban, 167, 239, 252 tariffs, 74, 75, 77, 83, 265, 266, 267 taxes, 49, 94, 109, 115, 216, 236, 267 cuts in, 17, 32, 35, 38, 39, 74, 75, 83, 116 Tax Reform Act (1986), 38 Tbilisi, 233, 234 Tea Party movement, 268 technology, 27, 56, 87, 111, 118–28, 131, 174, 203, 271 climate change and, 203, 204, 286–87 global warming and, 125–26 gloomy predictions and, 125, 204, 206 India and, 6, 81, 84–85, 141 peace and, 5–6, 126 U.S., 93, 95, 118–26, 165, 167, 184, 187, 261 see also information technology television, 119, 124, 135, 234–37, 285 Tennyson, Alfred, Lord, 225 Tequila crisis (1994), 77 terror, war on, 96, 165, 198, 199, 211, 212, 244, 245 terrorism, 36, 161–62, 166, 174, 198, 199, 210, 220, 257, 258, 259, 280 nuclear proliferation and, 211–12 in Pakistan, 211, 212, 251, 252, 256, 313n see also 9/11 Tett, Gillian, 123 Texas A&M, 179–81 Thailand, 6, 60, 142, 143, 159–60 Thatcher, Margaret, 16–17, 29–36, 39–52, 54, 69, 74, 89, 114, 136, 191, 279 Falklands War and, 34, 43, 76 France and, 45–46, 48, 49 Hayek and, 118 as “iron lady,” 34, 42, 45 M.


pages: 518 words: 107,836

How Not to Network a Nation: The Uneasy History of the Soviet Internet (Information Policy) by Benjamin Peters

Albert Einstein, American ideology, Andrei Shleifer, Benoit Mandelbrot, bitcoin, Brownian motion, Claude Shannon: information theory, cloud computing, cognitive dissonance, computer age, conceptual framework, continuation of politics by other means, crony capitalism, crowdsourcing, cuban missile crisis, Daniel Kahneman / Amos Tversky, David Graeber, Dissolution of the Soviet Union, Donald Davies, double helix, Drosophila, Francis Fukuyama: the end of history, From Mathematics to the Technologies of Life and Death, hive mind, index card, informal economy, information asymmetry, invisible hand, Jacquard loom, John von Neumann, Kevin Kelly, knowledge economy, knowledge worker, linear programming, mandelbrot fractal, Marshall McLuhan, means of production, Menlo Park, Mikhail Gorbachev, mutually assured destruction, Network effects, Norbert Wiener, packet switching, Pareto efficiency, pattern recognition, Paul Erdős, Peter Thiel, Philip Mirowski, RAND corporation, rent-seeking, road to serfdom, Ronald Coase, scientific mainstream, Steve Jobs, Stewart Brand, stochastic process, technoutopianism, The Structural Transformation of the Public Sphere, transaction costs, Turing machine

David Remnick, “Soviet Union’s Shadow Economy: Bribery, Barter, and Black Market,” Seattle Times, September 22, 1990, accessed April 15, 2015, http://community.seattletimes.nwsource.com/archive/?date=19900922&slug=1094485. 66. Seth Benedict Graham, “A Cultural Analysis of the Russo-Soviet ‘Anekdot,’” Ph.D. diss., University of Pittsburgh, 2003; Remnick, “Soviet Union’s Shadow Economy.” 67. Two of the most classic cold war critics in the West include Friedrich Hayek, The Road to Serfdom (Chicago: University of Chicago, 1944), 4, 9–11, 28–29, 103–112, 143–145, and Milton Friedman, Free to Choose: A Personal Statement (New York: Harcourt Books, 1980). My comments here intend to both draw on and cut orthogonally across the conventional defense of free markets. 68. A sampling of popular literature on the informal economic activities in the late Soviet Union includes Yuri Brokhin, Hustling on Gorky Street (London: W.

“A Cyborg Manifesto: Science, Technology, and Socialist-Feminism in the Late Twentieth Century.” In Simians, Cyborgs and Women: The Reinvention of Nature. Edited by Donna Haraway. New York: Routledge, 1991. Haraway, Donna, ed. Simians, Cyborgs and Women: The Reinvention of Nature. New York: Routledge, 1991. Harrison, Mark. “Soviet Economic Growth since 1928: The Alternative Statistics of G. I. Khanin.” Europe-Asis Studies 45 (1) (1993): 141–167. Hayek, Friedrich. The Road to Serfdom. Chicago: University of Chicago Press, 1944. Hayles, N. Katherine. How We Became Posthuman: Virtual Bodies in Cybernetics, Literature, and Informatics. Chicago: University of Chicago Press, 1999. Hazard, John N. Communists and Their Law: A Search for the Common Core of the Legal Systems of the Marxian Socialist States. Chicago: University of Chicago, 1969. Heidegger, Martin. The Question concerning Technology and Other Essays.


pages: 300 words: 106,520

The Nanny State Made Me: A Story of Britain and How to Save It by Stuart Maconie

banking crisis, basic income, Bernie Sanders, bitcoin, Boris Johnson, British Empire, cognitive dissonance, collective bargaining, Corn Laws, David Attenborough, Desert Island Discs, don't be evil, Downton Abbey, Elon Musk, Etonian, failed state, Francis Fukuyama: the end of history, full employment, G4S, Gordon Gekko, greed is good, helicopter parent, hiring and firing, housing crisis, job automation, Mark Zuckerberg, market fundamentalism, Marshall McLuhan, North Sea oil, Own Your Own Home, plutocrats, Plutocrats, rent control, Right to Buy, road to serfdom, Silicon Valley, The Chicago School, universal basic income, Winter of Discontent

She was inculcated in many of her bedrock, catechistical ideas at the knee and bacon slicer of her dour grocer father Alfred and during her four visits each Sunday to the Methodist Chapel, albeit without picking up much Christian charity it seems. Here she developed her core beliefs: the virtue of self-reliance, the sanctity of private profit and enterprise, a loathing and mistrust of the state and the public sector. These were the deep tribal roots of what became Thatcherism overlaid on which was an intellectual and theoretical framework taken from Friedrich Hayek’s The Road to Serfdom and the Chicago School of Economics as developed by Milton Friedman. Essentially, Friedman espoused that the free market should be allowed to operate as it sees fit with minimal or no government interference. His doctrine was called ‘monetarism’ and meant strict control of the money supply and inflation even if this brought hardship, job losses and cuts in public spending. It was a way of thinking that sought to present itself as a bracing corrective to Keynesianism and the New Deal, theories which had held sway here and in the US for decades.

A new mood was abroad within Toryism and it was emanating from a figure who now seems ludicrous but whose influence still lingers miasmically in the bloodstream of our system. Keith Joseph was a baronet who’d inherited his wealth and title (without lifting a finger) from his father, the head of Bovis construction. For many years under Macmillan and Heath, he had been merely a jobbing right-wing cabinet stooge. But, unfortunately for Britain, at some point in the early 1970s he read a couple of books. One was Friedrich Hayek’s Road to Serfdom, which is, depending on point of view again, a bracing anti-socialist tract or an opiniated screed of guff masquerading as analysis. Joseph was of the former persuasion. In the cartoon version of Joseph’s life (not currently in production, I imagine), after reading Hayek he’ll be seen wobbling around goofily with twittering birdies and hearts circling his austere head. ‘All my life, I thought I was a Conservative,’ he gushed.


pages: 741 words: 179,454

Extreme Money: Masters of the Universe and the Cult of Risk by Satyajit Das

affirmative action, Albert Einstein, algorithmic trading, Andy Kessler, Asian financial crisis, asset allocation, asset-backed security, bank run, banking crisis, banks create money, Basel III, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Black Swan, Bonfire of the Vanities, bonus culture, Bretton Woods, BRICs, British Empire, business cycle, capital asset pricing model, Carmen Reinhart, carried interest, Celtic Tiger, clean water, cognitive dissonance, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate raider, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, Daniel Kahneman / Amos Tversky, debt deflation, Deng Xiaoping, deskilling, discrete time, diversification, diversified portfolio, Doomsday Clock, Edward Thorp, Emanuel Derman, en.wikipedia.org, Eugene Fama: efficient market hypothesis, eurozone crisis, Everybody Ought to Be Rich, Fall of the Berlin Wall, financial independence, financial innovation, financial thriller, fixed income, full employment, global reserve currency, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, happiness index / gross national happiness, haute cuisine, high net worth, Hyman Minsky, index fund, information asymmetry, interest rate swap, invention of the wheel, invisible hand, Isaac Newton, job automation, Johann Wolfgang von Goethe, John Meriwether, joint-stock company, Jones Act, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kevin Kelly, laissez-faire capitalism, load shedding, locking in a profit, Long Term Capital Management, Louis Bachelier, margin call, market bubble, market fundamentalism, Marshall McLuhan, Martin Wolf, mega-rich, merger arbitrage, Mikhail Gorbachev, Milgram experiment, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, Naomi Klein, negative equity, NetJets, Network effects, new economy, Nick Leeson, Nixon shock, Northern Rock, nuclear winter, oil shock, Own Your Own Home, Paul Samuelson, pets.com, Philip Mirowski, plutocrats, Plutocrats, Ponzi scheme, price anchoring, price stability, profit maximization, quantitative easing, quantitative trading / quantitative finance, Ralph Nader, RAND corporation, random walk, Ray Kurzweil, regulatory arbitrage, rent control, rent-seeking, reserve currency, Richard Feynman, Richard Thaler, Right to Buy, risk-adjusted returns, risk/return, road to serfdom, Robert Shiller, Robert Shiller, Rod Stewart played at Stephen Schwarzman birthday party, rolodex, Ronald Reagan, Ronald Reagan: Tear down this wall, Satyajit Das, savings glut, shareholder value, Sharpe ratio, short selling, Silicon Valley, six sigma, Slavoj Žižek, South Sea Bubble, special economic zone, statistical model, Stephen Hawking, Steve Jobs, survivorship bias, The Chicago School, The Great Moderation, the market place, the medium is the message, The Myth of the Rational Market, The Nature of the Firm, the new new thing, The Predators' Ball, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, trickle-down economics, Turing test, Upton Sinclair, value at risk, Yogi Berra, zero-coupon bond, zero-sum game

Keynes’ General Theory of Employment, Interest and Money, Hayek believed, was primarily motivated by the political and economic problems of the period. Keynesian economics would not solve the problems but would create inflation. Keynes was equally critical of Hayek’s work, commenting that one article started “with a mistake” and then moved on to “bedlam.” Another article constituted “a farrago of nonsense.” Although he got on well with the Austrian personally, and thought Hayek’s 1944 The Road to Serfdom was “a grand book,” Keynes was unpersuaded, concluding: “what rubbish his theory is.”5 Joseph Schumpeter’s worldview was shaped by his role as Austria’s minister of finance, paying off debts incurred in the collapse of central European financial institutions. Intending to be the world’s greatest economist, lover, and horseman, the colorful, thrice-married Austrian acknowledged only having to work at his horsemanship.

Jacob Viner attacked Keynes’ lack of objectivity and judiciousness, dismissing him as a prophet and a politician. Henry Simons, another protégé of Knight, saw Keynes as “the academic idol of...cranks and charlatans...and [the General Theory] as the economic bible of a fascist movement.”13 Frederick Hayek proved a key figure in discrediting Keynes and in the resurgence of free markets. His Road to Serfdom attacked government intervention in the economy. His 1960 book The Constitution of Liberty argued that the power and role of government should be limited to maintaining individual liberty. Hayek criticized the welfare state and the role of unions. His influence on Chicago was strengthened through the Mont Pelerin Society, a collaboration of 36 like-minded scholars seeking to revive the liberal tradition.

See Zimbabwe Richard, Cliff, 157 Richistan, 41 Rio Tinto, 58 Rise and Decline of Nation, The, 294 Rishengchang as a financial center, 84 risk, 35 Bank of International Settlement (BIS), 74-75 banks, 67-70 basis, 213 capital asset pricing model (CAPM), 117 catastrophe, 232 central banks, 281-282, 300-302 concentrations, 273 converting, 270 derivatives, 208-209, 218-219 AIG, 230-234 design of, 225 Fiat, 222-223 first-to-default (FtD) swaps, 220-221 Greece, 223, 225 Harvard case studies, 214-215 hedging, 216-217 Italy, 215-216 LTOBs (tender option bonds), 222 municipal bonds, 211-214 price movements, 210-211 sovereign debt, 236-238 TARDIS trades, 217-218 economic growth, 295-296 exotic products, 73-74 financial groupthink, 296-297 hedge funds, 246 of individual securities and portfolios, 117 insurance, 124 management, 126, 130, 274 reduction, 122-124 risk-free portfolios, 121 securitization, 170-172 taming, 120-122 tranches, 175 unification of, 130 riyals, 21 RJR Nabisco, 139, 149-150, 155 Ro, Arundhati, 365 Road to Serfdom, The, 103 roads, 158 Roark, Howard, 294 Robbins, Larry, 259 Robeldo, Alfredo, 215 Roberston, Julian, 243 Roberts, George, 157 robo signing, 272 Rochefoucauld, François Duc de La, 349 Rockefeller, John D., 338 Rockne, Knute, 97 Rogers, Will, 42-43, 332, 348 rogue traders, 227 Rohatyn, Felix, 148 Rolling Stone magazine, 364 Rolling Stones, the, 164 Rolls Royce jet engines, 24 Rome, 295 Roosevelt, Franklin Delano, 279, 290, 365 Ropes & Gray, 244 Roseman, Joel, 255 Rosenbaum, Alisa.


pages: 603 words: 182,826

Owning the Earth: The Transforming History of Land Ownership by Andro Linklater

agricultural Revolution, anti-communist, Anton Chekhov, Ayatollah Khomeini, Big bang: deregulation of the City of London, British Empire, business cycle, colonial rule, Corn Laws, corporate governance, creative destruction, Credit Default Swap, crony capitalism, David Ricardo: comparative advantage, facts on the ground, Francis Fukuyama: the end of history, full employment, Gini coefficient, Google Earth, income inequality, invisible hand, James Hargreaves, James Watt: steam engine, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, Kibera, Kickstarter, land reform, land tenure, light touch regulation, market clearing, means of production, megacity, Mikhail Gorbachev, Mohammed Bouazizi, Monkeys Reject Unequal Pay, mortgage debt, Northern Rock, Peace of Westphalia, Pearl River Delta, plutocrats, Plutocrats, Ponzi scheme, profit motive, quantitative easing, Ralph Waldo Emerson, refrigerator car, Right to Buy, road to serfdom, Robert Shiller, Robert Shiller, Ronald Reagan, spinning jenny, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, trade route, transatlantic slave trade, transcontinental railway, ultimatum game, wage slave, WikiLeaks, wikimedia commons, working poor

It was, therefore, incumbent on owners to be ready to defend rights that they alone had created by force, and any action by government must represent the first step toward a Socialist usurpation of their independence. The most articulate of von Mises’s students, Friederich von Hayek—in later life he dropped the “von”—wholeheartedly adopted his mentor’s suspicion of government. His bestselling book, The Road to Serfdom, published in 1944, was a savage hymn to the belief that economic freedom could be equated to individual liberty. There was no difference between Fascism and Communism, Hayek warned, or for that matter between Nazi Germany and the democratic governments who were attempting to defeat it by managing their economies to maximize wartime production. “Most of the people whose views influence development,” he declared, “are in some measure socialists.

the theory that von Mises presented: Ludwig von Mises in Socialism: An Economic and Sociological Analysis (New Haven, CT: Yale University Press, 1951), http://mises.org/books/socialism/contents.aspx. the idea originated with his mentor: For Carl Menger in particular and the context of the Austrian School, see The Austrian Mind: An Intellectual and Social History, 1848–1938 by William M. Johnston (Berkeley, CA: University of California Press, 1995), 77–82. economic freedom could be equated to individual liberty: The Road to Serfdom appeared in a shortened, best-selling Reader’s Digest version, but the original is definitive (London: Routledge, 1944). “This is what we believe in.”: Story cited in Margaret Thatcher: Portrait of the Iron Lady by John Blundell (London: Algora, 2008), 41. It was a revealing admission: The Constitution of Liberty by Friederich Hayek (Chicago: University of Chicago Press, 1960). The heavily taxed and regulated economy grew: Economic growth 1950–70.

Cambridge and New York: Cambridge University Press, 1999. Harrington, James. The Commonwealth of Oceana (1656) and A System of Politics, ed. J. G. A. Pocock. Cambridge: Cambridge University Press, 1992. Harrison, Rev. William. Description of Britain and England, originally part of Chronicles of England by Raphael Hollinshed. 1578. Hayek, Friederich. The Constitution of Liberty. Chicago: University of Chicago Press, 1960. ———. The Road to Serfdom. London: Routledge, 1944. Hayes, Edward. Sir Humphrey Gilbert’s Voyage to Newfoundland in Richard Hakluyt’s The Principall Navigations, Voiages and Discoveries of the English Nation. London: George Bishop and Ralph Newberie, 1589. www.gutenberg.org/ebooks/3338. Hening, William Waller. Statutes at Large; Being a Collection of All the Laws of Virginia. Richmond, VA: Pleasants, 1809–1823. Hibbert, F.


Termites of the State: Why Complexity Leads to Inequality by Vito Tanzi

"Robert Solow", accounting loophole / creative accounting, Affordable Care Act / Obamacare, Andrei Shleifer, Andrew Keen, Asian financial crisis, asset allocation, barriers to entry, basic income, bitcoin, Black Swan, Bretton Woods, business cycle, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Cass Sunstein, central bank independence, centre right, clean water, crony capitalism, David Graeber, David Ricardo: comparative advantage, deindustrialization, Donald Trump, Double Irish / Dutch Sandwich, experimental economics, financial repression, full employment, George Akerlof, Gini coefficient, Gunnar Myrdal, high net worth, hiring and firing, illegal immigration, income inequality, indoor plumbing, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Jean Tirole, John Maynard Keynes: Economic Possibilities for our Grandchildren, Kenneth Arrow, Kenneth Rogoff, knowledge economy, labor-force participation, libertarian paternalism, Long Term Capital Management, market fundamentalism, means of production, moral hazard, Naomi Klein, New Urbanism, obamacare, offshore financial centre, open economy, Pareto efficiency, Paul Samuelson, price stability, principal–agent problem, profit maximization, pushing on a string, quantitative easing, rent control, rent-seeking, Richard Thaler, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, Second Machine Age, secular stagnation, self-driving car, Silicon Valley, Simon Kuznets, The Chicago School, The Great Moderation, The Market for Lemons, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, transfer pricing, Tyler Cowen: Great Stagnation, universal basic income, unorthodox policies, urban planning, very high income, Vilfredo Pareto, War on Poverty, Washington Consensus, women in the workforce

The planners would presumably focus on producing essential, basic goods, using the resources that had previously gone toward the production of “luxury” or “nonessential” goods. In the process they would aim at satisfying the basic needs of citizens and at generating a society with more economic equality and social justice. As Hayek would point out some years later, in his important and influential book The Road to Serfdom ([1944] 2007), the idea of economic planning became popular in the 1920s and especially in the 1930s in major European universities, including in the prestigious Cambridge University in England, where it received the endorsement of several influential Economic Role of State between World Wars 27 economists. It had attracted an increasing number of intellectuals and many workers. In those years, authoritarian and fascist governments in European countries and elsewhere, such as Argentina, Brazil, Mexico, Japan, and some other countries, would adopt some version of economic planning, which allowed them to increase their political power and their control over the economy and over the populations, as Hayek pointed out.

Harhoff, Dietmar, 2016, “Innovation and Taxation,” Paper Presented at the 2016 Congress of the International Institute of Public Finance (IIPF), Lake Tahoe (August 9–11). Hasanov, Fuad and Oded Izraeli, 2012, “How Much Inequality Is Necessary for Growth?” Harvard Business Review, January–February, 518–539. 410 Bibliography Hawley, Ellis W., 1966, The New Deal and the Problem of Monopoly: A Study in Economic Ambivalence (Princeton, NJ: Princeton University Press). Hayek, F. A. [1944] 2007, The Road to Serfdom, edited by Bruce Caldwell (Chicago: The University of Chicago Press). [1960] 2011, The Constitution of Liberty, edited by Bruce Caldwell (Chicago: The University of Chicago Press). 1988, The Fatal Conceit: The Errors of Socialism, edited by W. W. Bartley III (The University of Chicago Press). Hegel, Georg Wilhelm Friedrich, 1956, The Philosophy of History (New York, NY: Dover Publication, Inc.).

See also specific country overview, 144 abuse of, 124 adaptation to change, 282 banks and, 126 civic associations and, 130, 154 complexity of, 170–72, 278 conservative opposition to, 160, 278 consumer protection regulations, 148–50 correcting or reducing externalities through, 147 corruption and, 124, 280 creation of, 277 debates regarding, 154, 170 demand, effect on, 128–29 democracy and, 134 dependent workers and, 23 deregulation overview, 87–88 economic freedom and, 86 income redistribution and, 197 potential for future crises and, 108, 109 in US, 82 discretion and, 151–52 economic freedom, effect on, 130–31 economic impact of, 276–77 essential regulations, 280–81 evolution of, 123, 124 excessive regulations, 279 externalities and, 164, 281–82 failure of, 171–73 federalism and, 125, 126, 173, 284–85 financial institutions and, 126, 155, 157 fundamental law of, 278–79 growth, effect on, 158–59, 228 implementing regulations, 333 income redistribution and, 278 institutional reforms, 173–74 liberals and, 160 libertarian opposition to, 153–54, 278 lobbyists and, 171, 173, 280 mandated disclosures, 127–28 market-enhancing regulations, 150–51 market fundamentalism and, 158, 160 as mercantilism, 123 Musgrave on, 278 natural monopolies and, 147 negative effects of, 124, 128 “nirvana error,” 151 nuisance regulations, 144–45 occupational licensing and, 124–26 opposition to, 123, 129, 153–55, 160, 170, 278, 282–83 as policy tool, 141 politics and, 278–80 productivity, effect on, 158–59 public interest and, 131 quasi-fiscal regulations, 151 recommendations regarding, 283 “red tape,” 124, 228 rents and, 124–25 review of, 172, 284 safety-related regulations, 146–47 scientific studies and, 281 second-best regulations, 145–46 “single window” system, 284–85 social costs of, 282 social regulations, 146 urbanization, effect of, 130 Regulatory budget, 284 Regulatory capture, 129, 172–73 Relative income hypothesis, 319 Relative poverty, 216, 226–27 Religious trust in market, 37, 78, 396 Rent control, 145–46 Rents “crony capitalism” and, 112 financial institutions and, 119 financial sector and, 330 intellectual property and, 353 regulations and, 124–25 Reputational motive, 374–75 Rerum Novarum (Leo XIII), 20 Research income redistribution and, 194–97 as public good, 179–80 in US, 194–97 Rezoning, 136 441 442 Index Ricardian equivalence hypothesis, 62–64, 86–87, 394–95 Ricardo, David, 63 The Road to Serfdom (Hayek), 26–27 Rockefeller, Jay, 335 Role of government overview, 1–11 allocation of resources, 187–88, 211–12. See also Allocation of resources Burke on, 160, 189 employment and, 189–90 growth and, 7, 189–90 income inequality and, 317 income redistribution, 187, 189, 190, 202. See also Income redistribution intellectual property and, 354 legal rules, changes in, 258–59 limited role. See Limited role of government Musgrave on, 110, 162, 168, 187, 189 normative approach to generally, 3–4, 313–14 complexity and, 110 market failures and, 110–11 politics and, 111 in US, 110 public institutions and, 298–300 Samuelson on, 110, 400 stabilization policies, 187, 189, 211–12.


pages: 128 words: 38,847

The Curse of Bigness: Antitrust in the New Gilded Age by Tim Wu

AltaVista, barriers to entry, collective bargaining, corporate personhood, corporate raider, creative destruction, Donald Trump, income inequality, Johann Wolfgang von Goethe, Joseph Schumpeter, Kickstarter, move fast and break things, move fast and break things, new economy, open economy, Peter Thiel, price discrimination, road to serfdom, Robert Bork, Silicon Valley, Snapchat, The Chicago School

Given this baseline, the fact that mainstream antitrust economics would come to tolerate and even celebrate monopoly makes for an extraordinary tale. By the postwar period, when antitrust reached its heights, there remained strong intellectual backing for antitrust laws among both conservative and liberal economists.* Liberal economists tended to support antitrust as a counter to the domination of big business. Conservatives feared “a road to serfdom,” in Friedrich Hayek’s phrase, resulting from central planning accomplished through a union of monopolies and the state. Some thought of monopolies as a threat to economic freedom by themselves; others feared that private monopolies provided an excuse for nationalization or at least extensive regulation. Here is conservative economist George Stigler, writing in 1952: “The dissolution of big businesses is … a part of the program necessary to increase the support for a private, competitive enterprise economy, and reverse the drift toward government control.”


pages: 464 words: 116,945

Seventeen Contradictions and the End of Capitalism by David Harvey

accounting loophole / creative accounting, bitcoin, Branko Milanovic, Bretton Woods, BRICs, British Empire, business climate, California gold rush, call centre, central bank independence, clean water, cloud computing, collapse of Lehman Brothers, colonial rule, creative destruction, Credit Default Swap, David Ricardo: comparative advantage, deindustrialization, demographic dividend, Deng Xiaoping, deskilling, drone strike, end world poverty, falling living standards, fiat currency, first square of the chessboard, first square of the chessboard / second half of the chessboard, Food sovereignty, Frank Gehry, future of work, global reserve currency, Guggenheim Bilbao, Gunnar Myrdal, income inequality, informal economy, invention of the steam engine, invisible hand, Isaac Newton, Jane Jacobs, Jarndyce and Jarndyce, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Just-in-time delivery, knowledge worker, low skilled workers, Mahatma Gandhi, market clearing, Martin Wolf, means of production, microcredit, new economy, New Urbanism, Occupy movement, peak oil, phenotype, plutocrats, Plutocrats, Ponzi scheme, quantitative easing, rent-seeking, reserve currency, road to serfdom, Robert Gordon, Ronald Reagan, short selling, Silicon Valley, special economic zone, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, transaction costs, Tyler Cowen: Great Stagnation, wages for housework, Wall-E, women in the workforce, working poor, working-age population

The freedom that regulation creates is denounced as unfreedom; the justice, liberty and welfare it offers are decried as a camouflage of slavery … This means the fullness of freedom for those whose income, leisure and security need no enhancing, and a mere pittance of liberty for the people, who may in vain attempt to make use of their democratic rights to gain shelter from the owners of property.’6 Thus does Polanyi construct a telling rebuttal to the central theses of Friedrich Hayek’s Road to Serfdom, written in 1942–3 but to this day a bible of the libertarian right and a mightily influential text (having sold more than 2 million copies). Clearly at the root of the dilemma lies the meaning of freedom itself. The utopianism of liberal political economy ‘gave a false direction to our ideals,’ notes Polanyi. It failed to recognise that ‘no society is possible in which power and compulsion are absent nor a world in which force has no function’.

., Disposable Women and Other Myths of Global Capitalism, New York, Routledge, 2006 Index Numbers in italics indicate Figures. 2001: A Space Odyssey (film) 271 A Abu Ghraib, Iraq 202 acid deposition 255, 256 advertising 50, 121, 140, 141, 187, 197, 236, 237, 275, 276 Aeschylus 291 Afghanistan 202, 290 Africa and global financial crisis 170 growth 232 indigenous population and property rights 39 labour 107, 108, 174 ‘land grabs’ 39, 58, 77, 252 population growth 230 Agamben, Giorgio 283–4 agglomeration 149, 150 economies 149 aggregate demand 20, 80, 81, 104, 173 aggregate effective demand 235 agribusiness 95, 133, 136, 206, 247, 258 agriculture ix, 39, 61, 104, 113, 117, 148, 229, 239, 257–8, 261 Alabama 148 Algerian War (1954–62) 288, 290 alienation 57, 69, 125, 126, 128, 129, 130, 198, 213, 214, 215, 263, 266–70, 272, 275–6, 279–80, 281, 286, 287 Allende, Salvador 201 Althusser, Louis 286 Amazon 131, 132 Americas colonisation of 229 indigenous populations 283 Amnesty International 202 anti-capitalist movements 11, 14, 65, 110, 111, 162 anti-capitalist struggle 14, 110, 145, 193, 269, 294 anti-globalisation 125 anti-terrorism xiii apartheid 169, 202, 203 Apple 84, 123, 131 apprenticeships 117 Arab Spring movement 280 Arbenz, Jacobo 201 Argentina 59, 107, 152, 160, 232 Aristotelianism 283, 289 Aristotle 1, 4, 200, 215 arms races 93 arms traffickers 54 Arrighi, Giovanni 136 Adam Smith in Beijing 142 Arthur, Brian: The Nature of Technology 89, 95–9, 101–4, 110 artificial intelligence xii, 104, 108, 120, 139, 188, 208, 295 Asia ‘land grabs’ 58 urbanisation 254 assembly lines 119 asset values and the credit system 83 defined 240 devalued 257 housing market 19, 20, 21, 58, 133 and predatory lending 133 property 76 recovery of 234 speculation 83, 101, 179 associationism 281 AT&T 131 austerity xi, 84, 177, 191, 223 Australia 152 autodidacts 183 automation xii, 103, 105, 106, 108, 138, 208, 215, 295 B Babbage, Charles 119 Bangkok riots, Thailand (1968) x Bangladesh dismantlement of old ships 250 factories 129, 174, 292 industrialisation 123 labour 108, 123, 129 protests against unsafe labour conditions 280 textile mill tragedies 249 Bank of England 45, 46 banking bonuses 164 electronic 92, 100, 277 excessive charges 84 interbank lending 233 and monopoly power 143 national banks supplant local banking in Britain and France 158 net transfers between banks 28 power of bankers 75 private banks 233 profits 54 regional banks 158 shell games 54–5 systematic banking malfeasance 54, 61 Baran, Paul and Sweezy, Paul: Monopoly Capitalism 136 Barcelona 141, 160 barrios pobres ix barter 24, 25, 29 Battersea Power Station, London 255 Battle of Algiers, The (film) 288 Bavaria, Germany 143, 150 Becker, Gary 186 Bernanke, Ben 47 Bhutan 171 billionaires xi, 165, 169, 170 biodiversity 246, 254, 255, 260 biofuels 3 biomedical engineering xii Birmingham 149 Bitcoin 36, 109 Black Panthers 291 Blade Runner (film) 271 Blankfein, Lloyd 239–40 Bohr, Niels 70 Bolivia 257, 260, 284 bondholders xii, 32, 51, 152, 158, 223, 240, 244, 245 bonuses 54, 77, 164, 178 Bourdieu, Pierre 186, 187 bourgeois morality 195 bourgeois reformism 167, 211 ‘Brady Bonds’ 240 Braudel, Fernand 193 Braverman, Harry: Labor and Monopoly Capital 119 Brazil a BRIC country 170, 228 coffee growers 257 poverty grants 107 unrest in (2013) 171, 243, 293 Brecht, Bertolt 265, 293 Bretton Woods (1944) 46 brewing trade 138 BRIC countries 10, 170, 174, 228 Britain alliance between state and London merchant capitalists 44–5 banking 158 enclosure movement 58 lends to United States (nineteenth century) 153 suppression of Mau Mau 291 surpluses of capital and labour sent to colonies 152–3 welfare state 165 see also United Kingdom British Empire 115, 174 British Museum Library, London 4 British Petroleum (BP) 61, 128 Buffett, Peter 211–12, 245, 283, 285 Buffett, Warren 211 bureaucracy 121–2, 165, 203, 251 Bush, George, Jr 201, 202 C Cabet, Étienne 183 Cabral, Amilcar 291 cadastral mapping 41 Cadbury 18 Cairo uprising (2011) 99 Calhoun, Craig 178 California 29, 196, 254 Canada 152 Cape Canaveral, Florida 196 capital abolition of monopolisable skills 119–20 aim of 92, 96–7, 232 alternatives to 36, 69, 89, 162 annihilation of space through time 138, 147, 178 capital-labour contradiction 65, 66, 68–9 and capitalism 7, 57, 68, 115, 166, 218 centralisation of 135, 142 circulation of 5, 7, 8, 53, 63, 67, 73, 74, 75, 79, 88, 99, 147, 168, 172, 177, 234, 247, 251, 276 commodity 74, 81 control over labour 102–3, 116–17, 166, 171–2, 274, 291–2 creation of 57 cultural 186 destruction of 154, 196, 233–4 and division of labour 112 economic engine of 8, 10, 97, 168, 172, 200, 253, 265, 268 evolution of 54, 151, 171, 270 exploitation by 156, 195 fictitious 32–3, 34, 76, 101, 110–11, 239–42 fixed 75–8, 155, 234 importance of uneven geographical development to 161 inequality foundational for 171–2 investment in fixed capital 75 innovations 4 legal-illegal duality 72 limitless growth of 37 new form of 4, 14 parasitic forms of 245 power of xii, 36, 47 private capital accumulation 23 privatisation of 61 process-thing duality 70–78 profitability of 184, 191–2 purpose of 92 realisation of 88, 173, 192, 212, 231, 235, 242, 268, 273 relation to nature 246–63 reproduction of 4, 47, 55, 63, 64, 88, 97, 108, 130, 146, 161, 168, 171, 172, 180, 181, 182, 189, 194, 219, 233, 252 spatiality of 99 and surplus value 63 surpluses of 151, 152, 153 temporality of 99 tension between fixed and circulating capital 75–8, 88, 89 turnover time of 73, 99, 147 and wage rates 173 capital accumulation, exponential growth of 229 capital gains 85, 179 capital accumulation 7, 8, 75, 76, 78, 102, 149, 151–5, 159, 172, 173, 179, 192, 209, 223, 228–32, 238, 241, 243, 244, 247, 273, 274, 276 basic architecture for 88 and capital’s aim 92, 96 collapse of 106 compound rate of 228–9 and the credit system 83 and democratisation 43 and demographic growth 231 and household consumerism 192 and lack of aggregate effective demand in the market 81 and the land market 59 and Marx 5 maximising 98 models of 53 in a new territories 152–3 perpetual 92, 110, 146, 162, 233, 265 private 23 promotion of 34 and the property market 50 recent problems of 10 and the state 48 capitalism ailing 58 an alternative to 36 and capital 7, 57, 68, 115, 166, 218 city landscape of 160 consumerist 197 contagious predatory lawlessness within 109 crises essential to its reproduction ix; defined 7 and demand-side management 85 and democracy 43 disaster 254–5, 255 economic engine of xiii, 7–8, 11, 110, 220, 221, 252, 279 evolution of 218 geographical landscape of 146, 159 global xi–xii, 108, 124 history of 7 ‘knowledge-based’ xii, 238 and money power 33 and a moneyless economy 36 neoliberal 266 political economy of xiv; and private property rights 41 and racialisation 8 reproduction of ix; revivified xi; vulture 162 capitalist markets 33, 53 capitalo-centric studies 10 car industry 121, 138, 148, 158, 188 carbon trading 235, 250 Caribbean migrants 115 Cartesian thinking 247 Cato Institute 143 Central America 136 central banks/bankers xi–xii, 37, 45, 46, 48, 51, 109, 142, 156, 161, 173, 233, 245 centralisation 135, 142, 144, 145, 146, 149, 150, 219 Césaire, Aimé 291 CFCs (chloro-fluorocarbons) 248, 254, 256, 259 chambers of commerce 168 Chandler, Alfred 141 Chaplin, Charlie 103 Charles I, King 199 Chartism 184 Chávez, Hugo 123, 201 cheating 57, 61, 63 Cheney, Dick 289 Chicago riots (1968) x chicanery 60, 72 children 174 exploitation of 195 raising 188, 190 trading of 26 violence and abuse of 193 Chile 136, 194, 280 coup of 1973 165, 201 China air quality 250, 258 becomes dynamic centre of a global capitalism 124 a BRIC country 170, 228 capital in (after 2000) 154 class struggles 233 and competition 150, 161 consumerism 194–5, 236 decentralisation 49 dirigiste governmentality 48 dismantlement of old ships 250 dispossessions in 58 education 184, 187 factories 123, 129, 174, 182 famine in 124–5 ‘great leap forward’ 125 growth of 170, 227, 232 income inequalities 169 industrialisation 232 Keynesian demand-side and debt-financed expansion xi; labour 80, 82, 107, 108, 123, 174, 230 life expectancy 259 personal debt 194 remittances 175 special economic zones 41, 144 speculative booms and bubbles in housing markets 21 suburbanisation 253 and technology 101 toxic batteries 249–50 unstable lurches forward 10 urban and infrastructural projects 151 urbanisation 232 Chinese Communist Party 108, 142 Church, the 185, 189, 199 circular cumulative causation 150 CitiBank 61 citizenship rights 168 civil rights 202, 205 class affluent classes 205 alliances 143, 149 class analysis xiii; conflict 85, 159 domination 91, 110 plutocratic capitalist xiii; power 55, 61, 88, 89, 92, 97, 99, 110, 134, 135, 221, 279 and race 166, 291 rule 91 structure 91 class struggle 34, 54, 67, 68, 85, 99, 103, 110, 116, 120, 135, 159, 172, 175, 183, 214, 233 climate change 4, 253–6, 259 Clinton, President Bill 176 Cloud Atlas (film) 271 CNN 285 coal 3, 255 coercion x, 41–4, 53, 60–63, 79, 95, 201, 286 Cold War 153, 165 collateralised debt obligations (CDOs) 78 Collins, Suzanne: The Hunger Games 264 Colombia 280 colonialism 257 the colonised 289–90 indigenous populations 39, 40 liberation from colonial rule 202 philanthropic 208, 285 colonisation 229, 262 ‘combinatorial evolution’ 96, 102, 104, 146, 147, 248 commercialisation 262, 263, 266 commodification 24, 55, 57, 59–63, 88, 115, 140, 141, 192, 193, 235, 243, 251, 253, 260, 262, 263, 273 commodities advertising 275 asking price 31 and barter 24 commodity exchange 39, 64 compared with products 25–6 defective or dangerous 72 definition 39 devaluation of 234 exchange value 15, 25 falling costs of 117 importance of workers as buyers 80–81 international trade in 256 labour power as a commodity 62 low-value 29 mobility of 147–8 obsolescence 236 single metric of value 24 unique 140–41 use value 15, 26, 35 commodity markets 49 ‘common capital of the class’ 142, 143 common wealth created by social labour 53 private appropriation of 53, 54, 55, 61, 88, 89 reproduction of 61 use values 53 commons collective management of 50 crucial 295 enclosure of 41, 235 natural 250 privatised 250 communications 99, 147, 148, 177 communism 196 collapse of (1989) xii, 165 communist parties 136 during Cold War 165 scientific 269 socialism/communism 91, 269 comparative advantage 122 competition and alienated workers 125 avoiding 31 between capitals 172 between energy and food production 3 decentralised 145 and deflationary crisis (1930s) 136 foreign 148, 155 geopolitical 219 inter-capitalist 110 international 154, 175 interstate 110 interterritorial 219 in labour market 116 and monopoly 131–45, 146, 218 and technology 92–3 and turnover time of capital 73, 99 and wages 135 competitive advantage 73, 93, 96, 112, 161 competitive market 131, 132 competitiveness 184 complementarity principle of 70 compounding growth 37, 49, 222, 227, 228, 233, 234, 235, 243, 244 perpetual 222–45, 296 computerisation 100, 120, 222 computers 92, 100, 105, 119 hardware 92, 101 organisational forms 92, 93, 99, 101 programming 120 software 92, 99, 101, 115, 116 conscience laundering 211, 245, 284, 286 Conscious Capitalism 284 constitutional rights 58 constitutionality 60, 61 constitutions progressive 284 and social bond between human rights and private property 40 US Constitution 284 and usurpation of power 45 consumerism 89, 106, 160, 192–5, 197, 198, 236, 274–7 containerisation 138, 148, 158 contracts 71, 72, 93, 207 contradictions Aristotelian conception of 4 between money and the social labour money represents 83 between reality and appearance 4–6 between use and exchange value 83 of capital and capitalism 68 contagious intensification of 14 creative use of 3 dialectical conception of 4 differing reactions to 2–3 and general crises 14 and innovation 3 moved around rather than resolved 3–4 multiple 33, 42 resolution of 3, 4 two modes of usage 1–2 unstable 89 Controller of the Currency 120 corporations and common wealth 54 corporate management 98–9 power of 57–8, 136 and private property 39–40 ‘visible hand’ 141–2 corruption 53, 197, 266 cosmopolitanism 285 cost of living 164, 175 credit cards 67, 133, 277 credit card companies 54, 84, 278 credit financing 152 credit system 83, 92, 101, 111, 239 crises changes in mental conceptions of the world ix-x; crisis of capital 4 defined 4 essential to the reproduction of capitalism ix; general crisis ensuing from contagions 14 housing markets crisis (2007–9) 18, 20, 22 reconfiguration of physical landscapes ix; slow resolution of x; sovereign debt crisis (after 2012) 37 currency markets, turbulence of (late 1960s) x customary rights 41, 59, 198 D Davos conferences 169 DDT 259 Debord, Guy: The Society of the Spectacle 236 debt creation 236 debt encumbrancy 212 debt peonage 62, 212 decentralisation 49, 142, 143, 144, 146, 148, 219, 281, 295 Declaration of Independence (US) 284 decolonisation 282, 288, 290 decommodification 85 deindustrialisation xii, 77–8, 98, 110, 148, 153, 159, 234 DeLong, Bradford 228 demand management 81, 82, 106, 176 demand-side management 85 democracy 47, 215 bourgeois 43, 49 governance within capitalism 43 social 190 totalitarian 220, 292 democratic governance 220, 266 democratisation 43 Deng Xiaoping x depressions 49, 227 1930s x, 108, 136, 169, 227, 232, 234 Descartes, René 247 Detroit 77, 136, 138, 148, 150, 152, 155, 159, 160 devaluation 153, 155, 162 of capital 233 of commodities 234 crises 150–51, 152, 154 localised 154 regional 154 developing countries 16, 240 Dhaka, Bangladesh 77 dialectics 70 Dickens, Charles 126, 169 Bleak House 226 Dombey and Son 184 digital revolution 144 disabled, the 202 see also handicapped discrimination 7, 8, 68, 116, 297 diseases 10, 211, 246, 254, 260 disempowerment 81, 103, 116, 119, 198, 270 disinvestment 78 Disneyfication 276 dispossession accumulation by 60, 67, 68, 84, 101, 111, 133, 141, 212 and capital 54, 55, 57 economies of 162 of indigenous populations 40, 59, 207 ‘land grabs’ 58 of land rights of the Irish 40 of the marginalised 198 political economy of 58 distributional equality 172 distributional shares 164–5, 166 division of labour 24, 71, 112–30, 154, 184, 268, 270 and Adam Smith 98, 118 defined 112 ‘the detail division of labour’ 118, 121 distinctions and oppositions 113–14 evolution of 112, 120, 121, 126 and gender 114–15 increasing complexity of 124, 125, 126 industrial proletariat 114 and innovation 96 ‘new international division of labour’ 122–3 organisation of 98 proliferating 121 relation between the parts and the whole 112 social 113, 118, 121, 125 technical 113, 295 uneven geographical developments in 130 dot-com bubble (1990s) 222–3, 241 ‘double coincidence of wants and needs’ 24 drugs 32, 193, 248 cartels 54 Durkheim, Emile 122, 125 Dust Bowl (United States, 1930s) 257 dynamism 92, 104, 146, 219 dystopia 229, 232, 264 E Eagleton , Terry: Why Marx Was Right 1, 21, 200, 214–15 East Asia crisis of 1997–98 154 dirigiste governmentality 48 education 184 rise of 170 Eastern Europe 115, 230 ecological offsets 250 economic rationality 211, 250, 252, 273, 274, 275, 277, 278, 279 economies 48 advanced capitalist 228, 236 agglomeration 149 of dispossession 162 domination of industrial cartels and finance capital 135 household 192 informal 175 knowledge-based 188 mature 227–8 regional 149 reoriented to demand-side management 85 of scale 75 solidarity 66, 180 stagnant xii ecosystems 207, 247, 248, 251–6, 258, 261, 263, 296 Ecuador 46, 152, 284 education 23, 58, 60, 67–8, 84, 110, 127–8, 129, 134, 150, 156, 168, 183, 184, 185, 187, 188, 189, 223, 235, 296 efficiency 71, 92, 93, 98, 103, 117, 118, 119, 122, 126, 272, 273, 284 efficient market hypothesis 118 Egypt 107, 280, 293 Ehrlich, Paul 246 electronics 120, 121, 129, 236, 292 emerging markets 170–71, 242 employment 37 capital in command of job creation 172, 174 conditions of 128 full-time 274 opportunities for xii, 108, 168 regional crises of 151 of women 108, 114, 115, 127 see also labour enclosure movement 58 Engels, Friedrich 70 The Condition of the English Working Class in England 292 English Civil War (1642–9) 199 Enlightenment 247 Enron 133, 241 environmental damage 49, 61, 110, 111, 113, 232, 249–50, 255, 257, 258, 259, 265, 286, 293 environmental movement 249, 252 environmentalism 249, 252–3 Epicurus 283 equal rights 64 Erasmus, Desiderius 283 ethnic hatreds and discriminations 8, 165 ethnic minorities 168 ethnicisation 62 ethnicity 7, 68, 116 euro, the 15, 37, 46 Europe deindustrialisation in 234 economic development in 10 fascist parties 280 low population growth rate 230 social democratic era 18 unemployment 108 women in labour force 230 European Central Bank 37, 46, 51 European Commission 51 European Union (EU) 95, 159 exchange values commodities 15, 25, 64 dominance of 266 and housing 14–23, 43 and money 28, 35, 38 uniform and qualitatively identical 15 and use values 15, 35, 42, 44, 50, 60, 65, 88 exclusionary permanent ownership rights 39 experts 122 exploitation 49, 54, 57, 62, 68, 75, 83, 107, 108, 124, 126, 128, 129, 150, 156, 159, 166, 175, 176, 182, 185, 193, 195, 208, 246, 257 exponential growth 224, 240, 254 capacity for 230 of capital 246 of capital accumulation 223, 229 of capitalist activity 253 and capital’s ecosystem 255 in computer power 105 and environmental resources 260 in human affairs 229 and innovations in finance and banking 100 potential dangers of 222, 223 of sophisticated technologies 100 expropriation 207 externality effects 43–4 Exxon 128 F Facebook 236, 278, 279 factories ix, 123, 129, 160, 174, 182, 247, 292 Factory Act (1864) 127, 183 famine 124–5, 229, 246 Fannie Mae 50 Fanon, Frantz 287 The Wretched of the Earth 288–90, 293 fascist parties 280 favelas ix, 16, 84, 175 feminisation 115 feminists 189, 192, 283 fertilisers 255 fetishes, fetishism 4–7, 31, 36–7, 61, 103, 111, 179, 198, 243, 245, 269, 278 feudalism 41 financial markets 60, 133 financialisation 238 FIRE (finance, insurance and real estate) sections 113 fishing 59, 113, 148, 249, 250 fixity and motion 75–8, 88, 89, 146, 155 Food and Drug Administration 120 food production/supply 3, 229, 246, 248, 252 security 253, 294, 296 stamp aid 206, 292 Ford, Martin 104–8, 111, 273 foreclosure 21, 22, 24, 54, 58, 241, 268 forestry 113, 148, 257 fossil fuels 3–4 Foucault, Michel xiii, 204, 209, 280–81 Fourier, François Marie Charles 183 Fourierists 18 Fourteen Points 201 France banking 158 dirigiste governmentality under de Gaulle 48 and European Central Bank 46 fascist parties 280 Francis, Pope 293 Apostolic Exhortation 275–6 Frankfurt School 261 Freddie Mac 50 free trade 138, 157 freedom 47, 48, 142, 143, 218, 219, 220, 265, 267–270, 276, 279–82, 285, 288, 296 and centralised power 142 cultural 168 freedom and domination 199–215, 219, 268, 285 and the good life 215 and money creation 51 popular desire for 43 religious 168 and state finances 48 under the rule of capital 64 see also liberty and freedom freedom of movement 47, 296 freedom of thought 200 freedom of the press 213 French Revolution 203, 213, 284 G G7 159 G20 159 Gallup survey of work 271–2 Gandhi, Mahatma 284, 291 Gaulle, Charles de 48 gay rights 166 GDP 194, 195, 223 Gehry, Frank 141 gender discriminations 7, 8, 68, 165 gene sequences 60 General Motors xii genetic engineering xii, 101, 247 genetic materials 235, 241, 251, 261 genetically modified foods 101 genocide 8 gentrification 19, 84, 141, 276 geocentric model 5 geographical landscape building a new 151, 155 of capitalism 159 evolution of 146–7 instability of 146 soulless, rationalised 157 geopolitical struggles 8, 154 Germany and austerity 223 autobahns built 151 and European Central Bank 46 inflation during 1920s 30 wage repression 158–9 Gesell, Silvio 35 Ghana 291 global economic crisis (2007–9) 22, 23, 47, 118, 124, 132, 151, 170, 228, 232, 234, 235, 241 global financialisation x, 177–8 global warming 260 globalisation 136, 174, 176, 179, 223, 293 gold 27–31, 33, 37, 57, 227, 233, 238, 240 Golden Dawn 280 Goldman Sachs 75, 239 Google 131, 136, 195, 279 Gordon, Robert 222, 223, 230, 239, 304n2 Gore, Al 249 Gorz, André 104–5, 107, 242, 270–77, 279 government 60 democratic 48 planning 48 and social bond between human rights and private property 40 spending power 48 governmentality 43, 48, 157, 209, 280–81, 285 Gramsci, Antonio 286, 293 Greco, Thomas 48–9 Greece 160, 161, 162, 171, 235 austerity 223 degradation of the well-being of the masses xi; fascist parties 280 the power of the bondholders 51, 152 greenwashing 249 Guantanamo Bay, Cuba 202, 284 Guatemala 201 Guevara, Che 291 Guggenheim Museum, Bilbao 141 guild system 117 Guinea-Bissau 291 Gulf Oil Spill (2010) 61 H Habermas, Jürgen 192 habitat 246, 249, 252, 253, 255 handicapped, the 218 see also disabled Harvey, David The Enigma of Capital 265 Rebel Cities 282 Hayek, Friedrich 42 Road to Serfdom 206 health care 23, 58, 60, 67–8, 84, 110, 134, 156, 167, 189, 190, 235, 296 hedge funds 101, 162, 239, 241, 249 managers 164, 178 Heidegger, Martin 59, 250 Heritage Foundation 143 heterotopic spaces 219 Hill, Christopher 199 Ho Chi Minh 291 holocausts 8 homelessness 58 Hong Kong 150, 160 housing 156, 296 asset values 19, 20, 21, 58 ‘built to order’ 17 construction 67 controlling externalities 19–20 exchange values 14–23, 43 gated communities ix, 160, 208, 264 high costs 84 home ownership 49–50 investing in improvements 20, 43 mortgages 19, 21, 28, 50, 67, 82 predatory practices 67, 133 production costs 17 rental markets 22 renting or leasing 18–19, 67 self-built 84 self-help 16, 160 slum ix, 16, 175 social 18, 235 speculating in exchange value 20–22 speculative builds 17, 28, 78, 82 tenement 17, 160 terraced 17 tract ix, 17, 82 use values 14–19, 21–2, 23, 67 housing markets 18, 19, 21, 22, 28, 32, 49, 58, 60, 67, 68, 77, 83, 133, 192 crisis (2007–9) 18, 20, 22, 82–3 HSBC 61 Hudson, Michael 222 human capital theory 185, 186 human evolution 229–30 human nature 97, 198, 213, 261, 262, 263 revolt of 263, 264–81 human rights 40, 200, 202 humanism 269 capitalist 212 defined 283 education 128 excesses and dark side 283 and freedom 200, 208, 210 liberal 210, 287, 289 Marxist 284, 286 religious 283 Renaissance 283 revolutionary 212, 221, 282–93 secular 283, 285–6 types of 284 Hungary: fascist parties 280 Husserl, Edmund 192 Huygens, Christiaan 70 I IBM 128 Iceland: banking 55 identity politics xiii illegal aliens (‘sans-papiers’) 156 illegality 61, 72 immigrants, housing 160 imperialism 135, 136, 143, 201, 257, 258 income bourgeois disposable 235 disparities of 164–81 levelling up of 171 redistribution to the lower classes xi; see also wages indebtedness 152, 194, 222 India billionaires in 170 a BRIC country 170, 228 call centres 139 consumerism 236 dismantlement of old ships 250 labour 107, 230 ‘land grabs’ 77 moneylenders 210 social reproduction in 194 software engineers 196 special economic zones 144 unstable lurches forward 10 indigenous populations 193, 202, 257, 283 dispossession of 40, 59, 207 and exclusionary ownership rights 39 individualism 42, 197, 214, 281 Indonesia 129, 160 industrial cartels 135 Industrial Revolution 127 industrialisation 123, 189, 229, 232 inflation 30, 36, 37, 40, 49, 136, 228, 233 inheritance 40 Inner Asia, labour in 108 innovation 132 centres of 96 and the class struggle 103 competitive 219 as a double-edged sword xii; improving the qualities of daily life 4 labour-saving 104, 106, 107, 108 logistical 147 organisational 147 political 219 product 93 technological 94–5, 105, 147, 219 as a way out of a contradiction 3 insurance companies 278 intellectual property rights xii, 41, 123, 133, 139, 187, 207, 235, 241–2, 251 interest compound 5, 222, 224, 225, 226–7 interest-rate manipulations 54 interest rates 54, 186 living off 179, 186 on loans 17 money capital 28, 32 and mortgages 19, 67 on repayment of loans to the state 32 simple 225, 227 usury 49 Internal Revenue Service income tax returns 164 International Monetary Fund (IMF) 49, 51, 100, 143, 161, 169, 186, 234, 240 internet 158, 220, 278 investment: in fixed capital 75 investment pension funds 35–6 IOUs 30 Iran 232, 289 Iranian Revolution 289 Iraq war 201, 290 Ireland dispossession of land rights 40 housing market crash (2007–9) 82–3 Istanbul 141 uprising (2013) 99, 129, 171, 243 Italy 51,161, 223, 235 ITT 136 J Jacobs, Jane 96 James, C.L.R. 291 Japan 1980s economic boom 18 capital in (1980s) 154 economic development in 10 factories 123 growth rate 227 land market crash (1990) 18 low population growth rate 230 and Marshall Plan 153 post-war recovery 161 Jewish Question 213 JPMorgan 61 Judaeo-Christian tradition 283 K Kant, Immanuel 285 Katz, Cindi 189, 195, 197 Kenya 291 Kerala, India 171 Keynes, John Maynard xi, 46, 76, 244, 266 ‘Economic Possibilities for our Grandchildren’ 33–4 General Theory of Employment, Interest, and Money 35 Keynesianism demand management 82, 105, 176 demand-side and debt-financed expansion xi King, Martin Luther 284, 291 knowledge xii, 26, 41, 95, 96, 100, 105, 113, 122, 123, 127, 144, 184, 188, 196, 238, 242, 295 Koch brothers 292 Kohl, Helmut x L labour agitating and fighting for more 64 alienated workers 125, 126, 128, 129, 130 artisan 117, 182–3 and automation 105 capital/labour contradiction 65, 66, 68–9, 146 collective 117 commodification of 57 contracts 71, 72 control over 74, 102–11, 119, 166, 171–2, 274, 291–2 deskilling 111, 119 discipline 65, 79 disempowering workers 81, 103, 116, 119, 270 division of see division of labour; domestic 196 education 127–8, 129, 183, 187 exploitation of 54, 57, 62, 68, 75, 83, 107, 108, 126, 128, 129, 150, 156, 166, 175, 176, 182, 185, 195 factory 122, 123, 237 fair market value 63, 64 Gallup survey 271–2 house building 17 housework 114–15, 192 huge increase in the global wage labour force 107–8 importance of workers as buyers of commodities 80–81 ‘industrial reserve army’ 79–80, 173–4 migrations of 118 non-unionised xii; power of 61–4, 71, 73, 74, 79, 81, 88, 99, 108, 118–19, 127, 173, 175, 183, 189, 207, 233, 267 privatisation of 61 in service 117 skills 116, 118–19, 123, 149, 182–3, 185, 231 social see social labour; surplus 151, 152, 173–4, 175, 195, 233 symbolic 123 and trade unions 116 trading in labour services 62–3 unalienated 66, 89 unionised xii; unpaid 189 unskilled 114, 185 women in workforce see under women; worked to exhaustion or death 61, 182 see also employment labour markets 47, 62, 64, 66–9, 71, 102, 114, 116, 118, 166 labour-saving devices 104, 106, 107, 173, 174, 277 labour power commodification of 61, 88 exploitation of 62, 175 generation of surplus value 63 mobility of 99 monetisation of 61 private property character of 64 privatisation of 61 reserves of 108 Lagos, Nigeria, social reproduction in 195 laissez-faire 118, 205, 207, 281 land commodification 260–61 concept of 76–7 division of 59 and enclosure movement 58 establishing as private property 41 exhausting its fertility 61 privatisation 59, 61 scarcity 77 urban 251 ‘land grabs’ 39, 58, 77, 252 land market 18, 59 land price 17 land registry 41 land rents 78, 85 land rights 40, 93 land-use zoning 43 landlords 54, 67, 83, 140, 179, 251, 261 Latin America ’1and grabs’ 58, 77 labour 107 reductions in social inequality 171 two ‘lost decades’ of development 234 lawyers 22, 26, 67, 82, 245 leasing 16, 17, 18 Lebed, Jonathan 195 Lee Kuan-Yew 48 Leeds 149 Lefebvre, Henri 157, 192 Critique of Everyday Life 197–8 left, the defence of jobs and skills under threat 110 and the factory worker 68 incapable of mounting opposition to the power of capital xii; remains of the radical left xii–xiii Lehman Brothers investment bank, fall of (2008) x–xi, 47, 241 ‘leisure’ industries 115 Lenin, Vladimir 135 Leninism 91 Lewis, Michael: The Big Short 20–21 LGBT groups 168, 202, 218 liberation struggle 288, 290 liberty, liberties 44, 48–51, 142, 143, 212, 276, 284, 289 and bourgeois democracy 49 and centralised power 142 and money creation 51 non-coercive individual liberty 42 popular desire for 43 and state finances 48 liberty and freedom 199–215 coercion and violence in pursuit of 201 government surveillance and cracking of encrypted codes 201–2 human rights abuses 202 popular desire for 203 rhetoric on 200–201, 202 life expectancy 250, 258, 259 light, corpuscular theory of 70 living standards xii, 63, 64, 84, 89, 134, 175, 230 loans fictitious capital 32 housing 19 interest on 17 Locke, John 40, 201, 204 logos 31 London smog of 1952 255 unrest in (2011) 243 Los Angeles 150, 292 Louis XIV, King of France 245 Lovelace, Richard 199, 200, 203 Luddites 101 M McCarthyite scourge 56 MacKinnon, Catherine: Are Women Human?


pages: 414 words: 119,116

The Health Gap: The Challenge of an Unequal World by Michael Marmot

active measures, active transport: walking or cycling, Affordable Care Act / Obamacare, Atul Gawande, Bonfire of the Vanities, Broken windows theory, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, centre right, clean water, congestion charging, correlation does not imply causation, Doha Development Round, epigenetics, financial independence, future of work, Gini coefficient, Growth in a Time of Debt, illegal immigration, income inequality, Indoor air pollution, Kenneth Rogoff, Kibera, labour market flexibility, longitudinal study, lump of labour, Mahatma Gandhi, meta analysis, meta-analysis, microcredit, New Urbanism, obamacare, paradox of thrift, race to the bottom, Rana Plaza, RAND corporation, road to serfdom, Simon Kuznets, Socratic dialogue, structural adjustment programs, the built environment, The Spirit Level, trickle-down economics, twin studies, urban planning, Washington Consensus, Winter of Discontent, working poor

The challenge is to rescue ‘freedom’ from a polarised political debate. Commentators of the political ‘right’ prize the freedom of the individual over the controls of the state. The economist Milton Friedman called his influential book calling for free markets and freedom from state intervention Free to Choose. Putting a more negative slant on a similar idea, Friedrich von Hayek called his book The Road to Serfdom. Once the state gets involved in economic decision-making, individual liberty is eroded and we are on the road to serfdom. When neoliberalism is looking for intellectual flag-bearers these two fit the bill. Libertarians, articulately represented by Robert Nozick in his Anarchy, State, and Utopia, argue that only a minimal state limited to protecting people against force and fraud and enforcing contracts is justified. Anything else is an intolerable erosion of freedom.


pages: 354 words: 118,970

Transaction Man: The Rise of the Deal and the Decline of the American Dream by Nicholas Lemann

Affordable Care Act / Obamacare, Airbnb, airline deregulation, Albert Einstein, augmented reality, basic income, Bernie Sanders, Black-Scholes formula, buy and hold, capital controls, computerized trading, corporate governance, cryptocurrency, Daniel Kahneman / Amos Tversky, dematerialisation, diversified portfolio, Donald Trump, Elon Musk, Eugene Fama: efficient market hypothesis, financial deregulation, financial innovation, fixed income, future of work, George Akerlof, gig economy, Henry Ford's grandson gave labor union leader Walter Reuther a tour of the company’s new, automated factory…, index fund, information asymmetry, invisible hand, Irwin Jacobs, Joi Ito, Joseph Schumpeter, Kenneth Arrow, Kickstarter, life extension, Long Term Capital Management, Mark Zuckerberg, mass immigration, means of production, Metcalfe’s law, money market fund, Mont Pelerin Society, moral hazard, Myron Scholes, new economy, Norman Mailer, obamacare, Paul Samuelson, Peter Thiel, price mechanism, principal–agent problem, profit maximization, quantitative trading / quantitative finance, Ralph Nader, Richard Thaler, road to serfdom, Robert Bork, Robert Metcalfe, rolodex, Ronald Coase, Ronald Reagan, Sand Hill Road, shareholder value, short selling, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, TaskRabbit, The Nature of the Firm, the payments system, Thomas Kuhn: the structure of scientific revolutions, Thorstein Veblen, too big to fail, transaction costs, universal basic income, War on Poverty, white flight, working poor

It was a kind of sweepstakes, with many contestants—the times demanded it. People like Drucker and Polanyi had witnessed two world wars, the Great Depression, and the rise of the Soviet Communists, the Nazis, and the Fascists (not to mention the advent of the corporation), and they had seen the thriving societies where they had been born fall into ruin. In the space of only a few years in the early 1940s Friedrich Hayek published The Road to Serfdom, and Joseph Schumpeter published Capitalism, Socialism, and Democracy; both authors were also from Vienna, and Drucker and Polanyi knew them. James Burnham, an American ex-communist, published The Managerial Revolution, a dire warning that professional business bureaucrats, comfortable with government regulation, were becoming the ruling class in modern society (Burnham devoted several pages to summarizing The Modern Corporation and Private Property).

Boone Pincus, Mark; political goals of Pioneers of Finance (video) Pizzo, Tony planned economies Plepler, Andrew pluralism; Bentley on; conception of politics in; critiques of; faux; humility and plutocracy Polanyi, Karl police; conservative empowerment of; racism of Polish Americans politics: economics and; pluralistic conception of; Silicon Valley and; suspicion of; Transaction Man mentality in; violence in; see also community organizing; Congress; federal government; specific administrations; political parties Pontiacs Port Huron Statement (Hayden) positive, as economic term Positive Theory of the Normative Virtues, A (Jensen and Erhard) Power (Berle) predatory lending price setting: by corporations; by government; by unions prime brokerage Prime Reserve Fund Princeton principal-agent problem Priorities USA private equity; GM and; gone public; Morgan Stanley competing with; mortgaged-backed securities and; takeovers by Process of Government, The (Bentley) Procter & Gamble Promise of American Life, The (Croly) prudent man rule public schools Pujo, Arsène Purcell, Philip Putney School, The “Putting Integrity into Finance” (Jensen and Erhard) racism; in housing; in policing railroads; regulation and Ranieri, Lewis Rattner, Steven Reagan, Ronald Reardon, Mike Reed, John regulation: of corporations; of finance; of Internet; post-2008; as Socialist; see also specific agencies Reich, Charles Reich, Robert Republicans: Clinton and; deregulation and; donors and; liberal repurchase market research labs, corporate retirement benefits, see pension funds; Social Security Administration Reuther, Walter Rheem Riesman, David Riggs, Austen Ripley, William Z. RJR Nabisco Road to Serfdom, The (Hayek) robber barons; see also specific people Robert Taylor Homes Rock, Arthur Rockefeller, David Rockefeller, John D. Rockefeller, Nelson Rockwell, George Lincoln Rogers, Carl Romney, Mitt Roosevelt, Franklin; Brain Trust of; campaign of; inauguration of; Morgan Stanley and; Supreme Court and; unknown views of Roosevelt, Sara Roosevelt, Theodore Rosenberg, John Paul, see Erhard, Werner Rothman, Simon Rubin, Robert; at Goldman Sachs; on National Economic Council; as secretary of the Treasury passim Rule 415 Rush, Bobby Russell, Bertrand Russia Rutter, Deanna Ruth St.


pages: 772 words: 203,182

What Went Wrong: How the 1% Hijacked the American Middle Class . . . And What Other Countries Got Right by George R. Tyler

8-hour work day, active measures, activist fund / activist shareholder / activist investor, affirmative action, Affordable Care Act / Obamacare, bank run, banking crisis, Basel III, Black Swan, blood diamonds, blue-collar work, Bolshevik threat, bonus culture, British Empire, business cycle, business process, buy and hold, capital controls, Carmen Reinhart, carried interest, cognitive dissonance, collateralized debt obligation, collective bargaining, commoditize, corporate governance, corporate personhood, corporate raider, corporate social responsibility, creative destruction, credit crunch, crony capitalism, crowdsourcing, currency manipulation / currency intervention, David Brooks, David Graeber, David Ricardo: comparative advantage, declining real wages, deindustrialization, Diane Coyle, disruptive innovation, Double Irish / Dutch Sandwich, eurozone crisis, financial deregulation, financial innovation, fixed income, Francis Fukuyama: the end of history, full employment, George Akerlof, George Gilder, Gini coefficient, Gordon Gekko, hiring and firing, income inequality, invisible hand, job satisfaction, John Markoff, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, labor-force participation, laissez-faire capitalism, lake wobegon effect, light touch regulation, Long Term Capital Management, manufacturing employment, market clearing, market fundamentalism, Martin Wolf, minimum wage unemployment, mittelstand, moral hazard, Myron Scholes, Naomi Klein, Northern Rock, obamacare, offshore financial centre, Paul Samuelson, pension reform, performance metric, pirate software, plutocrats, Plutocrats, Ponzi scheme, precariat, price stability, profit maximization, profit motive, purchasing power parity, race to the bottom, Ralph Nader, rent-seeking, reshoring, Richard Thaler, rising living standards, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, Sand Hill Road, shareholder value, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, sovereign wealth fund, Steve Ballmer, Steve Jobs, The Chicago School, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, too big to fail, transcontinental railway, transfer pricing, trickle-down economics, tulip mania, Tyler Cowen: Great Stagnation, union organizing, Upton Sinclair, upwardly mobile, women in the workforce, working poor, zero-sum game

Simultaneously, the business community was transformed into a victim needing to be set free from government regulation. As Reagan said many times, “Government is not the solution to our problems; government is the problem.” An important economic debate on the role of government regulation in the early twentieth century involved the Austrian economist and philosopher Friedrich Hayek, author of The Road to Serfdom, who famously wanted dangerous government constrained.58 His opponent was John Maynard Keynes, who was in “deeply moved agreement” with Hayek’s concern, argues economic historian Sylvia Nasar, although much more willing to endorse careful government initiatives and regulation of business.59 Hayek’s concern was not targeted just at the collectivists, among them Karl Marx, but more broadly at the dangers posed by regulatory capture of the sort which emerged later in the Reagan era.

They believed that a dollar spent should be paid with taxes. Not President Reagan; his philosophy of pursuing deficits of choice created enormous heartburn for the fiscally prudent of all political persuasions, especially among economists. One of the greatest economic rivalries of the twentieth century, for example, pitted the Englishman John Maynard Keynes against Friedrich Hayek of the Austrian school. Hayek not only authored The Road to Serfdom, cautioning against overbearing and irresponsible government, he gained fame for predicting the great crash of 1929.13 Like Smith, Keynes believed that markets serving careless mankind require oversight by careful and prudent regulators. Hayek distrusted central regulation of any sort, preferring a government bound by strict rules.14 The Keynes viewpoint was explained this way by Washington Post columnist David Ignatius: “It wasn’t that he liked government spending, but that he recognized that markets sometimes overreact—amplifying the fears and preferences of individual behavior that makes everyone worse off.”15 For that and other insights, Keynes became the greatest economist of the twentieth century, even acknowledged by conservatives like N.

(economist), 143, 149 Harvester Judgement (Australia), 57, 308 Harvey, Campbell R., 156, 157 (chart), Haskins, Ron (Brookings), 133, 263, 301, 402 Hastings, Max (historian), 344–45, 371–72 Hatton, Erin (sociologist), 453 Haunhorst, Charlotte (Der Spiegel reporter), 357 Hausman, Jerry A. (economist), 352 Havnes, Tarjei (University of Oslo), 299, 415 Hayek, Friedrich (economist) about, 12, 37, 73, 79, 202–3, 219–20 The Road to Serfdom, 37, 202 Hayward, Tony (former CEO, British Petroleum), 110 Hazlitt, Henry (economist), 219, 260 Heckman, James (Nobel Laureate), 447, 448 Heron, Randall (University of Iowa), 141 Hetherington, Marc J. (author), 183 Hilton, Andrew (Centre for the Study of Financial Innovation), 219 Hindery, Leo (former chief executive, AT&T Broadband), 100 Hlatshwayo, Sandile (economist), 229 Hobbes, Thomas, 26, 92, 148 Hoffman, David E.


State-Building: Governance and World Order in the 21st Century by Francis Fukuyama

Asian financial crisis, Berlin Wall, Bretton Woods, centre right, corporate governance, demand response, Doha Development Round, European colonialism, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, George Akerlof, Hernando de Soto, information asymmetry, liberal world order, Live Aid, Nick Leeson, Pareto efficiency, Potemkin village, price stability, principal–agent problem, rent-seeking, road to serfdom, Ronald Coase, structural adjustment programs, technology bubble, The Market for Lemons, The Nature of the Firm, transaction costs, Washington Consensus, Westphalian system

Presidents, Parliaments, and Policy (Cambridge, England: Cambridge University Press). Harriss, John, and Hunter, Janet, et al. 1995. The New Institutional Economics and Third World Development (London: Routledge). Hartcher, Peter. 1998. The Ministry (Boston: Harvard Business School Press). Hassner, Pierre 2002. “Definitions, Doctrines, Divergences,” National Interest No. 69 (fall): 30–34. Hayek, Friedrich A. 1956. The Road to Serfdom (Chicago: University of Chicago Press). ——. 1945. “The Use of Knowledge,” American Economic Review 35(4): 519–30. Heiberg, Marianne, 1994. Subduing Sovereignty: Sovereignty and the Right to Intervene (London: Pinter Publishers). Herbst, Jeffery. 2000. States and Power in Africa (Princeton, NJ: Princeton University Press). Hirschman, Albert O. 1970. Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States (Cambridge, MA: Harvard University Press).


pages: 188 words: 40,950

The Case for Universal Basic Income by Louise Haagh

back-to-the-land, basic income, battle of ideas, Bertrand Russell: In Praise of Idleness, bitcoin, blockchain, cryptocurrency, delayed gratification, Diane Coyle, full employment, future of work, housing crisis, income inequality, job-hopping, land reform, low skilled workers, Mark Zuckerberg, mini-job, moral hazard, new economy, offshore financial centre, precariat, race to the bottom, rent control, road to serfdom, Silicon Valley, Skype, smart contracts, trickle-down economics, universal basic income

., 2016, ‘Competition States in the Neo-liberal Era’, Competition & Change, 20 (2), 122–44. 17. https://leftfootforward.org/2018/02/the-uk-is-mired-in-222bn-of-pfi-debt-heres-how-we-can-take-on-the-public-finance-fat-cats/ 18. https://www.socialeurope.eu/reshaping-fiscal-policies-in-europe-enforcing-austerity-attacking-democracy 19. Titmuss, R.M., 1968, Commitment to Welfare, London: Allen & Unwin, p. 134. 20. Titmuss, R.M., 1962, Income Distribution and Social Change, London: Allen and Unwin, p. 198. 21. Hayek supported ‘the certainty of a given minimum of sustenance for all’, but not ‘the security of a given standard of life’. Von Hayek, F., The Road to Serfdom, 1944, London: Routledge Classics, p. 124. 22. Murray, C., 2006, In Our Hands: A Plan to Replace the Welfare State, Washington, DC: AEI Press. 23. Zuckerberg, M., 2017, Facebook entry, 5 July. 24. Russell, B., 1935, In Praise of Idleness and Other Essays, London: Routledge, pp. 90–2. 25. A good summary is Offe, C., 2009, ‘Basic Income and the Labour Contract’, Analyse & Kritik, 01, 49–79. 26.


pages: 134 words: 41,085

The Wake-Up Call: Why the Pandemic Has Exposed the Weakness of the West, and How to Fix It by John Micklethwait, Adrian Wooldridge

Admiral Zheng, Affordable Care Act / Obamacare, basic income, battle of ideas, Berlin Wall, Bernie Sanders, Boris Johnson, carried interest, cashless society, central bank independence, Corn Laws, coronavirus, COVID-19, Covid-19, creative destruction, David Ricardo: comparative advantage, Deng Xiaoping, Dominic Cummings, Donald Trump, Etonian, failed state, Fall of the Berlin Wall, global pandemic, Internet of things, invisible hand, Jones Act, knowledge economy, laissez-faire capitalism, McMansion, night-watchman state, offshore financial centre, oil shock, Panopticon Jeremy Bentham, Parkinson's law, pensions crisis, QR code, rent control, road to serfdom, Ronald Reagan, school vouchers, Shoshana Zuboff, Silicon Valley, smart cities, trade route, universal basic income, Washington Consensus

There was racism, snobbery, and absurd amounts of hypocrisy in this: the leafy suburbs never complained about the public subsidies for their mortgages, their children’s free university education, or the local theater group. But bourgeois frustration with Leviathan rekindled the intellectual heirs of John Stuart Mill. The free-market right had never actually disappeared. Friedrich Hayek’s The Road to Serfdom, published in wartime London in 1944, was a bestseller on both sides of the Atlantic. In 1947, the so-called Austrian school of free marketeers met at Mont Pelerin to lay the foundations of a reverse Fabian Society. In the 1950s, the movement’s center of gravity moved from Europe to Hayek’s new home, the University of Chicago, where a group of economists explained how bureaucrats, even if they were well intentioned (which they often weren’t), could do more harm than good.


pages: 421 words: 125,417

Common Wealth: Economics for a Crowded Planet by Jeffrey Sachs

agricultural Revolution, air freight, back-to-the-land, British Empire, business process, carbon footprint, clean water, colonial rule, corporate social responsibility, correlation does not imply causation, creative destruction, demographic transition, Diane Coyle, Edward Glaeser, energy security, failed state, Gini coefficient, global pandemic, Haber-Bosch Process, income inequality, income per capita, Intergovernmental Panel on Climate Change (IPCC), intermodal, invention of agriculture, invention of the steam engine, invisible hand, Joseph Schumpeter, knowledge worker, labor-force participation, low skilled workers, mass immigration, microcredit, oil shale / tar sands, old age dependency ratio, peak oil, profit maximization, profit motive, purchasing power parity, road to serfdom, Ronald Reagan, Simon Kuznets, Skype, statistical model, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, transaction costs, unemployed young men, War on Poverty, women in the workforce, working-age population

A contrasting view, very popular in Sweden and some other social welfare states, holds that precisely because capitalism is so turbulent, a social safety net is vitally needed to win the public’s support for an economy in constant flux. The argument goes that without social insurance, the public would be likely to demand protectionism and nonmarket guarantees of employment. Another major criticism of the social welfare state from the right is that it represents a direct threat to personal freedoms. Economist Friedrich Hayek argued in his influential work The Road to Serfdom that large-scale involvement of the state in the economy would lead to the collapse of individual freedoms. Although he first aimed those criticisms at the centrally planned communist economies and their controls on industry, he later extended them to the so-called social democracies with their expensive welfare policies. The U.S. and European political right wing regularly depicts social spending as a threat to economic efficiency and personal liberties.

New Scientist, July 28, 2007. Hansen, James, et al. “Climate Change and Trace Gases.” Philosophical Transactions of the Royal Society A 365 (May 2007): 1925–54. Hansen, James, et al. “Dangerous Human-Made Interference with Climate: a GISS ModelE Study.” Atmospheric Chemistry and Physics (2007): 2287–312. Hardin, Garrett. “The Tragedy of the Commons.” Science 162 (1968): 1243–48. Hayek, Friedrich A. von. The Road to Serfdom. Chicago: University of Chicago Press, 1944. Hiro, Dilip. Blood of the Earth: The Battle for the World’s Vanishing Oil Resources. New York: Nation Books, 2006. Hirschman, Albert. The Rhetoric of Reaction: Perversity, Futility, Jeopardy. Cambridge, MA: The Belknap Press of Harvard University Press, 1991. Hopkin, Michael. “Oceans in Trouble as Acid Levels Rise.” Nature News, June 30, 2005.


pages: 414 words: 121,243

What's Left?: How Liberals Lost Their Way by Nick Cohen

anti-communist, Ayatollah Khomeini, Berlin Wall, Boycotts of Israel, British Empire, centre right, Etonian, failed state, Fall of the Berlin Wall, Farzad Bazoft, feminist movement, haute couture, kremlinology, liberal world order, light touch regulation, mass immigration, moral hazard, Naomi Klein, plutocrats, Plutocrats, post-industrial society, profit motive, Ralph Nader, road to serfdom, Ronald Reagan, Scientific racism, sensible shoes, the scientific method, union organizing, upwardly mobile, Yom Kippur War

In the name of acting in the interests of the working class, academics and civil servants designed vast programmes of social relief and planners ordered the destruction of Victorian cities. The elite of the time held the public service ethos to be far superior to the grubby struggle for profit, and so did many others. In 1944 when Friedrich Hayek published what was to be the bible of the free-market right of the Seventies, The Road to Serfdom, hardly anyone took him seriously. The Wall Street Crash of 1929 and the Great Depression of the Thirties had made capitalism obsolescent. Everyone, including conservatives, believed central planners should fight the Second World War. George Orwell sympathized with Hayek’s fears that centralized regulation would strangle liberty but thought his ‘able defence of capitalism’ was a waste of time.

Scott 98–9 Armstrong, Sir William 56 Ash, Lucy 121 al-Askari, Abdel-Qadir 51 Astor, Lord and Lady 217 asylum seekers 7 Atta, Mohamed 83, 255–7, 260, 269, 273 Auden, W.H. 122, 219, 220, 223, 224–5, 238, 335, 358–9 Australia 258 Axelrod, Pavel 103 al-Ayyeri, Yussuf 270 Aziz, Hind 34 Aziz, Tariq 292 Baath Party (Iraq) 24, 25, 33–4, 352, 365 alliance with Islamists after war to form ‘insurgency’ 8, 32, 286–7 and conspiracy theory 35–6 ideology 33, 35 and indoctrination 33–5, 41 and Iraqi communists 37–8 killings by 4–5, 31–2, 37 program against Iraqi Jews 36–7 purges of by Saddam 35, 42–4 seizure of power 22 and Soviet Union 37–8, 40 tyrannizing of Iraqis and forces of oppression 7, 33, 37, 41–2 Baath Party (Syria) 31 backlash politics 196–7 Bad Writing Contest 99–100 Bagehot, Walter English Constitution 189–90 al-Bakr, Ahmad Hasan 36 Baldwin, Stanley 220 Bali bar bombings (2002) 258 al-Banna, Hassan 265–6 al-Barak, Fadhil 35, 36 Barruel, L’Abbé Augustin 340, 341, 343, 345, 346 Memoirs to Serve for a History of Jacobinism 340 Battle of Britain 225 Baudrillard, Jean 110 Bazoft, Farzad 5, 53 BBC 159, 244, 304, 367, 368, 369, 379 Beard, Mary 274–5 Bell, Clive 228, 235 Bellow, Saul Ravelstein 80 Benaissa, Mohamed 352 Benenson, Peter 322 Benn, Hilary 367 Benson, Ophelia 101 Berman, Paul 249, 250, 312 Beslan school hostage crisis (2004) 259–60 Betjeman, John 221 Bevin, Ernie 231, 232, 233, 246 bin Laden, Osama 257, 258, 261, 267–8, 276, 365, 367 Birthler, Marianne 331 Blair, Cherie 205 Blair, Tony 54, 114, 185, 201, 277, 290, 297, 359, 364, 379 and Amnesty 322–3 and Iraq war 8, 202, 203, 280, 284, 285, 297, 300 and Kosovo war 151 and 9/11 257 Blakeney, Kate 63, 66 Bleasdale, Alan 184 blogosphere 270–1 Bloomsbury Group 192, 227, 228, 229, 235 Blum, Leon 249, 251 Blythe, Ronald The Age of Illusion 230 Boggan, Steve 40–1 Bosnian war 10, 127–51, 153–4, 168, 172, 370 atrocities committed 128, 129, 130, 131–2, 134 denial of crimes committed 171–8 ending of 151 lack of international help 135 Omarska prison camp 129, 130–1, 174 photograph of ‘emaciated men behind barbed wire’ 134, 174–5 pressure on Major government from Americans to intervene 145–9 prevention of action in by Major government 139–43, 144–5, 153–5, 168 siege of Sarajevo 153–4 Srebrenica massacre (1995) 130–1, 149–50, 171, 177–8 Trnopolje camp 131–4, 171, 174, 175–6 Bridget Jones’s Diary 313 Britain 138–9 and Euroscepticism 139 possibility of Bolshevik revolution in 1970s 55–7 prevention of action in Bosnian War by Major government 139–41, 144–5, 153–5, 168 radicalism in 58 trade unions 298–9 British Empire 162 British Muslims 369–72, 378 British National Party (BNP) 294, 310–11 British People’s Party 235–6 Brittain, Vera 248–9 Brown, Gordon 201, 297 Buchan, James High Latitudes 95 Burchill, Julie 207 Buruma, Ian and Margalit, Avishai Occidentalism 268 Bush, George (senior) 169 Bush, George W. 8, 9, 83, 85, 201, 209, 274, 284, 320, 321, 358, 359, 365, 373 Butler inquiry 285 Butler, Judith 100, 111 Butt, Hassan 371–2 Caldwell, Christopher 336–7 Cambodia 93, 166–7 Campaign for Nuclear Disarmament 230–1 Campbell, Professor David 176 Campbell, Sir Menzies 74 Camus, Albert 29 capitalism 22, 119–20, 195 Carey, Professor John 189 Castro, Fidel 93, 293 ‘Cato’ 225 Celebrity Big Brother 288–90 centralized regulation 194–5 Chamberlain, Houston Stewart 227, 266–7 Chamberlain, Neville 144, 217–18, 220, 227, 233 Chamcha, Saladin 184 Chechnya 259–60 Chemical Ali see al-Majid, Ali Hassan China 93, 94, 117 Chirac, Jacques 150 Chomsky, Noam 14, 155–62, 164–8, 170, 179–80, 258, 376 American Power and the New Mandarins 156–7 anti-Americanism 156–7 background 155–6 and Bosnian War atrocities denial 178–9 condemning of Kosovo War 170–1 and Hiroshima 156, 157 and Holocaust denial theory 164–6 and Khmer rouge killings in Cambodia 167–8 and media propaganda 157–8, 160–1 support of Johnstone’s Fools’ Crusade 178, 179 Christian Democrats 14 Churchill, Caryl 184 Churchill, Winston 2, 33, 218, 219, 245, 246 Clearances (Scottish Highlands) 118 Cliff, Tony 54 Clinton, Bill 83, 87, 145, 150, 201, 211, 273 Clwyd, Ann Saddam’s Iraq 40 Cockburn, Alexander 73 Coe, Jonathan 184 Cohn, Norman 345 Cohn, Professor Werner 174 Cold War 4, 88, 97, 143 Collard, Dudley 242 Collins, Michael 205–6 Columbia Journalism Review 159–60 communalism 309 communism 3–4, 89, 373–4 collapse of 87–8 and fascism 89, 237 killing of by communists 248 Communist Party (Britain) 238 attempt to rally support for Hitler after Soviet-Germany pact 239–46 People’s Convention 239, 242–6, 247 support of war effort after invasion of Soviet Union by Germany 246 Communist Party (Iraq) 37–8 Conquest, Robert 29, 103 Conservatives 2–3, 10, 53, 113 conspiracy theory 339–40 and Freemasons 35, 340–2, 345–6 and Jews 35–6, 65, 77, 343–6, 350–1 consumer leftism 373–6 consumerism 12, 221 Cook, Robin 285, 313 Cooper, Robert 136 council house waiting lists 200, 201 Critical Terms for Literary Study 100 Croatia 127 Crusaders 340 cults, political 60–3 Daily Mail 197 Daily Worker 240–1 Dalrymple, Theodore 229 Darfur 50, 117, 381 Dawkins, Richard 318 Dawson, Geoffrey 217 de Beauvoir, Simone 103 de Pauw, Cornelius 262–3 Declaration of Independence 317, 343 Deichmann, Thomas 174–5, 176, 177 democracy 193–4, 268, 342, 362, 365, 379, 380 fascism’s case against 268–70 Democrats 14, 211 Dench, Geoff 199 denial 162–3 and Bosnian war 171–8 and fascists 163–4 Holocaust 163–5, 179 Denmark 212 al-Din, Salah 33 Disneyland 110 Dole, Bob 145, 147, 150 Domvile, Admiral Sir Barry 235, 236 Dorfman, Ariel 283 Dostoevsky 67 dowry-murders 101, 102, 121–3 Drabble, Margaret 263 Dutton, Denis 99–100 Dzandarova, Zalina 259 East End/East Enders 198–201 East Timor 161, 170, 258, 275, 283 economists 114 education 204–5 Egypt 349, 350 Eliot, George 333 Eliot, T.S. 219 Empire (Hardt and Negri) 109–10 Engels, Friedrich 158 ‘Englishness’ 206 Enlightenment 35, 106, 109, 343, 355, 357 environment movement 356–7 epistemic relativism 105–6 Equity 57–8 Estikhbarat 40 ethnic cleansing 128, 365 ethnic minorities 11 eugenics 198 European Court of Human Rights 136, 212 European Exchange Rate Mechanism 3, 139 European Social Forum (2003) 115, 119–20, 301 European Union 10, 127, 135–8, 212, 214, 365, 379 Euroscepticism 139 Euston Manifesto 361–3 Fabians 190, 192, 193, 198 Fahrenheit 9/11 321–2 Fallacy of the Superior Virtue of the Oppressed 78–9 false consciousness, theory of 158–9, 374–5 Falwell, Jerry 261 family attempt to weaken influence of by political cults 61 fascism/fascists 3–4, 10, 268 case against democracy 268–70 and communism 89, 237 and denial 163–4 Faurisson, Robert 163–5 feminism/feminists 12, 90–1, 111, 112 in India 120 Ferguson, Euan 282–3 First World War 220 Fischer, Joschka 332 Fisk, Robert 271–2 ‘fisking’ 271 Foot, Michael 225, 232–3 Forster, E.M. 244 Foucault, Michel 107–8, 109, 377, 379 Fox, Dr Myron L. 97–8 Fox, John 146–7 France 47, 206, 212, 218, 281 Franco, General Francisco 1, 35, 50, 346 Frank, Thomas 209, 210–11, 212 Franks, General Tommy 72 Frayn, Michael 182–3 Freemasons 35, 38, 269, 340–2, 345–6, 350, 351 French left 249, 327 French Revolution 42, 355 French socialists and Hitler 249–52 Gaddafi, Colonel 68 Galbraith, Peter 50, 52 Galloway, George 74, 290–3, 300–1, 302, 310 game theory 97 Gaullists 14 Gavron, Kate 199 genocide against Iraqi Kurds 5, 7, 24, 48–9, 50–2, 127 defined by United Nations 129 Geras, Norman 325 Germany anti-war demonstrations 281 and Iraq war 329 see also Nazi Germany Globalise Resistance 296 globalization 141, 374, 376 see also anti-globalization movement Gold Standard 219 Gollancz, Victor 240–1 Goodlad, Alistair 153 Gorazde (Bosnia) 154 Gore, Al 273 Gorst, Irene 59–60 Gourlay, Walter 215 grammar schools 205 Grant, Ted 54 Great Depression 195, 218, 220–1, 356 Great Leap Forward 49 Greece anti-war demonstrations 281 Green movement 119, 356 Griffiths, James 234 Griffiths, Richard 236 Griffiths, Trevor 55 The Party 55–6, 57 Guantanamo Bay 324 Guardian 117, 179–80, 294, 304, 337–8 Guevara, Che 93 Guilty Men 225–7, 240 Gulf War (1991) 71, 89 Halabja 50–2, 292 Hamas 259 constitution 348–9 Hamza, Abu 351 Hardt, Michael and Negri, Antonio Empire 109–10 Hare, Sir David 184, 206 Harrington, Michael 82 Hawley, Caroline 46 Hayek, Friedrich 294 The Road to Serfdom 194–5 Healy, Gerry 53–5, 57–9, 61, 63–4, 66–8, 301 hegemonic 110–12 Heidegger, Martin 263–4 heroes/heroines 19–20 Herman, Edward S. 166, 168, 170, 176 Hezbollah 293–4, 366 Hiroshima 156, 157 Hitchens, Christopher 247, 253 Hitler, Adolf 4, 35, 49, 50, 246, 248, 250 appeasement of by Chamberlain 217–18, 220, 227, 233, 233–4, 276 and France 251 and Jews 30, 346 meeting with Lansbury 234 Mein Kampf 345, 346 pact with Stalin 358 rise of 231 seen as a bulwark against communism 217 Hizb-ut-Tahir 370 Ho Chi Minh 93 Hoare, Marko Attila 169–70, 171 Hobsbawm, Eric 103, 185, 241–2 Hoggart, Simon 299–300 Hollinghurst, Alan The Line of Beauty 184 Holocaust 336 denial of 163–5, 179 homosexuality 11, 105, 111 ‘honour killings’ 378 Horta, Hose Ramos 283–4 Houellebecq, Michel 213 Howard, Peter 225 human rights 39–40, 88, 106, 143, 312, 313, 316, 324–5, 362 Human Rights Watch 52, 312, 325–6 Hume, Mick 176 Hurd, Douglas 140–1, 142, 143, 144, 145, 147, 169, 370 Husain, Ed The Islamist 369–70 Hussain, Azfar 101–2, 104 Hussein, Saddam see Saddam Hussein el-Husseini, Haj Amin 347–8 Huxley, Aldous 235 identity politics 376–7 Independence Party 294 Independent 304, 320, 335, 366 Index on Censorship 335 India 75, 120–1, 162 dowry-murders and persecution of women 101, 102, 121–3 feminist movement 120 partition of 143 Indict 292 individualism 356 Indochina 166 Indonesia 81 Information Research Bureau 246 Institute for Public Policy Research 207 international criminal states 313 International Criminal Tribunal for the Former Yugoslavia 130 International Monetary Fund 117 Internet 270–1 Iran 22, 25–6, 81, 82, 374, 377, 379 revolution (1979) 26–7, 107–8, 380 war against Iraq 28, 32, 44, 47–8 women in 357–8 Iraq 4–6, 7, 20–6, 40, 72–3 alliance between Baathists and Islamists after war to form ‘insurgency’ 8, 32, 286–7 American assistance in war with Iran 46–8 Baath Party regime see Baath Party genocide of Kurds 5, 7, 24, 48–9, 50–2, 127 invasion of Kuwait 6, 70, 72–3 ‘oil-for-food’ programme 72 pull back by America in (1991) 71, 72, 80, 81, 87 sanctions issue 74–5 seen as only country to take on Israel 76–7 shift in attitude towards by left 30, 74–5, 89–91 and Soviet Union 37–8 terrorizing of Shia majority by Sunni Islamists 287 trade union movement 297–8, 301, 302–3 war against Iran 28, 32, 44, 47–8 weapons sales to 47 and Workers’ Revolutionary Party 65–6, 67, 68 see also Saddam Hussein Iraq Memory Foundation 330 Iraq war (2003) 4, 7–9, 84, 299–300, 357, 364–5, 381 aftermath 285–6, 381 anti-war movement/ demonstrations 169–70, 280–311, 313–14, 357 and Blair 8, 202, 203, 280, 284, 285, 297, 300 liberal opposition to 46, 202, 312–32 Iraqi Communist Party 334 Iraqi Federation of Trade Unions 298, 302 Ireland 212 anti-war demonstrations 281 Irvin, Jeremy 129, 133 Isherwood, Christopher 219, 224, 233 Islam 9, 107, 367 Islamic Combatant Group 258–9 Islamism/Islamists 260, 261–2, 264–6, 267, 269–70, 273, 343–4, 347, 352, 360, 365–6, 368, 371–2, 374, 381 Israel 21, 76, 77, 170, 335, 336, 338–9, 346, 347, 351–2, 353 Italy anti-war demonstration 280 Izetbegovic, Alija 154 jahilyya 265, 267 Jamaat-i-Islaami party 266, 351, 369, 371, 377 Jarman, Derek 184 Jarrow hunger marches 218 Jehovah Witnesses 296 Jelacic, Nerma 172–3 Jewish Chronicle 65 Jews 10, 35, 36, 269 attack on by Iraq’s Baath Party 36–7 conspiracy theory involving 35–6, 65, 77, 343–6, 350–1 and Hitler 30, 346 and Protocols of the Learned Elders of Zion 36, 344, 345, 346, 349 and tsarist Russia 344–5 see also antisemitism Johnson, Hewlett 243 Johnstone, Diana Fools’ Crusade 176–7, 178 Jong-Il, Kim 39 journalists 159–60 July bombings (London) 10, 257–8 Kagan, Robert 136, 315–16, 317 Kanaan, Jean-Sélim 326 Kansas 209, 209–10 Karadzic, Radovan 128, 129, 131, 169 Kelikian, Dr Hampar 148 Kenneth, John 50 Keynes, John Maynard 114, 228, 377 Economic Consequences of the Peace 228 Khan, Irene 324 Khan, Mohammad Sidique 258 Khmer Rouge 167, 167–8 Khomeini, Ayatollah 27, 28, 70, 107, 108, 184 Kianouri, Noureddin 27 Kirwan, Celia 246 Kissinger, Henry 47 Klein, Naomi No Logo109 Knights Templars 340–1, 342 Kosovo war 10, 151, 168, 170–1 Kouchner, Bernard 326 Kumari, Ranjana 121 Kurds 36 attempts to rally international support for 50 genocide against by Saddam Hussein 5, 7, 24, 48–9, 50–2, 127 use of poison gas against at Halabja 50–2, 292 Kuwait invasion of by Iraq (1990) 6, 70 Labour Party 93, 182, 220, 231–3 see also Blair, Tony; New Labour Labour Party conference (2004) 297, 299–300 Lader, Philip 367 Lansbury, George 199, 229–32, 233–4 Laski, Harold 21, 240 Lawrence, D.H. 219 League of Nations 231 Left Book Club 219, 240, 243 Leigh, Mike 184 Lenin, Vladimir 50, 54 Leslie, Ann 333 Lewis, C.


pages: 478 words: 126,416

Other People's Money: Masters of the Universe or Servants of the People? by John Kay

Affordable Care Act / Obamacare, asset-backed security, bank run, banking crisis, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, Bonfire of the Vanities, bonus culture, Bretton Woods, buy and hold, call centre, capital asset pricing model, Capital in the Twenty-First Century by Thomas Piketty, cognitive dissonance, corporate governance, Credit Default Swap, cross-subsidies, dematerialisation, disruptive innovation, diversification, diversified portfolio, Edward Lloyd's coffeehouse, Elon Musk, Eugene Fama: efficient market hypothesis, eurozone crisis, financial innovation, financial intermediation, financial thriller, fixed income, Flash crash, forward guidance, Fractional reserve banking, full employment, George Akerlof, German hyperinflation, Goldman Sachs: Vampire Squid, Growth in a Time of Debt, income inequality, index fund, inflation targeting, information asymmetry, intangible asset, interest rate derivative, interest rate swap, invention of the wheel, Irish property bubble, Isaac Newton, John Meriwether, light touch regulation, London Whale, Long Term Capital Management, loose coupling, low cost airline, low cost carrier, M-Pesa, market design, millennium bug, mittelstand, money market fund, moral hazard, mortgage debt, Myron Scholes, NetJets, new economy, Nick Leeson, Northern Rock, obamacare, Occupy movement, offshore financial centre, oil shock, passive investing, Paul Samuelson, peer-to-peer lending, performance metric, Peter Thiel, Piper Alpha, Ponzi scheme, price mechanism, purchasing power parity, quantitative easing, quantitative trading / quantitative finance, railway mania, Ralph Waldo Emerson, random walk, regulatory arbitrage, Renaissance Technologies, rent control, risk tolerance, road to serfdom, Robert Shiller, Robert Shiller, Ronald Reagan, Schrödinger's Cat, shareholder value, Silicon Valley, Simon Kuznets, South Sea Bubble, sovereign wealth fund, Spread Networks laid a new fibre optics cable between New York and Chicago, Steve Jobs, Steve Wozniak, The Great Moderation, The Market for Lemons, the market place, The Myth of the Rational Market, the payments system, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Tobin tax, too big to fail, transaction costs, tulip mania, Upton Sinclair, Vanguard fund, Washington Consensus, We are the 99%, Yom Kippur War

., and Sarfraz, S., 2013, ‘Largest 100 Banks in the World’, SNL Financial LC, 23 December. 4. Mirrlees, J.A., et al., 2011, Tax by Design, Oxford, Oxford University Press. 5. I have written such a book, but a long time ago; Kay, J.A., and King, M.A., 1979, The British Tax System, Oxford, Clarendon Press, 5th edn, 1992. 6. Von Mises, L., 1927, Liberalismus, Jena, Gustav Fischer. Hayek, F.A., 1944, The Road to Serfdom, London, Routledge & Kegan Paul. 7. This argument is developed powerfully in Bhidé, A., 2011, A Call for Judgment, Oxford, Oxford University Press. 8. Attributed to Clifford Stoll and Gary Schubert in Keeler, M.R., 2006, Nothing to Hide, Lincoln, NE, iUniverse, Inc., p.112. 9. Though the authorities have discretion not to prosecute, which it is to be hoped they would have exercised. US law, as laid down in the Supreme Court judgement in the Dirks case, requires fraudulent intent; for conviction under European law it is sufficient that the information is price-sensitive – which the fraud certainly was – and that the person knew he was in unauthorised possession of it. 10.

., 2010, ‘The $100 Billion Question’, remarks at the Institute of Regulation and Risk, Hong Kong, 30 March. Haldane, A.G., 2010, ‘Patience and Finance’, Oxford China Business Forum, Beijing, 2 September. Haldane, A., Brennan, S., and Madouras, V., 2010, ‘What is the Contribution of the Financial Sector?’, in The Future of Finance, ed. Turner, A., et al., London, London School of Economics. Harris, R., 2012, The Fear Index, London, Arrow Books. Hayek, F.A., 1944, The Road to Serfdom, London, Routledge & Kegan Paul. Henderson, P.D., 1977, ‘Two British Errors: Their Probable Size and Some Possible Lessons’, Oxford Economic Papers, 29 (2), July, pp. 159–205. Herndon, T., Ash, M., and Pollin, R., 2013, ‘Does High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogoff’, University of Amherst, Political Economic Research Institute Working Paper 322.


pages: 418 words: 128,965

The Master Switch: The Rise and Fall of Information Empires by Tim Wu

accounting loophole / creative accounting, Alfred Russel Wallace, Apple II, barriers to entry, British Empire, Burning Man, business cycle, Cass Sunstein, Clayton Christensen, commoditize, corporate raider, creative destruction, disruptive innovation, don't be evil, Douglas Engelbart, Douglas Engelbart, Howard Rheingold, Hush-A-Phone, informal economy, intermodal, Internet Archive, invention of movable type, invention of the telephone, invisible hand, Jane Jacobs, John Markoff, Joseph Schumpeter, Menlo Park, open economy, packet switching, PageRank, profit motive, road to serfdom, Robert Bork, Robert Metcalfe, Ronald Coase, sexual politics, shareholder value, Silicon Valley, Skype, Steve Jobs, Steve Wozniak, Telecommunications Act of 1996, The Chicago School, The Death and Life of Great American Cities, the market place, The Wisdom of Crowds, too big to fail, Upton Sinclair, urban planning, zero-sum game

The same ideas that had inspired Henry Ford and Theodore Vail had, in the realm of politics, led to Hitler and Stalin. And so a general repudiation of the whole logic of centralization was a natural fact of the Cold War era. It was an Austrian economist who would provide the most powerful critique not just of central planning but of the Taylorist fallacies underlying it. Friedrich Hayek, author of The Road to Serfdom, is a patron saint of libertarians for having assailed not only big government, in the form of socialism, but also central planning in general.8 For what he found dangerous about the centralizing tendencies of socialism applies equally well to the overbearing powers of the corporate monopolist. Hayek would have agreed with Vail’s claim, as with the Soviets’, up to a point: ideally, planning should eliminate the senseless duplication that flows from decentralized decision making.

“A Protocol for Packet Network Intercommunication” in Jeremy M. Norman, ed., From Gutenberg to the Internet: A Sourcebook on the History of Information Technology (Novato, CA: historyofscience.com, 2005) 871–90. 7. As quoted in Alfred L. Malabre, Jr., Lost Prophets: An Insider’s History of the Modern Economists (Cambridge, MA: Harvard Business Press, 1994), 220. 8. Friedrich A. Hayek, The Road to Serfdom (London: George Routledge & Sons, 1944). 9. This quote comes from Friedrich A. Hayek, Individualism and Economic Order (Chicago: University of Chicago Press, 1948), 77. 10. Leopold Kohr, The Breakdown of Nations (London: Routledge & Paul, 1957), ix. 11. Schumacher’s idea of “enoughness” stemmed from his studies of what he called “Buddhist economics.” See Ernst F. Schumacher, Small Is Beautiful: Economics As If People Mattered (New York: Harper & Row, 1973). 12.


pages: 422 words: 131,666

Life Inc.: How the World Became a Corporation and How to Take It Back by Douglas Rushkoff

addicted to oil, affirmative action, Amazon Mechanical Turk, anti-globalists, banks create money, big-box store, Bretton Woods, car-free, Charles Lindbergh, colonial exploitation, Community Supported Agriculture, complexity theory, computer age, corporate governance, credit crunch, currency manipulation / currency intervention, David Ricardo: comparative advantage, death of newspapers, don't be evil, Donald Trump, double entry bookkeeping, easy for humans, difficult for computers, financial innovation, Firefox, full employment, global village, Google Earth, greed is good, Howard Rheingold, income per capita, invention of the printing press, invisible hand, Jane Jacobs, John Nash: game theory, joint-stock company, Kevin Kelly, Kickstarter, laissez-faire capitalism, loss aversion, market bubble, market design, Marshall McLuhan, Milgram experiment, moral hazard, mutually assured destruction, Naomi Klein, negative equity, new economy, New Urbanism, Norbert Wiener, peak oil, peer-to-peer, place-making, placebo effect, Ponzi scheme, price mechanism, price stability, principal–agent problem, private military company, profit maximization, profit motive, race to the bottom, RAND corporation, rent-seeking, RFID, road to serfdom, Ronald Reagan, short selling, Silicon Valley, Simon Kuznets, social software, Steve Jobs, Telecommunications Act of 1996, telemarketer, The Wealth of Nations by Adam Smith, Thomas L Friedman, too big to fail, trade route, trickle-down economics, union organizing, urban decay, urban planning, urban renewal, Vannevar Bush, Victor Gruen, white flight, working poor, Works Progress Administration, Y2K, young professional, zero-sum game

It was a leap, but one supported by the decade’s leading psychologists, and one that provided the leaders of the free world with a social model capable of confronting the financial and ideological challenges of managing the postwar industrial economy. While the Soviets struggled to build a centralized bureaucracy that could administrate the needs of all people, free economies turned to the market. In 1944, an Austrian economist named Friedrich Hayek had just finished his seminal work, The Road to Serfdom, in which he argued to his British and American colleagues that all forms of collectivism lead to tyranny. According to Hayek, any central planner will prove incapable of managing resources without resorting to coercive means. The people, desperate for leadership capable of putting bread on the table, would welcome dictatorship and voluntarily surrender their personal and economic freedoms to the promise of greater efficiency.

Bentley Macleod, and Daniel Parent, “Performance Pay and Wage Inequality,” Departmental Working Papers from McGill University, Department of Economics, at http://econpapers.repec.org/paper/mclmclwop/2006-08.htm (accessed May 1, 2008); and, most important to my own argument, Alfie Kohn, No Contest: The Case Against Competition (Boston: Houghton Mifflin, 1992). 149 In 1944, an Austrian economist Friedrich Hayek, The Road to Serfdom (Chicago: University of Chicago Press, 1947). 151 A Paranoid Schizophrenic’s Legacy Robert Boyd and Peter J. Richerson, “Solving the Puzzle of Human Cooperation,” in Evolution and Culture, ed. Stephen C. Levinson and Pierre Jaisson, 105-32 (Cambridge, Mass.: MIT Press, 2005). 151 The think-tank logicians at Rand Rand corporation, or Research and Development Corporation, is a global policy think tank created originally for the U.S.


pages: 790 words: 150,875

Civilization: The West and the Rest by Niall Ferguson

Admiral Zheng, agricultural Revolution, Albert Einstein, Andrei Shleifer, Atahualpa, Ayatollah Khomeini, Berlin Wall, BRICs, British Empire, business cycle, clean water, collective bargaining, colonial rule, conceptual framework, Copley Medal, corporate governance, creative destruction, credit crunch, David Ricardo: comparative advantage, Dean Kamen, delayed gratification, Deng Xiaoping, discovery of the americas, Dissolution of the Soviet Union, European colonialism, Fall of the Berlin Wall, Francisco Pizarro, full employment, Hans Lippershey, haute couture, Hernando de Soto, income inequality, invention of movable type, invisible hand, Isaac Newton, James Hargreaves, James Watt: steam engine, John Harrison: Longitude, joint-stock company, Joseph Schumpeter, Kickstarter, Kitchen Debate, land reform, land tenure, liberal capitalism, Louis Pasteur, Mahatma Gandhi, market bubble, Martin Wolf, mass immigration, means of production, megacity, Mikhail Gorbachev, new economy, Pearl River Delta, Pierre-Simon Laplace, probability theory / Blaise Pascal / Pierre de Fermat, profit maximization, purchasing power parity, quantitative easing, rent-seeking, reserve currency, road to serfdom, Ronald Reagan, savings glut, Scramble for Africa, Silicon Valley, South China Sea, sovereign wealth fund, special economic zone, spice trade, spinning jenny, Steve Jobs, Steven Pinker, The Great Moderation, the market place, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Thorstein Veblen, total factor productivity, trade route, transaction costs, transatlantic slave trade, undersea cable, upwardly mobile, uranium enrichment, wage slave, Washington Consensus, women in the workforce, World Values Survey

It was because centralized economic planning, though indispensable to success in the nuclear arms race, was wholly unsuited to the satisfaction of consumer wants. The planner is best able to devise and deliver the ultimate weapon to a single client, the state. But the planner can never hope to meet the desires of millions of individual consumers, whose tastes are in any case in a state of constant flux. This was one of the many insights of Keynes’s arch-rival, the Austrian economist Friedrich von Hayek, whose Road to Serfdom (1945) had warned Western Europe to resist the chimera of peacetime planning. It was in meeting (and creating) consumer demands that the American market model, revitalized during the war by the biggest fiscal and monetary stimulus of all time, and sheltered by geography from the depredations of total war, proved to be unbeatable. A simple example illustrates the point. Before the war most clothes were made to measure by tailors.

H. 103–4 empires see imperialism; individual empires Encümen-i Daniş (Assembly of Knowledge), Ottoman empire 89 Engels, Friedrich 207, 209, 210–11, 228 England 4, 18, 37 China and 47–9 exploration, voyages of 36 France and 23, 24, 39 Industrial Revolution 10, 13, 21, 28–9, 70 Ireland and 24, 105, 203n London see London slavery (chattel slavery) in 130, 132 see also Britain; British empire English Civil Wars 104, 105, 106, 107, 115, 150, 152 the Enlightenment 76–9, 81 environmental issues 17, 293–4, 299 Epp, Franz Xavier Ritter von 188–9 Erasmus, Desiderius xxiii Erdely, Eugene 190 Eugene of Savoy, Prince 56 eugenics 176–7 in Germany 176–81, 189–90, 191; in German Namibia 176–81; genocide in 179–80, 188 Euler, Leonard 84 Euphrates river/valley 17 Europe competition between states 36–42 geography 36–7 Islamic envoys to 86–7 US and 16 see also individual countries European integration 14–15, 239 Everett, Edward 137 exploration, voyages of 9, 23, 38 Chinese 28–33, 48 English 36 marine chronometers for 70 as missionary endeavours 39 Portuguese 33–5, 39, 53, 130 Spanish 35–6 Faidherbe, Louis, governor of Senegal 164, 165, 166 fashion/clothing 197–8, 219–20, 225, 237, 246, 255 communist attitude to 249–50 in Japan 220–21, 222, 223, 225 jeans 240–44, 246–9, 250 machine made 217–18, 237 for men 216, 220–21, 230 military uniforms 215–16, 229, 233, 234, 237 for women 216, 220, 246; Islamic 253–5, 253n see also consumerism Fashoda incident, Sudan (1898) 173 Feng Youlan: History of Chinese Philosophy 27 Feraios, Rigas 213 Fermat, Pierre de 66 Ferrier, Thomas 121, 122 Ferry, Jules, Prime Minister of France 172 Fertile Crescent concept 17 film industry 230, 231 Filmer, Sir Robert: Patriarcha 108 financial systems 7, 14, 139 in Asia 7, 252–3, 277–8 banking 230–31 capitalism see capitalism cash nexus concept 206–7 consumer credit 238 in Europe 106–7, 161 markets/market economy 205–6, 276–7 money supply 38 monopolies 38 taxation 38, 44, 106, 107, 117, 210–11, 288 see also economic …; Great Depression First World War (1914–18) 16, 92, 148–9, 181, 182, 227 African colonial troops in 181–9; French 183–7; German 182 casualty figures 181, 183, 186, 187 Dardanelles 85 Gallipoli 91, 182 Rudyard Kipling on 187–8 Fischer, Eugen 180–81, 189 Human Heredity … 189 food see diet food supplies 22, 200–201 famine 44, 46 see also agriculture foreign aid, to Africa 145–6 France 4, 16, 36, 37, 83, 85 American Revolution and 117 Britain and 140, 160, 161, 173 economic crises 149–50, 161 England and 23, 24, 39 the Enlightenment 77–8 in First World War 182–3, 185–7 Huguenots 39, 41, 76 Italy and 159 literacy rates 77 living standards 24–5 the Marseillaise 156, 156n under Napoleon Bonaparte 119, 142, 156–61 Paris 5, 77, 215 property rights 152 Russia and 160 Spain and 119 student unrest 245 see also French … Frauenfeld, Alfred 193 Frederick the Great of Prussia 73–4 The Anti-Machiavel 75, 79–80 as an intellectual 79–80 Political Testaments 73, 80 as a scientific patron 71, 79–80, 84 French army, in First World War 182–3, 185–7 mutiny in 186–7 French empire 148, 159, 160, 195 in Africa 163–75, 176, 188, 190–91; segregation in 174–5 colonial armies 164; in First World War 183–7 Ecole Coloniale 165, 166–7, 172 extent of 144 institutional structure 172–3 legal system 165–6 male suffrage in 163 in North America (Louisiana Purchase) 163, 160–61 slavery, abolition of 163–4 unrest in 163, 175 French Revolution 119, 142, 149–57, 161–2 Edmund Burke on 149, 150–52, 152n, 155, 156 causes of 149–50, 153 Declaration of the Rights of Man 150, 151 executions during 152–3 political system during 152–3 as a religious conflict 151, 152, 153, 154 Rousseau and 151–2 the Terror 153, 155–6 Alexis de Tocqueville on 153–4 see also France … French West Africa 170–71, 174, 191 Freud, Sigmund 16 on civilization 272–3 on religion 270–71, 272 Frisch, Otto 235 Galileo Galilei 65, 66, 83, 84 Galton, Francis 176–7 Kantsaywhere 177n Gandhi, Mahatma 217 on Western civilization 141, 144, 171, 195 on Western medicine 146, 149 Garibaldi, Giuseppe 229 Le Gazetier Cuirassé 79 genocide 179–80, 188, 193, 194, 234 see also eugenics German army, in First World War 182–3, 185–7 colonial troops 182 German empire 144 in Africa 176–81, 188–90, 191; legal system 177, racial issues 176, 177–81; rebellion in 178–9 Nazi, in Eastern Europe 189–90, 191–5 German nationalism 213, 214 Germany 11, 16, 38, 159 division of, post-1945 243; Berlin Wall 249, 251 economic growth/output 231, 232–3 eugenics in 176–81 living standards 232–3 Nazi regime 189–90, 191–5, 231–4; see also Hitler, Adolf as a printing centre 61 Reformation 38 Russia and 192, 194, 231–2 as a scientific centre 175–6 Gibbon, Edward 78 The History of the Decline and Fall of the Roman Empire 257–9, 291–2 Gide, André 174 Gilbert, William 65 Ginsburg, Allen 247 globalization 239 gold, from South America 99, 101–2, 130 golf 28 Goltz, Colmar Freiherr von de (Goltz Pasha) 91 Gorbachev, Mikhail 250 Göring, Heinrich (father of Hermann Göring) 176, 189 Göring, Hermann 176, 189, 193 Graham, Billy 273–4 Great Britain see Britain Great Depression 229–31 Greece 15, 17, 21 Greek nationalism 213, 228 Greer, Germaine 246 Gregory VII, Pope 60 Grijns, Gerrit 170 Grimm, Hans: People without Space 189 Grosseteste, Robert 60 Guettard, Jean-Etienne 66 Guizot, François xxvii Gutenberg, Johann 60–61 Habsburg empire 8–9, 53, 144 Ottoman empire’s invasion of (1683) 52, 54–7 Vienna, siege of (1683) 52, 53, 55, 57 see also Austria Haiti 120, 128, 160 Hamakari, battle of (1904) 179 Hammond, Mac 275 Hardy, Georges 166 Hargreaves, James 200 Harrison, John 70 Harvey, William 66 Haussmann, Baron Georges 215 Havel, Václav 248–9 Hawaii 144 Hayek, Friedrich von 301 Road to Serfdom 237 health issues 7, 12, 14, 44, 68, 175–6 antibiotics 148 Black Death/plague 4, 23, 25, 54, 169, 175 death 25–6 definition 13 diet and 170 eugenics see eugenics European diseases, spread of 99, 101 hospitals: Islamic 51 medical schools 53 native medicine/healers 171–2 public health 147, 148, 171–2, 177, 205 sanitation 23, 147, 179 tropical diseases 148, 168–70, 173; mortality rate from 168; research on 169–70, 174 vaccination 14, 147, 148, 170, 173, 175 Western medicine, benefits of 146–8, 168–75, 191 witch doctors 171, 172 health transition concept 147–8 Heck, Walter 233 Hegel, Georg Wilhelm Friedrich 159, 207, 212 Helvétius, Adrien 78 Hempel, Carl xx Hendel, Ann Katrin 250 Henry V, King of England 23, 24, 39 Henry VIII, King of England 72, 103–4 Henry the Navigator, King of Portugal 39 Himmler, Heinrich 190, 192, 193–4 Hirohito, Crown Prince of Japan 220, 225–6 Hispaniola (island) 101–2 history teaching of xviii–xx limitations of xx–xxii Hitler, Adolf 189–90, 194, 231 Hossbach memorandum 233 see also Germany, Nazi regime Ho Chi Minh 167 Hobbes, Thomas 24, 73 on liberty 107–8 Hoffmann, Erich 175–6 Hogg, James xxvi Holbach, baron Paul-Henri Thiry d’ 79 homicide rates 24, 25, 105 Hong Kong 105, 169 Hong Xiuquan 279–80 Hooke, Thomas 67, 70 Micrographia 64 How, Millicent (English migrant to South Carolina) 103, 106, 111–12 Hu Jintao 287–8 Huguenots 39, 41, 76 human rights 8 Hume, David 77, 78 Hungary 251 Huntington, Samuel, on Western civilization 15, 16, 312–13 Hus, Jan 61 Hussein, Saddam xvi Hutton, James 66 Ibrahim, Muktar Said 288–9 illiteracy see literacy rates imperialism 8–10, 13, 14, 15, 142–95, 302–3 in Africa 14, 139, 145, 146, 148, 163–75; see also individual countries in America see America … colonial armies/troops 164, 181–9 communications, difficulty of 170–71, 181–2 as conquest 99–102 European diseases spread by 99, 101 growth/decline of 3, 4, 5, 13, 38, 142, 144–5 impact of 8, 45, 46, 144–6, 173–4, 190–95 institutional structures and 103–5 Lenin on 144 as a term of abuse 144, 145 Mark Twain on 144 Western 14, 15, 96–140, 142–95 Western medicine, benefits of to overseas colonies 146–8, 168–75, 191 see also individual empires Inca empire, Spanish conquest of 98, 99–102 income levels see living standards; wages India 5, 9, 17, 36 as British colony 144, 264 China and 29, 32 as independent state 224–5 Portugal and 34, 35, 39 science/technology 11 textile industry 2245 Indian Medical Service 169–70 Indian Ocean 29, 32, 33 Indo-China, as a French colony 167, 191 Indonesia 240 Industrial Revolution 13, 21, 28–9, 70, 198–205 in Britain 10, 13, 21, 28–9, 70, 199–200, 203–5 consumerism, increase caused by 201–2 definition 198–9 spread of 204–5, 225, 264 industrialization 10, 14, 216–18 in China 225, 284, 285 inequality see living standards infant mortality see life expectancy Inoue Kaoru 226 institutional structures 11–14 cultural 77 financial/economic see financial systems imperialism and 103–5, 112, 172–3, 287 of Islamic fundamentalism 288, 289, 290n Islamic 289, 290, 290n Iran 94–5, 255 Ireland 11, 227, 203n England and 24, 105 iron/steel industry 200–201 Islam 3, 8, 9, 16, 60 calligraphy, importance of 68 Europe, envoys sent to 86–7 health issues: hospitals 51; medical schools 53 the Koran 63 population figures 290 printing, attitude to 68, 86 religious conflict 71 in Turkey 253–5 the West and 39, 50–57, 63, 85–90, 255 women’s clothing 253–5, 254n see also Ottoman empire; religious issues Islamic education 51 Islamic fundamentalism 93–5, 93n, 255, 258, 288–91 institutional structure 288, 289, 290n Islamic migration 290, 290n Islamic science/technology 51–7, 264 astronomy 68–9 attitudes to 67–9 Roger Bacon on 52 modernization of 88–9, 92, 94–5 optics 51–2 Israel 92–5, 246–7 Jerusalem 93, 93n, 94 science/technology in 93–4 see also Jews Italian city-states/Italy 4, 25, 28, 159, 182 France and 159 Under Mussolini 228 Naples 26, 159 as a printing centre 63 Rome 17; March on (1922) 228–9 in Second World War 233–4 Venice 38–9 see also Roman empire Italian colonies 144 Italian unification 212–13, 214–15, 228 Iwakura Tomomi 221 Jamaica 120, 123 as a British colony 148 Jansen, Zacharias 65 Japan 5, 9, 42 China and 226, 233, 234 fashion/clothing 220–21, 222, 223, 225 living standards 45–6 modernization of 90, 218, 221–5, 226, 239, 257; internal opposition to 222 Russia and 226 textile industry 223–4 US and 221; in Second World War 233–5 Western influence on 5, 7, 15, 221–5 women in 222 Japanese armed forces 226, 234 Java 170 jeans, as a symbol of consumerism 240–49, 250 Jefferson, Thomas 134 Jerusalem 93, 93n, 94 Jews 3, 76 as entrepreneurs 216–17, 217n, 262n as intellectuals 235, 235n in Palestine 92–3 persecution of 38–9; in Germany 92, 214, 234, 235 Max Weber on 262 see also Israel Jiang Zemin 287 Jiao Yu and Liu Ji: Huolongjing 28 Jirous, Ivan 248 John Paul II, Pope 252 Johnson, Blind Willie 18 Johnson, Samuel 2, 10 Kahn, Albert 196, 196n Kamen, Dean 145n Kant, Immanuel 76, 79, 80–81 Critique of Pure Reason 76 Kara Mustafa Köprülü (‘the black’), Grand Vizier 52, 54–5, 56, 71, 86 Karaca, Nihal Bengisu 254 Kaufman, Henry xvi Kemal, Mustafa see Atatürk, Kemal Kennedy, Paul: The Rise and Fall of the Great Powers 298 Keynes, John Maynard 7, 230, 231, 237 Khan, Dr A.


pages: 391 words: 22,799

To Serve God and Wal-Mart: The Making of Christian Free Enterprise by Bethany Moreton

affirmative action, American Legislative Exchange Council, anti-communist, Berlin Wall, big-box store, Bretton Woods, Buckminster Fuller, collective bargaining, corporate personhood, creative destruction, deindustrialization, desegregation, Donald Trump, estate planning, Fall of the Berlin Wall, Frederick Winslow Taylor, George Gilder, global village, informal economy, invisible hand, liberation theology, longitudinal study, market fundamentalism, Mont Pelerin Society, mortgage tax deduction, Naomi Klein, new economy, post-industrial society, postindustrial economy, prediction markets, price anchoring, Ralph Nader, RFID, road to serfdom, Ronald Reagan, Silicon Valley, Stewart Brand, strikebreaker, The Wealth of Nations by Adam Smith, union organizing, walkable city, Washington Consensus, white flight, Whole Earth Catalog, Works Progress Administration

By the time he connected with SIFE, Young held an endowed chair in free enterprise at the University of Â�Tennessee–Martin, where his activities included directing a “Kinder-Â� Nomics” course for preschoolers and a Business and Economics Leader210 “STUDENTS CHANGING TH E W ORL D” ship Camp for high-Â�school students.83 Some brought explicit interests in Christianity to their scholarly work, like the adviser at Western Kentucky University who analyzed “the areas of money management dealt with in the Holy Bible.”84 SIFE’s focus on public outreach and especially on schoolchildren meant that the economic concepts in play remained extremely basic: Â�profits are benÂ�eÂ�fiÂ�cial; government is wasteful; Â�unions are illegitimate; corporations are natural persons; free markets abhor environmental regulation but not cartels, monopsony contracts, or military-Â�supported access to foreign raw materials. Even at schools that taught economics as a theoretical discipline, SIFE invariably entered through the business departments. A small number of committed ideologues provided some of the fire in SIFE’s belly, but only at a remove from the core theories they represented. SIFE students read “I, Pencil,” not The Wealth of Nations nor even The Road to Serfdom. Sometimes, however, the students veered toward contradictions between their ideological models and conÂ�flicting economic values. In the midst of the intense focus on entrepreneurial heroism and government profligacy, Malone College’s 1987 projÂ�ect stood out for its explicit reference to the basis of the postindustrial economy. The program they presented that year in more than thirty elementary, junior high, and high schools was boldly titled “Consumer Sovereignty.”

See also Migrants IndeÂ�penÂ�dent Retail Grocers Association, 26 IndeÂ�penÂ�dent stores, 18, 21–23, 30, 45, 53, 143–144 Individualism, 44, 51–53, 99, 103–104, 209, 246 Industrial economy, 5, 50, 54, 57, 65, 67, 73, 84, 87 Industrial capÂ�italism, 14, 124 Industrialism, 7–17, 21, 39–40, 46, 50–52, 54, 60, 65, 136, 153, 220, 268–269, 308n59 Industrial work, 80–81, 84, 87, 99, 108–109, 113, 121, 125, 136 Inflation, 2, 125–126, 142, 145, 165, 183, 343n23 Innovation, 7, 12, 147, 155–159, 190–191 Instituto Centroamericano de Administración de Empresas, 243 Instituto Tecnológico y de Estudios Superiores de Monterrey, 219 Insurance: unemployment, 54, 184; health, 71, 297n29; life, 71 International Conference on World Evangelization, 239–240, 250, 340n69 International Mass Retailers Association, 257–259 InterVarsity Christian Fellowship, 87–88, 97 Hallmark Cards, 174, 200, 216 Halt the Deficit campaign, 202–205 Hard/soft management, 109, 111, 271 Harding University (formerly Harding College), 163–168, 174, 182, 193–195, 199, 208–209, 211, 217, 228, 231–232, 234–235, 243–245 Hargis, Billy James, 166 Harvey, Paul, 222, 248 Hatch, Orrin, 185 Hayek, Friedrich von, 175, 195; The Road to Serfdom, 211 Health care/insurance, 1, 4, 30, 71–72, 115, 297n29 Helms, Jesse, 185 Heritage Foundation, 199, 214–215, 330n27 High schools, 145–148, 167, 174, 194, 196, 211, 217 Hillbillies, 11, 42 Hobbs, NM, 173–175 Homosexuality, 3, 9, 112, 118–121 Honduras, 50, 235, 252–253 Hoover Institute, 169, 214 Household labor, 50–54, 80, 84, 114–116, 123, 183, 292n6, 309n67 Housing, 2, 115, 264–266 Houston, TX, 31–33, 39 Human relations.


pages: 524 words: 143,993

The Shifts and the Shocks: What We've Learned--And Have Still to Learn--From the Financial Crisis by Martin Wolf

air freight, anti-communist, Asian financial crisis, asset allocation, asset-backed security, balance sheet recession, bank run, banking crisis, banks create money, Basel III, Ben Bernanke: helicopter money, Berlin Wall, Black Swan, bonus culture, break the buck, Bretton Woods, business cycle, call centre, capital asset pricing model, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collateralized debt obligation, corporate governance, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, debt deflation, deglobalization, Deng Xiaoping, diversification, double entry bookkeeping, en.wikipedia.org, Erik Brynjolfsson, Eugene Fama: efficient market hypothesis, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial deregulation, financial innovation, financial repression, floating exchange rates, forward guidance, Fractional reserve banking, full employment, global rebalancing, global reserve currency, Growth in a Time of Debt, Hyman Minsky, income inequality, inflation targeting, information asymmetry, invisible hand, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, labour mobility, light touch regulation, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, Long Term Capital Management, mandatory minimum, margin call, market bubble, market clearing, market fragmentation, Martin Wolf, Mexican peso crisis / tequila crisis, money market fund, moral hazard, mortgage debt, negative equity, new economy, North Sea oil, Northern Rock, open economy, paradox of thrift, Paul Samuelson, price stability, private sector deleveraging, purchasing power parity, pushing on a string, quantitative easing, Real Time Gross Settlement, regulatory arbitrage, reserve currency, Richard Feynman, risk-adjusted returns, risk/return, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, shareholder value, short selling, sovereign wealth fund, special drawing rights, The Chicago School, The Great Moderation, The Market for Lemons, the market place, The Myth of the Rational Market, the payments system, The Wealth of Nations by Adam Smith, too big to fail, Tyler Cowen: Great Stagnation, very high income, winner-take-all economy, zero-sum game

In a splendid book, Economics After the Crisis: Ends and Means (Cambridge, MA, and London: MIT Press, 2012), p. 72, Lord (Adair) Turner argues that ‘Economic freedom on both the consumption side and the production side – not only the right to choose what to consume but also the right to set up a new company, to work for oneself, and to compete with new ideas – should be recognized as a desirable objective in and of itself, not because of any prosperity dividend it delivers.’ 18. Friedrich Hayek put this point in the opposite way: ‘whoever has sole control of the means must also determine which ends are to be served’. See Friedrich Hayek, The Road to Serfdom (Chicago: Chicago University Press, 1944), pp. 68–9. INTRODUCTION: ‘WE’RE NOT IN KANSAS ANY MORE’ 1. A version of this chapter’s discussion of the legacy of the financial crisis appears in ‘Afterword: How the Financial Crises Have Changed the World’, in Robert C. Feenstra and Alan M. Taylor, eds, Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century (Chicago: University of Chicago Press, 2013). 2.

‘The Dog and the Frisbee’, Paper given at the Federal Reserve Bank of Kansas City’s 36th Economic Policy Symposium, ‘The Changing Policy Landscape’, Jackson Hole, Wyoming, 31 August 2012. http://www.bankofengland.co.uk/publications/Documents/speeches/2012/speech596.pdf. Haldane, Andrew G., Simon Brennan and Vasileios Madouros. ‘What is the Contribution of the Financial Sector: Miracle or Mirage?’, in Adair Turner et al., The Future of Finance: The LSE Report (London: London School of Economics and Political Science, 2010). http://harr123et.files.wordpress.com/2010/07/futureoffinance-chapter21.pdf, Figure 19. Hayek, Friedrich. The Road to Serfdom, (Chicago: Chicago University Press, 1944). Herndon, Thomas, Michael Ash and Robert Pollin. ‘Does High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogoff’, 15 April 2013. http://www.peri.umass.edu/fileadmin/pdf/working_papers/working_papers_301-350/WP322.pdf. Hicks, John R. ‘Mr Keynes and the “Classics”: A Suggested Interpretation’, Econometrica, vol. 5, no. 2 (April 1937).


Crisis and Leviathan: Critical Episodes in the Growth of American Government by Robert Higgs, Arthur A. Ekirch, Jr.

Alistair Cooke, American ideology, business cycle, clean water, collective bargaining, creative destruction, credit crunch, declining real wages, endowment effect, fiat currency, fixed income, full employment, hiring and firing, income per capita, Jones Act, Joseph Schumpeter, laissez-faire capitalism, manufacturing employment, means of production, minimum wage unemployment, plutocrats, Plutocrats, post-industrial society, price discrimination, profit motive, rent control, rent-seeking, Richard Thaler, road to serfdom, Ronald Reagan, Sam Peltzman, Simon Kuznets, strikebreaker, The Wealth of Nations by Adam Smith, total factor productivity, transaction costs, transcontinental railway, union organizing, Upton Sinclair, War on Poverty, Works Progress Administration

Herman, Corporate Control, Corporate Power (New York: Cambridge University Press, 1981), pp. 164-172. Every major industrial economy has relatively more government ownership of industry than the United States; and the extent of government ownership has not changed markedly during the post-World War II era in the United States. 11. Charlotte Twight, America's Emerging Fascist Economy (New Rochelle, N.Y.: Arlington House, 1975), Chap. 1; Friedrich A. Hayek, The Road to Serfdom (Chicago: University of Chicago Press, 1944), p. 4. 12. Richard Gillam, "The Peacetime Draft: Voluntarism to Coercion," Yale RetView 57 Oune 1968), reprinted in The Military Draft: Selected Readings on Conscription, ed. Martin Anderson (Stanford: Hoover Institution Press, 1982), p. 113. 13. Alonzo L. Hamby, Liberalism and Its Challengers: FDR to Reagan (New York: Oxford University Press, 1985), p. 307; Frank Freidel, America in the Twentieth Century, 4th ed.

Boston: Houghton Mifflin, 1956. - - . The Anatomy of Power. Boston: Houghton Mifflin, 1983. Greer, Douglas F. Business, Government, and Society. New York: Macmillan, 1983. Hansen, john Mark. "The Political Economy of Group Membership." American Politic,;# Science Review 79 (March 1985). Hardin, Russell. Collective Action. Baltimore: johns Hopkins University Press, 1982. Hayek, Friedrich A. The Road to Serfdom. Chicago: University of Chicago Press, 1944. - - . The Constitution of Liberty. Chicago: University of Chicago Press, 1960. Hechter, Michael. "A Theory of Group Solidarity." In The Micro-foundations of Macrosociology, ed. Michael Hechter. Philadelphia: Temple University Press, 1983. Heertje, Arnold, ed. Schumpeter's Vision: Capitalism, Socialism and Democracy after 40 Years. New York: Praeger, 1981.


pages: 214 words: 57,614

America at the Crossroads: Democracy, Power, and the Neoconservative Legacy by Francis Fukuyama

affirmative action, Ayatollah Khomeini, Berlin Wall, Bretton Woods, cuban missile crisis, David Brooks, European colonialism, failed state, Francis Fukuyama: the end of history, Internet Archive, Mikhail Gorbachev, Monroe Doctrine, mutually assured destruction, New Journalism, race to the bottom, RAND corporation, rent-seeking, road to serfdom, Ronald Reagan, Ronald Reagan: Tear down this wall, transaction costs, uranium enrichment, War on Poverty, Washington Consensus

Thus Strauss was neither antipolitical nor antistatist; he, like Aristotle, believed that humans were political by nature and reached their full flourishing only by participating in the life of the city. This is why the Straussian wing of the neoconservative movement always had a problem with libertarian conservatives. Libertarians understand freedom only negatively, as freedom The Neoco?iservative Legacy from government power. In the words of Adam Wolfson, "Libertarians rise to the defense of every conceivable freedom but that of self-government. ... To the neoconservative, the true road to serfdom lies in the efforts of libertarian and left-wing elites to mandate an anti-democratic social policy all in the name of liberty. But it is a narrow, privatized liberty that is secured. An active and lively interest in public affairs is discouraged as a result. Everything is permitted except a say in the shaping of the public ethos." 14 Thus, while Straussians and neoconservatives more broadly were tactically allied with traditional conservatives and libertarians on issues like welfare reform, they understood the problem very differently.


pages: 710 words: 164,527

The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order by Benn Steil

activist fund / activist shareholder / activist investor, Albert Einstein, Asian financial crisis, banks create money, Bretton Woods, British Empire, business cycle, capital controls, Charles Lindbergh, currency manipulation / currency intervention, currency peg, deindustrialization, European colonialism, facts on the ground, fiat currency, financial independence, floating exchange rates, full employment, global reserve currency, imperial preference, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Rogoff, lateral thinking, margin call, means of production, money: store of value / unit of account / medium of exchange, Monroe Doctrine, New Journalism, open economy, Paul Samuelson, Potemkin village, price mechanism, price stability, psychological pricing, reserve currency, road to serfdom, seigniorage, South China Sea, special drawing rights, The Great Moderation, the market place, trade liberalization, Works Progress Administration

There must have been some small part of him that rejected this option not because it was futile, but because it would have meant conceding the death of his brainchild—the Clearing Union. On the voyage over, Keynes and the British team, which included Eady, Robbins, and several Bank of England and Foreign Office officials, produced two “boat drafts” dealing with the fund and the bank. Keynes also found time for some leisure reading, which included Friedrich Hayek’s newly published The Road to Serfdom. Keynes penned a response to Hayek, in which he, surely to the chagrin of many of his disciples, called it “a grand book.… Morally and philosophically I find myself in agreement with virtually the whole of it; and not only in agreement, but in a deeply moved agreement.” Keeping to form, however, Keynes then launched a critique, devoting several paragraphs to defending his “middle course” against Hayek’s argument that substituting government planning for markets inevitably led to the loss of individual freedom, as well as declining prosperity.

Dollar report and, 337; Atlantic Charter and, 14, 119, 121, 127; Austerity, Temptation, and Justice alternatives and, 276–79; beggar-thy-neighbor, 31, 144; Beveridge Plan and, 307; Bretton Woods and, 1 (see also Bretton Woods); Clayton’s European integration plan and, 311–16; deficit spending and, 28–29, 46, 189, 278, 358; deflationary, 24, 46, 48, 76–78, 94, 137–38, 142, 144–45, 165, 178, 345; Economic Cooperation Act and, 315; exchange controls and, 178; General Agreement on Tariffs and Trade (GATT) and, 314, 383n7; Gold Reserve Act and, 28, 33–34; gold standard and, 1, 20, 23–25 (see also gold standard); imperial preference and, 14, 115, 121–23, 179–81, 191, 225, 265, 288, 313, 315, 355, 362; Import Duties Act and, 84; import restrictions and, 178; International Monetary Fund (IMF) and, 2, 7, 127, 214, 216, 218, 226–28, 256, 288, 290, 297–301, 304, 310, 315–17, 324, 331–39, 342, 344, 348, 356–58, 366–69, 400n14, 403n93, 404n16; Johnson Act and, 106; Joint Statement by Experts and, 175–85, 187, 191; Joint Statement of Principles and, 198, 210, 215, 248; Keynes Plan and, 138 (see also Keynes Plan); laissez-faire, 20, 74, 77, 93, 140–41, 167, 287–88, 335; Lend-Lease Act and, 3, 14, 105–16 (see also Lend-Lease Act); Marshall Plan and, 7, 107, 142, 312–17, 358, 362–63; The Means to Prosperity and, 86–87; monetary reform and, 4; monetary stabilization, 33 (see also stabilization); Morgenthau Plan and, 177, 266–74, 315, 322, 360; Morrison-Grady Plan and, 307; Munich Agreement and, 50, 100; Nazi-Soviet Pact and, 56–57, 293, 324–25; Neutrality Act and, 106; New Deal and, 1, 6, 21, 32–33, 39, 49, 87, 89, 108, 113, 125, 128, 135, 156, 206–7, 255, 303, 362, 368; New Economic Policy and, 337; Ottawa Agreements and, 120; postwar global peace and, 1; price controls and, 95–96, 311, 331, 338; “Program to Prevent Germany from Starting a World War III” and, 267–68; Silver Purchase Act and, 47, 376n81; Stabilization Fund and, 34, 37, 125, 128, 131, 133, 147, 149, 153, 159, 163, 170, 173, 175–76, 231, 236–37, 254; Treaty of Rome and, 315; Treaty of Versailles and, 71, 363; Tripartite Agreement and, 32–33, 37, 49, 110, 256; Truman Doctrine and, 309; U.S. dollar and, 31 (see also U.S. dollar); White Plan and, 6, 126, 143 (see also White Plan); World Bank and, 127–28, 211, 216, 226, 228, 230, 240, 298–300, 316, 355, 359, 391n127; Yalta accords and, 294 politics: American Communist Party and, 294–96, 360; communism and, 36, 38–39, 43, 45, 97, 99, 225, 239, 288, 293–96, 308–9, 318–21, 324, 328, 330, 347, 356–58, 360, 365, 375n67; Conservative Party and, 276, 369; democracy and, 41–43, 53, 100, 107, 130, 245, 267; Democratic Party and, 6, 19, 105–6, 176, 188, 206–7, 311, 317, 338, 355, 357, 359, 363, 367–68; dollar diplomacy and, 172, 273, 301, 330, 332; espionage and, 36, 273, 298–99, 324, 356, 359–60, 366–68, 376n77; fascism and, 13, 55, 85, 97, 99, 295; House of Commons and, 107, 184, 283, 305; House of Lords and, 85, 169, 184–88, 204, 212, 285, 307; House Special Committee on Un-American Activities (HUAC) and, 296, 318–22; imperialism and, 40, 97, 117, 121, 125, 178, 184, 188, 260, 263, 281, 284, 306; impromptu diplomacy and, 203; internationalists and, 1, 25–26, 39, 140–41, 315; Iron Curtain and, 306–7; isolationism and, 40, 47, 99, 106, 121, 176, 184, 206, 255, 259–60, 306; Keynes and, 65–66, 74, 82–83, 85, 88, 93, 95; Keynesian New Deal Democrats and, 6; Labour Party and, 31, 43, 78, 85, 95, 276, 279, 284, 306, 308, 355–56, 359; League of Nations and, 10, 25–26, 44, 127, 130, 223, 369, 404n28; Marxism and, 39, 83, 86, 88; Mount Washington Hotel and, 10; Nazis and, 56–57, 95, 100, 102, 108, 112, 201, 226, 234, 271–72, 288, 293, 307, 324–25, 356; Nye Commission and, 99, 102; Paris Peace Conference and, 10, 71, 202, 363; partisanship and, 207–8, 245; Pearl Harbor attack and, 53–58; Popular Front and, 32; postwar global peace and, 1–2; protectionism and, 74, 82–83, 87, 135, 226, 311, 313, 334, 338, 362; Republican Party and, 10, 19, 105–6, 176, 188, 206–7, 258, 260, 271, 307–8, 311, 319, 321, 361, 363, 367, 369; Silver Purchase Act and, 47, 376n81; sterling area countries and, 115, 151, 178–81, 185, 191–92, 280, 282, 286; technocrats and, 3, 5, 22, 36, 125, 144, 280, 285; Ten-Point Note and, 55; Treaty of Non-Aggression and, 95; United Nations and, 14, 127, 163, 169, 202, 205, 213, 260, 301, 308, 332; White’s passion for, 17, 19; Wilson’s Fourteen Points and, 71; Zionists and, 306, 359 Popular Front, 32 POWs, 126 Pravdin, Vladimir, 327, 365 price controls, 95–96, 311, 331, 338 Progressive Party, 19, 317 protectionism, 74, 82–83, 87, 135, 226, 311, 313, 334, 338, 362 purchasing power, 29, 92, 95, 342, 345, 384n12 Quarterly Journal of Economics, 92 Queen Elizabeth (ship), 283 Queen Mary (ship), 304 quotas: Bretton Woods negotiations over, 218, 222, 224, 229–48; China and, 235–37, 242–44; France and, 242; India and, 242, 244; Keynes and, 230–31, 237, 243–47; Luxford and, 232, 237, 241–43, 246; Morgenthau and, 229, 231–34, 238–48; Robbins and, 229, 233–34, 242–43, 247; Russia and, 232–44, 247–48; Stepanov and, 233–34, 239–44, 247–48; Vinson and, 242–44; White and, 229–48 Raisman, Jeremy, 243 Reading, Lord (Rufus Isaacs), 69, 365 recession, 33, 46–47, 89, 122, 165, 331, 341 Red Army, 95, 201, 238 reform: Keynes and, 64–65, 75, 137 (see also Keynes Plan); London’s financial center and, 64–65; U.S. Treasury and, 4; White Plan and, 6, 126, 143, 158–59, 164–66, 169–70, 177, 184 (see also White Plan) renminbi, 343, 345 Republican Party, 10, 19, 105–6, 176, 188, 206–7, 258, 260, 271, 307–8, 311, 319, 321, 361, 363, 367, 369 Reserve City Bankers Association, 253–54 Richard (aka Jurist, Lawyer), 291 River Ammonoosuc, 11–12 Road to Serfdom, The (Hayek), 192 Robbins, Lionel: on American delegation, 214, 221, 225; Bank for International Settlements (BIS) and, 227–28; free trade and, 365; Keynes and, 12, 31, 82–83, 140, 170, 192–93, 203, 205, 218–19, 224, 279, 282–83, 392n6; Lend-Lease and, 225; quotas and, 229, 233–34, 242–43, 247; Mount Washington Hotel and, 9; on Norwegian delegation, 226; Vinson and, 242 Robertson, Dennis, 86, 170, 187, 203, 205, 215–16, 251–52, 365, 393n53 Rockefellers, 11, 27 Ronald, Nigel, 226–28, 366 Roosevelt, Franklin Delano (FDR) 365; bankers and, 27; Berle and, 293, 356; Blum and, 32; blunt monetary tactics of, 26–27; Bretton Woods speech of, 13; British war debts and, 102–8; Chamberlain and, 26; Chambers’ confession and, 293; Churchill and, 102–3, 114, 118–23, 129, 201, 261–65, 268, 270–72, 281; death of, 276; devaluation and, 30; distrust of Britain, 25–27; domestic affairs and, 47; espionage and, 295; exchange rate and, 26; federal spending and, 47; Fireside Chats of, 172; global military aggression and, 47; gold-buying operation of, 27–28; Gold Reserve Act and, 28, 33–34; gold standard and, 25, 27, 33; Hull and, 30; Hyde Park estate of, 32; internationalism and, 25–26; isolationism and, 47; Japanese invasions and, 55; Keynes and, 26, 96–97; League of Nations and, 25–26; Lend-Lease and, 108 (see also Lend-Lease Act); lingering Bretton Woods issues and, 253, 259–72, 276, 293–94; London Economic Conference and, 26, 29, 33; macroeconomics and, 262; The Means to Prosperity and, 86–87; Morgenthau Plan and, 267, 269–70; National Recovery Administration and, 87; New Deal and, 21, 87, 206; Octagon and, 261; Pearl Harbor attack and, 53; postwar policy and, 267, 269–70; “Quarantine the Aggressors” speech and, 47; Quebec Agreement and, 261–65, 268, 270–72, 281; questionable legal maneuvering by, 101–2; Sherwood and, 99–100; Ten-Point Note and, 55; Tobey and, 10; ultimatum to Japan and, 55–56; undervalued currencies and, 25–26; U.S. dollar and, 26–28, 108; U.S.


pages: 614 words: 174,226

The Economists' Hour: How the False Prophets of Free Markets Fractured Our Society by Binyamin Appelbaum

"Robert Solow", airline deregulation, Alvin Roth, Andrei Shleifer, anti-communist, battle of ideas, Benoit Mandelbrot, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business cycle, capital controls, Carmen Reinhart, Cass Sunstein, Celtic Tiger, central bank independence, clean water, collective bargaining, Corn Laws, correlation does not imply causation, Credit Default Swap, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, desegregation, Diane Coyle, Donald Trump, ending welfare as we know it, financial deregulation, financial innovation, fixed income, floating exchange rates, full employment, George Akerlof, George Gilder, Gini coefficient, greed is good, Growth in a Time of Debt, income inequality, income per capita, index fund, inflation targeting, invisible hand, Isaac Newton, Jean Tirole, John Markoff, Kenneth Arrow, Kenneth Rogoff, land reform, Long Term Capital Management, low cost airline, manufacturing employment, means of production, Menlo Park, minimum wage unemployment, Mohammed Bouazizi, money market fund, Mont Pelerin Society, Network effects, new economy, oil shock, Paul Samuelson, Philip Mirowski, plutocrats, Plutocrats, price stability, profit motive, Ralph Nader, RAND corporation, rent control, rent-seeking, Richard Thaler, road to serfdom, Robert Bork, Robert Gordon, Ronald Coase, Ronald Reagan, Sam Peltzman, Silicon Valley, Simon Kuznets, starchitect, Steve Jobs, supply-chain management, The Chicago School, The Great Moderation, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, transaction costs, trickle-down economics, ultimatum game, Unsafe at Any Speed, urban renewal, War on Poverty, Washington Consensus

“Nobody in Europe believes in the American way of life, that is, private enterprise, or rather, those who believe in it are a defeated party which seems to have no more future than the Jacobites in England after 1688,” the British political commentator A. J. P. Taylor said on a BBC radio broadcast in 1945.24 In the early years after World War II, it was also hard to find Americans who believed in that version of the American way of life. Hayek, who was born in Austria in 1899, and whose career took root before the Great Depression, was raised in the free-market faith and never abandoned it. In his most famous book, The Road to Serfdom, published in 1944, Hayek attacked the interventionist brand of economics associated with John Maynard Keynes. Hayek argued that socialism was bad and that the expansion of government’s role in managing the economy was a slippery slope that would end in socialism. Hayek’s attack on the logic of socialism was powerful and enduring. He argued that prices in an open marketplace conveyed far more information than any bureaucracy could possibly compile, and transactions based on those prices allocated resources far more efficiently than any bureaucracy could possibly achieve.

Director graduated and, after dabbling in socialism for a few years, enrolled as a graduate student in economics at the University of Chicago in 1927. He never completed a doctorate, but he left Chicago in 1934 with a convert’s fervent faith in the cause of free-market economics. During World War II, Director persuaded the University of Chicago Press to publish an American edition of Hayek’s book The Road to Serfdom. In 1946, Hayek returned the favor by persuading his friends at the Volker Fund — the Kansas City nonprofit devoted to libertarian causes — to cover the cost of a position for Director at Chicago’s law school.35 Thus began an unusual academic career. During his two decades on the Chicago faculty, Director published almost nothing, yet the mark he left on a generation of Chicago-trained lawyers made him one of the most important legal thinkers of his time.


pages: 192 words: 72,822

Freedom Without Borders by Hoyt L. Barber

accounting loophole / creative accounting, Affordable Care Act / Obamacare, Albert Einstein, banking crisis, diversification, El Camino Real, estate planning, fiat currency, financial independence, fixed income, high net worth, illegal immigration, interest rate swap, money market fund, obamacare, offshore financial centre, passive income, quantitative easing, reserve currency, road to serfdom, selective serotonin reuptake inhibitor (SSRI), too big to fail

The author is founder of World Service Authority and has an interesting personal story of individual sovereignty. The Virtues of Selfishness: A New Concept of Egoism, by Ayn Rand. A Signet Book, New American Library, New York, 1964. How I Found Freedom in an Unfree World, by Harry Browne. Avon Books, New York, 1974. The New Approach to Freedom, by E. C. Riegel. The Heather Foundation, San Pedro, CA, 1976. The Road to Serfdom: A Classic Warning against the Dangers to Freedom Inherent in Social Planning, by F. A. Hayek. University of Chicago Press, Chicago, 1976. Flight from Inflation: The Monetary Alternative, by E. C. Riegel. The Heather Foundation, Los Angeles, 1978. Mark Skousen’s Complete Guide to Financial Privacy. Alexandria House Books, Alexandria, VA, 1979. The Market for Liberty, by Morris and Linda Tannehill.


Reaganland: America's Right Turn 1976-1980 by Rick Perlstein

"Robert Solow", 8-hour work day, affirmative action, airline deregulation, Alistair Cooke, American Legislative Exchange Council, anti-communist, Ayatollah Khomeini, Berlin Wall, Bernie Sanders, Brewster Kahle, business climate, clean water, collective bargaining, colonial rule, COVID-19, Covid-19, creative destruction, crowdsourcing, cuban missile crisis, currency peg, death of newspapers, defense in depth, Deng Xiaoping, desegregation, Donald Trump, energy security, equal pay for equal work, facts on the ground, feminist movement, financial deregulation, full employment, global village, Golden Gate Park, illegal immigration, In Cold Blood by Truman Capote, index card, indoor plumbing, Internet Archive, invisible hand, Julian Assange, Kitchen Debate, kremlinology, land reform, Marshall McLuhan, mass immigration, MITM: man-in-the-middle, Monroe Doctrine, moral panic, mutually assured destruction, New Journalism, oil shock, open borders, Potemkin village, price stability, Ralph Nader, RAND corporation, rent control, road to serfdom, Robert Bork, rolodex, Ronald Reagan, Rosa Parks, Saturday Night Live, Silicon Valley, traveling salesman, unemployed young men, union organizing, unpaid internship, Unsafe at Any Speed, Upton Sinclair, upwardly mobile, urban decay, urban planning, urban renewal, wages for housework, walking around money, War on Poverty, white flight, WikiLeaks, Winter of Discontent, yellow journalism, Yom Kippur War, zero-sum game

In 1947 the Advertising Council spent $100 million on a promotional campaign preaching that the free market was “the most democratic institution ever devised by man.” General Electric distributed millions of copies of a cartoon version of the laissez-faire economist Friedrich Hayek’s best-selling 1944 polemic The Road to Serfdom, which argued that when government told businesses what to do, the inevitable result was slavery for everyone. (One drawing depicted a government commissar breaking a golf club over his knee as workers performed soul-killing calisthenics—“It is no coincidence that sports and amusements have been carefully ‘planned’ in all regimented nations.” The last panel depicted a firing squad: “What used to be an error has now become a crime against the state. Thus ends the road to serfdom!”) By 1954, companies including International Harvester and Coca-Cola and trade groups like the American Petroleum Institute were spending $50 million a year on pro-laissez-faire curriculum materials—half of what was spent nationally on regular textbooks.

All other activities of government tend to diminish freedom and hamper progress,” and complained, “The public has been taught to assume—almost instinctively—that conflicts between labor and management are generally traceable to greed and intransigence on the part of management.” His pitch yielded practically no donations. Older businessmen had lost hope the New Deal could ever be unhorsed. Younger ones didn’t find anything to complain about: that year, after all, America’s gross domestic product grew 7.1 percent. Conservatives might call this the road to serfdom. But to both ordinary and elite Americans, this kind of economic liberalism had come to seem part of the national DNA. In 1960, a conservative polling firm surveyed thousands of high school students. The majority agreed with Karl Marx: “The fairest economic system is one that ‘takes from each according to his ability’ and ‘gives to each according to his needs.’ ” Conservative views on economics were seen as the province of the sort of irrelevant cranks who voted for Barry Goldwater—who lost in a historic 1964 landslide defeat against a liberal president who got more support from corporate executives than any Democrat in the twentieth century: in a speech that year before the U.S.

“Treaty of Detroit” Nelson Lichtenstein, Walter Reuther: The Most Dangerous Man in Detroit (Urbana: University of Illinois Press, 1997), 279–80. next GM contract Ibid., 284. Advertising Council Robert Griffith, “The Selling of America: The Advertising Council and American Politics, 1942–1960,” Business History Review, autumn 1983, 401. General Electric distributed Jesse Walker, “Suspicious Minds,” Reason, December 2014. Download Road to Serfdom comic at Mises.org, accessed April 22, 2020. By 1954 Elizabeth Fones-Wolf, Selling Free Enterprise: The Business Assault on Labor and Liberalism, 1945–1950 (Urbana: University of Illinois Press,1995), 204. only legitimate role William F. Buckley, “National Review: Statement of Intentions (1955),” in Gregory Schneider, ed., Conservatism Since 1930: A Reader (New York: NYU Press, 2003), 195–200.


Basic Income: A Radical Proposal for a Free Society and a Sane Economy by Philippe van Parijs, Yannick Vanderborght

"Robert Solow", Airbnb, Albert Einstein, basic income, Berlin Wall, Bertrand Russell: In Praise of Idleness, centre right, collective bargaining, cryptocurrency, David Graeber, declining real wages, diversified portfolio, Edward Snowden, eurozone crisis, Fall of the Berlin Wall, feminist movement, full employment, future of work, George Akerlof, illegal immigration, income per capita, informal economy, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kickstarter, Marshall McLuhan, means of production, minimum wage unemployment, open borders, Paul Samuelson, pension reform, precariat, price mechanism, profit motive, purchasing power parity, quantitative easing, race to the bottom, road to serfdom, Second Machine Age, secular stagnation, selection bias, sharing economy, sovereign wealth fund, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Tobin tax, universal basic income, urban planning, urban renewal, War on Poverty, working poor

Restriction of access in the first sense [licenses, minimum wage, and so forth], plus ill-Â�conceived welfare meaÂ�sures, have made millions of Â�people dependent on government for their most elementary needs.â•‹.â•‹.â•‹.╋╉I support a negative income tax not Â�because I believe anyone has a “right” to be fed, clothed, and Â�housed at someone Â�else’s expense but Â�because I want to join my fellow taxpayers in relieving distress and feel a special compulsion to do so Â�because governmental policies have been responsible for putting so many of our fellow citizens in the demeaning position in which they now find themselves.70 Or again: “I see the negative income tax as the only device yet suggested by anybody that would bring us out of the current welfare mess and still meet our responsibilities to the Â�people whom the program has got in trouÂ�ble.” 71 Thus, what justifies a guaranteed income, in Friedman’s view, is only a damage-Â�control argument. This is not the case, it is worth noting at this point, for the other founding Â�father of “neoliberalism,” Friedrich Hayek (1899–1992), Friedman’s colleague at the University of Chicago and fellow Nobel Memorial Prize winner. From The Road to Serfdom (1944) to Law, Legislation and Liberty (1979), Hayek unambiguously supported a minimum-Â� income scheme as a permanent feature of a Â�free society. He does reject “the security of the parÂ�ticÂ�uÂ�lar income a person is thought to deserve” Â�because “it can be provided only for some and only by controlling or abolishing the market.” Instead, “the security of a minimum income,” which can be “provided for all outside of and supplementary to the market system,” is “an indispensable condition of real liberty”: “Â�There is no reason why in a society which has reached the general level of wealth which ours has attained [the security of a minimum income] should not be guaranteed to all without endangering general freedom.

Hattersley, Charles Marshall. 1922/2004. The Community’s Credit. A Consideration of the PrinciÂ�ple and Proposals of the Social Credit Movement. Excerpt in J. Cunliffe and G. Erreygers, eds., The Origins of Universal Grants, 141–148. Basingstoke: Palgrave Macmillan. Haveman, Robert H. 1988. “The Changed Face of Poverty: A Call for New Policies.” Focus 11(2): 10–14. Hayek, Friedrich A. 1944/1986. The Road to Serfdom. London: Routledge and Kegan Paul, ARK ed. —Â� —Â� —. 1945. “The Use of Knowledge in Society.” American Economic Review 35(4): 519–530. —Â�—Â�—. 1949/1967. “The Intellectuals and Socialism.” In Hayek, Studies in Philosophy, Politics and Economics, 178–194. London: Routledge. —Â�—Â�—. 1979. Law, Legislation and Liberty, vol. 3. Chicago: University of Chicago Press. 344 B ibliogra p hy Healy, Seán, Michelle Murphy, and Brigid Reynolds. 2013.


pages: 225 words: 11,355