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The Accidental Theorist: And Other Dispatches From The Dismal Science (1999)

The Accidental Theorist: And Other Dispatches from the Dismal Science (1999)

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3.85 of 5 Votes: 2
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ISBN
0393318877 (ISBN13: 9780393318876)
Language
English
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w. w. norton & company

About book The Accidental Theorist: And Other Dispatches From The Dismal Science (1999)

It's impossible to read these twenty-year-old essays and not feel like many of them haven't aged a day. Whether you agree with them or not, or whether you even like the infamously acerbic Krugman or not, to a remarkable extent the logic behind the majority of these columns still feels fresh and relevant. I'm a big fan of his for a few reasons: I learned a lot of macro from his writings in grad school, I enjoy his lucid writing style, and I share his social-democratic political leanings with an appreciation for free trade and strong markets. All of these elements are here (though he's still in his "criticize both sides equally" phase; the first few essays have a slight hippie-punching feel to them before he gets around to deflating conservative myths), and out of his pre-George W. Bush books this might be the strongest of the lot due to its wide range of subjects and compact ability to educate and entertain.Krugman's mission in this assortment of Slate columns is popularization, taking on a Carl Sagan-ish role of accessibly discussing contemporary economic issues. And, much like Sagan, in addition to simply explaining what simple concepts are he also wants his readers to respect the idea of rigor, and to have an appreciation of how difficult it is to make true intellectual progress when it comes to seemingly-simple economic questions. Complicated subjects like inequality ("An Unequal Exchange"), inflation (like "A Good Word For Inflation"), technological progress ("Technology's Wonders"), unemployment ("What Is Wrong With Japan"), and commodity speculation ("How Copper Came a Cropper") have clearly presented numbers and reasoning, with an eye towards teaching the reader how to know when someone is grounding their analysis in facts or opinion. He's of course unsparing in his criticism of people who he thinks are fools or liars, but even if you don't like Krugman because of his tone, facts don't lie; it really is truly remarkable that a guy like Newt Gingrich is even stupider today than he was back in 1995.One of the main takeaways from this this essay collection, above and beyond whether you agree with any specific column or not, is that it really helps to have a consistent framework for thinking about economic issues. Is globalization good or bad? Should the US reduce the trade deficit? What are the effects of inflation on interest rates? Can we reduce unemployment to zero and have fast growth like we did in the 60s? One well-thought-out theory can be worth dozens of unsorted facts. Not every essay is as strong as it could be, but even a blunt and infuriating essay like "In Praise of Cheap Labor" is more sophisticated than its critics admit, and looks stronger every day that formerly closed countries like China develop and transform their sweatshops into boring Western 9-to-5s. He hasn't ever written a big profession-shaking epic like his hero Keynes, and at this phase in his career he probably won't ever get around to it, but his guiding ethos of progress through and with - not instead of - capitalism remains a worthy philosophy to subscribe to.

It's a beautiful thing when a real scholar makes an accessible foray into the realm of ordinary people, not least because he has the background to smash the foolhardy platitudes of so many self-important pundits. (Oddly, he comes across as a bit self-important himself...) Though Krugman is clearly a liberal he dishes out the punishment to left and right. Unfortunately, at times we are forced to accept some of his conclusions on nothing but his authority, but overall the book is acceptably argued and very informative. It's a nice introduction to some basic economic concepts and a decent survey of 80s and 90s economics.

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I like Paul Krugman, he's really good at explaining economics, and his take on economic conservatism and health care is illuminating:The reason, I believe, is that the political appeal of economic conservatism in the United States really has little to do with an appreciation of the virtues of free markets. Instead it is about the promise of something for nothing – a rejection of the idea taxes must be collected, that scarce resources must be conserved. The reason the electorate likes tax reform schemes is that they always end up being tax-cutting schemes, based on the premise that the voters pay taxes but someone else pays the benefits – even though anyone who looks at where the money actually goes quickly realizes that Pogo was right: We have met the enemy and they are us (p. 178)...Why can’t we seem to keep a lid on medical costs? The answer – the clean little secret of health care – is simple: We actually do get something for our money. In fact, there is a consensus among health care experts that the main driving force behind rising costs is neither greed, nor inefficiency, nor even the aging of our population, but technological progress. Medical expenditures used to be small, not because doctors were cheap or hospitals were well managed, but because there was only so much medicine had to offer, no matter how much you were willing to spend. Since the 1940s, however, every year has brought new medical advances: new diagnostic techniques that can (at great expense) identify problems that can only be guessed at; new surgical procedures that can (at great expense) correct problems that could previously only be allowed to take their course; new therapies that can (at great expense) cure or alleviate conditions that could previously only be endured. We spend ever more on medicine mainly because we keep on finding good new things that (a lot of) money can buy. (p. 186-87) One part of the book that is confusing is that it consists of a series of columns written in the mid-1990s, and it jumps around a lot, and it's hard to remember what was going on at the time, how bad the Mexican Tequila crisis and the Asian IMF crises was, and how optimistic people were about the Internet and the New Economy, a little more context would be helpful. Also, Krugman does such a good job of refuting other economists in the book, it makes me wonder if it really is that simple, it probably isn't but without a fuller understanding of the other side, Krugman is simply TOO good of an advocate.
—Doug

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