The prudent administrator clearly recognizes the differences between authority and power. The first is the right to wield power and the second is the actual exercise of power. Joseph B. Eastman, as federal coordinator of transportation, had the authority to require acts of railroad coordination but lacked the power. When he tried to exercise authority as though it were power, the railroads combined with the unions and deprived him of his authority.

Earl Latham, in this analysis of the politics of administration, makes use of hitherto unpublished letters and memoranda written by Eastman. Coming at a time when the railroad industry is suffering acutely from its chronic problem of excessive separatism, The Politics of Railroad Coordination is a thought-provoking application of power group analysis to a major problem of administration. It will be of particular interest to persons concerned with problems of the regulation of industry, public administration, the transportation industry, and the method of power group analysis.

The electric power industry has been transformed over the past forty years, becoming more reliable and resilient while meeting environmental goals. A big question now is how to prevent backsliding.

Pollution, Politics, and Power tells the story of the remarkable transformation of the electric power industry over the last four decades. Electric power companies have morphed from highly polluting regulated monopolies into competitive, deregulated businesses that generate, transmit, and distribute cleaner electricity. Power companies are investing heavily in natural gas and utility-scale renewable resources and have stopped building new coal-fired plants. They facilitate end-use efficiency and purchase excess electricity produced by rooftop solar panels and backyard wind turbines, helping to reduce greenhouse-gas emissions.

But these beneficial changes have come with costs. The once-powerful coal industry is on the edge of ruin, with existing coal-fired plants closing and coal mines shutting down. As a result, communities throughout Appalachia suffer from high unemployment and reduced resources, which have exacerbated a spiraling opioid epidemic. The Trump administration’s efforts to revive the coal industry by scaling back environmental controls and reregulating electricity prices have had little effect on the coal industry’s decline.

Major advances therefore come with warning signs, which we must heed in charting the continuing course of sustainable electricity. In Pollution, Politics, and Power, Thomas O. McGarity examines the progress made, details lessons learned, and looks to the future with suggestions for building a more sustainable grid while easing the economic downsides of coal’s demise.

From tax and household registers, law codes, and other primary sources, as well as recent Japanese sources, William Wayne Farris has developed the first systematic, scientific analysis of early Japanese population, including the role of disease in economic development. This work provides a comprehensive study of land clearance, agricultural technology, and rural settlement. The function and nature of ritsuryō institutions are reinterpreted within the revised demographic and economic setting.

Farris’s text is illustrated with maps, population pyramids for five localities, and photographs and translations of portions of tax and household registers, which throw further light on the demography and economy of Japan in the seventh, eighth, and ninth centuries.

At once a Technicolor wonderland and the embodiment of American mythology, Las Vegas exists at the Ground Zero of a reverence for risk-taking and the transformative power of a winning hand. Jake Johnson edits a collection of short essays and flash ideas that probes how music-making and soundscapes shape the City of Second Chances. Treating topics ranging from Cher to Cirque de Soleil, the contributors delve into how music and musicians factored in the early development of Vegas’s image; the role of local communities of musicians and Strip mainstays in sustaining tensions between belief and disbelief; the ways aging showroom stars provide a sense of timelessness that inoculates visitors against the outside world; the link connecting fantasies of sexual prowess and democracy with the musical values of Liberace and others; considerations of how musicians and establishments gambled with identity and opened the door for audience members to explore Sin City–only versions of themselves; and the echoes and energy generated by the idea of Las Vegas as it travels across the country.

Contributors: Celine Ayala, Kirstin Bews, Laura Dallman, Joanna Dee Das, James Deaville, Robert Fink, Pheaross Graham, Jessica A. Holmes, Maddie House-Tuck, Jake Johnson, Kelly Kessler, Michael Kinney, Carlo Lanfossi, Jason Leddington, Janis McKay, Sam Murray, Louis Niebur, Lynda Paul, Arianne Johnson Quinn, Michael M. Reinhard, Laura Risk, Cassaundra Rodriguez, Arreanna Rostosky, and Brian F. Wright

As the electric power industry faces the challenges of climate change, technological disruption, new market imperatives, and changing policies, a renowned energy expert offers a roadmap to the future of this essential sector.

As the damaging and costly impacts of climate change increase, the rapid development of sustainable energy has taken on great urgency. The electricity industry has responded with necessary but wrenching shifts toward renewables, even as it faces unprecedented challenges and disruption brought on by new technologies, new competitors, and policy changes. The result is a collision course between a grid that must provide abundant, secure, flexible, and affordable power, and an industry facing enormous demands for power and rapid, systemic change.

The fashionable solution is to think small: smart buildings, small-scale renewables, and locally distributed green energy. But Peter Fox-Penner makes clear that these will not be enough to meet our increasing needs for electricity. He points instead to the indispensability of large power systems, battery storage, and scalable carbon-free power technologies, along with the grids and markets that will integrate them. The electric power industry and its regulators will have to provide all of these, even as they grapple with changing business models for local electric utilities, political instability, and technological change. Power after Carbon makes sense of all the moving parts, providing actionable recommendations for anyone involved with or relying on the electric power system.

Hayek Book Prize Finalist
An Economist Best Book of the Year
A Foreign Affairs Best Book of the Year

From one of the world’s leading economists and his coauthors, a cutting-edge analysis of what drives economic growth and a blueprint for prosperity under capitalism.

Crisis seems to follow crisis. Inequality is rising, growth is stagnant, the environment is suffering, and the COVID-19 pandemic has exposed every crack in the system. We hear more and more calls for radical change, even the overthrow of capitalism. But the answer to our problems is not revolution. The answer is to create a better capitalism by understanding and harnessing the power of creative destruction—innovation that disrupts, but that over the past two hundred years has also lifted societies to previously unimagined prosperity.

To explain, Philippe Aghion, Céline Antonin, and Simon Bunel draw on cutting-edge theory and evidence to examine today’s most fundamental economic questions, including the roots of growth and inequality, competition and globalization, the determinants of health and happiness, technological revolutions, secular stagnation, middle-income traps, climate change, and how to recover from economic shocks. They show that we owe our modern standard of living to innovations enabled by free-market capitalism. But we also need state intervention with the appropriate checks and balances to simultaneously foster ongoing economic creativity, manage the social disruption that innovation leaves in its wake, and ensure that yesterday’s superstar innovators don’t pull the ladder up after them to thwart tomorrow’s. A powerful and ambitious reappraisal of the foundations of economic success and a blueprint for change, The Power of Creative Destruction shows that a fair and prosperous future is ultimately ours to make.

Hayek Book Prize Finalist
An Economist Best Book of the Year
A Foreign Affairs Best Book of the Year
A Financial Times Summer Reading Favorite

“Sweeping, authoritative and—for the times—strikingly upbeat…The overall argument is compelling and…it carries a trace of Schumpeterian subversion.”
—The Economist

“[An] important book…Lucid, empirically grounded, wide-ranging, and well-argued.”
—Martin Wolf, Financial Times

“Offers…much needed insight into the sources of economic growth and the kinds of policies that will promote it…All in Washington would do well to read this volume carefully.”
—Milton Ezrati, Forbes

Inequality is on the rise, growth stagnant, the environment in crisis. Covid seems to have exposed every crack in the system. We hear calls for radical change, but the answer is not to junk our economic system but to create a better form of capitalism.

An ambitious reappraisal of the foundations of economic success that shows a fair and prosperous future is ours to make, The Power of Creative Destruction draws on cutting-edge theory and hard evidence to examine today’s most fundamental economic questions: what powers growth, competition, globalization, and middle-income traps; the roots of inequality and climate change; the impact of technology; and how to recover from economic shocks. We owe our modern standard of living to innovations enabled by free-market capitalism, it argues, but we also need state intervention—with checks and balances—to foster economic creativity, manage social disruption, and ensure that yesterday’s superstar innovators don’t pull the ladder up after them.

What is it about free-market ideas that give them tenacious staying power in the face of such manifest failures as persistent unemployment, widening inequality, and the severe financial crises that have stressed Western economies over the past forty years? Fred Block and Margaret Somers extend the work of the great political economist Karl Polanyi to explain why these ideas have revived from disrepute in the wake of the Great Depression and World War II, to become the dominant economic ideology of our time.

Polanyi contends that the free market championed by market liberals never actually existed. While markets are essential to enable individual choice, they cannot be self-regulating because they require ongoing state action. Furthermore, they cannot by themselves provide such necessities of social existence as education, health care, social and personal security, and the right to earn a livelihood. When these public goods are subjected to market principles, social life is threatened and major crises ensue.

Despite these theoretical flaws, market principles are powerfully seductive because they promise to diminish the role of politics in civic and social life. Because politics entails coercion and unsatisfying compromises among groups with deep conflicts, the wish to narrow its scope is understandable. But like Marx's theory that communism will lead to a "withering away of the State," the ideology that free markets can replace government is just as utopian and dangerous.

A provocative history of the changing values that have given rise to our present discontents.

We pursue power, pleasure, and profit. We want as much as we can get, and we deploy instrumental reasoning—cost-benefit analysis—to get it. We judge ourselves and others by how well we succeed. It is a way of life and thought that seems natural, inevitable, and inescapable. As David Wootton shows, it is anything but. In Power, Pleasure, and Profit, he traces an intellectual and cultural revolution that replaced the older systems of Aristotelian ethics and Christian morality with the iron cage of instrumental reasoning that now gives shape and purpose to our lives.

Wootton guides us through four centuries of Western thought—from Machiavelli to Madison—to show how new ideas about politics, ethics, and economics stepped into a gap opened up by religious conflict and the Scientific Revolution. As ideas about godliness and Aristotelian virtue faded, theories about the rational pursuit of power, pleasure, and profit moved to the fore in the work of writers both obscure and as famous as Hobbes, Locke, and Adam Smith. The new instrumental reasoning cut through old codes of status and rank, enabling the emergence of movements for liberty and equality. But it also helped to create a world in which virtue, honor, shame, and guilt count for almost nothing, and what matters is success.

Is our world better for the rise of instrumental reasoning? To answer that question, Wootton writes, we must first recognize that we live in its grip.

“A superb, field-changing book…A true classic.”
—Sunil Amrith

“Makes a major contribution towards a necessary discussion of the politics of aid.”
—Times Higher Education

Debates over foreign aid are often strangely ahistorical. Economists argue about effectiveness—how to make aid work—while critics bemoan money wasted on corruption, ignoring the fundamentally political character of aid. The Price of Aid exposes the geopolitical calculus underpinning development assistance, and its costs.

India stood at the center of American and Soviet aid competition throughout the Cold War, as both superpowers saw developmental aid as a way of pursuing their geopolitical goals by economic means. Drawing on recently declassified files from seven countries, David Engerman shows how Indian leaders used Cold War competition to win battles at home, eroding the Indian state in the process. As China spends freely in Africa, the political stakes of foreign aid are rising once again.

“A magnificent book. Anyone who seeks to understand contemporary India and its development struggles will have to start here. Engerman’s work is not only enlightening, it turns much of what we thought we knew about India, foreign aid, and the Cold War in South Asia upside down.”
—O. A. Westad, author of The Cold War

“An outstanding history…Drawing on an unprecedented array of official and private archives in India, Russia, the United States, and Britain, Engerman offers a superb account—one that integrates the ideologies and policies of the superpowers with a sharp analysis of the push-and-pull of policymaking in India. This is a landmark study of independent India as well as the Cold War.”
—Srinath Raghavan, author of India’s War

Why and how systems of political financing and representation in Europe and North America give outsized influence to the wealthy and undermine democracy, and what we can do about it.

One person, one vote. In theory, everyone in a democracy has equal power to decide elections. But it’s hardly news that, in reality, political outcomes are heavily determined by the logic of one dollar, one vote. We take the political power of money for granted. But does it have to be this way? In The Price of Democracy, Julia Cagé combines economic and historical analysis with political theory to show how profoundly our systems in North America and Europe, from think tanks and the media to election campaigns, are shaped by money. She proposes fundamental reforms to bring democracy back into line with its egalitarian promise.

Cagé shows how different countries have tried to develop legislation to curb the power of private money and to develop public systems to fund campaigns and parties. But these attempts have been incoherent and unsystematic. She demonstrates that it is possible to learn from these experiments in the United States, Europe, and elsewhere to design a better system that would increase political participation and trust. This would involve setting a strict cap on private donations and creating a public voucher system to give each voter an equal amount to spend in support of political parties. More radically, Cagé argues that a significant fraction of seats in parliamentary assemblies should be set aside for representatives from disadvantaged socioeconomic groups.

At a time of widespread political disenchantment, The Price of Democracy is a bracing reminder of the problems we face and an inspirational guide to the potential for reform.

How did Americans come to quantify their society’s progress and well-being in units of money? In today’s GDP-run world, prices are the standard measure of not only our goods and commodities but our environment, our communities, our nation, even our self-worth. The Pricing of Progress traces the long history of how and why we moderns adopted the monetizing values and valuations of capitalism as an indicator of human prosperity while losing sight of earlier social and moral metrics that did not put a price on everyday life.

Eli Cook roots the rise of economic indicators in the emergence of modern capitalism and the contested history of English enclosure, Caribbean slavery, American industrialization, economic thought, and corporate power. He explores how the maximization of market production became the chief objective of American economic and social policy. We see how distinctly capitalist quantification techniques used to manage or invest in railroad corporations, textile factories, real estate holdings, or cotton plantations escaped the confines of the business world and seeped into every nook and cranny of society. As economic elites quantified the nation as a for-profit, capitalized investment, the progress of its inhabitants, free or enslaved, came to be valued according to their moneymaking abilities.

Today as in the nineteenth century, political struggles rage over who gets to determine the statistical yardsticks used to gauge the “health” of our economy and nation. The Pricing of Progress helps us grasp the limits and dangers of entrusting economic indicators to measure social welfare and moral goals.

At some point in the course of evolution—from a primeval social organization of early hominids—all human societies, past and present, would emerge. In this account of the dawn of human society, Bernard Chapais shows that our knowledge about kinship and society in nonhuman primates supports, and informs, ideas first put forward by the distinguished social anthropologist, Claude Lévi-Strauss.

Chapais contends that only a few evolutionary steps were required to bridge the gap between the kinship structures of our closest relatives—chimpanzees and bonobos—and the human kinship configuration. The pivotal event, the author proposes, was the evolution of sexual alliances. Pair-bonding transformed a social organization loosely based on kinship into one exhibiting the strong hold of kinship and affinity. The implication is that the gap between chimpanzee societies and pre-linguistic hominid societies is narrower than we might think.

Many books on kinship have been written by social anthropologists, but Primeval Kinship is the first book dedicated to the evolutionary origins of human kinship. And perhaps equally important, it is the first book to suggest that the study of kinship and social organization can provide a link between social and biological anthropology.

Like other dangerous but pleasurable activities, such as downhill skiing and mountain climbing, engaging in unprotected sex implicitly involves the weighing of costs and benefits. Recognizing that the transmission of the AIDS virus is a consequence of private choices—rational and often informed—to engage in risky conduct, the authors employ tools of economic analysis to reassess the orthodox approach to AIDS by the public health community.

Standard predictions of the spread of AIDS, the authors argue, are questionable because they ignore rational behavioral response to the risk of infection. For the same reason, customary recommended public health measures, such as extensive testing for the AIDS virus, not only may be ineffective in controlling the spread of the disease but may actually cause it to spread more rapidly. The authors examine regulatory measures and proposals such as mandatory testing, criminal punishments, and immigration controls, as well as the subsidization of AIDS education and medical research, the social and fiscal costs of AIDS, the political economy of the government's response, and the interrelation of AIDS and fertility risk.

Neither liberal nor conservative, yet on the whole skeptical about governmental involvement in the epidemic, this book is certain to be controversial, but its injection of hard-headed economic thinking into the AIDS debate is long overdue. Although Private Choices and Public Health is accessible to the interested general reader, it will also capture the attention of economists—especially those involved in health issues—epidemiologists, public health workers, lawyers, and specialists in sexual behavior and drug addiction.

Preference falsification, according to the economist Timur Kuran, is the act of misrepresenting one's wants under perceived social pressures. It happens frequently in everyday life, such as when we tell the host of a dinner party that we are enjoying the food when we actually find it bland. In Private Truths, Public Lies Kuran argues convincingly that the phenomenon not only is ubiquitous but has huge social and political consequences. Drawing on diverse intellectual traditions, including those rooted in economics, psychology, sociology, and political science, Kuran provides a unified theory of how preference falsification shapes collective decisions, orients structural change, sustains social stability, distorts human knowledge, and conceals political possibilities.

A common effect of preference falsification is the preservation of widely disliked structures. Another is the conferment of an aura of stability on structures vulnerable to sudden collapse. When the support of a policy, tradition, or regime is largely contrived, a minor event may activate a bandwagon that generates massive yet unanticipated change.

In distorting public opinion, preference falsification also corrupts public discourse and, hence, human knowledge. So structures held in place by preference falsification may, if the condition lasts long enough, achieve increasingly genuine acceptance. The book demonstrates how human knowledge and social structures co-evolve in complex and imperfectly predictable ways, without any guarantee of social efficiency.

Private Truths, Public Lies uses its theoretical argument to illuminate an array of puzzling social phenomena. They include the unexpected fall of communism, the paucity, until recently, of open opposition to affirmative action in the United States, and the durability of the beliefs that have sustained India's caste system.

The question of the comparative efficiency of socialism, long debated in theoretical discussions, is explored in depth in these studies. Abram Bergson, one of the foremost Western scholars of the Soviet system, focuses especially on socialism as found in the USSR, and thus on the famous “Soviet model.” This includes centralist planning with its reliance on bureaucratic, as distinct from market processes, and a development strategy stressing growth and, until recently, limited economic relations with the capitalist West. Devoting some attention also to the experience with the “Soviet model” in Eastern Europe, Bergson compares the resulting economic performance with that in the West. The United States is the major Western country considered, but Western European nations are also studied with care and precision.

The “Soviet model” has been evolving in the course of time, and these studies explore recent developments in planning, particularly managerial incentives and controls, and growth strategy. In contrasting Eastern and Western economic performance, Bergson uses sophisticated quantitative techniques to contrast levels and growth of productivity while allowing for differences in historical factors, especially the stage of economic development. Productivity is considered both for the economy generally and for its sectors. Although socialist efficiency is investigated mainly through the Soviet case, this path-breaking book should serve as a point of departure for further inquiries into that large theme.

As the federal government’s programs have increased in complexity, with regard both to world and national affairs and to state and local interests, the problems of decision making have become vastly more intricate. This book is designed to help improve understanding of the principles of program budgeting in relation to the decisionmaking process in the federal government; to stimulate others to develop these ideas further; and to accelerate the application of program budgeting in governmental activities.

Divided into three sections, the book begins with a discussion of the government decisionmaking process, the role of budgeting, and efforts made in past years by the federal government to improve the planning–programming–budgeting process. The second section covers the introduction of program budgeting in the Department of Defense and possible application to other federal activities. The third section deals with the subject of implementation and operation of the program budget and discusses an operating federal program budget in terms of its usefulness to specific areas.

Law and economics is the leading intellectual movement in law today. This book examines the first great law and economics movement in the early part of the twentieth century through the work of one of its most original thinkers, Robert Hale. Beginning in the 1890s and continuing through the 1930s, progressive academics in law and economics mounted parallel assaults on free-market economic principles. They showed first that "private," unregulated economic relations were in fact determined by a state-imposed regime of property and contract rights. Second, they showed that the particular regime of rights that existed at that time was hard to square with any common-sense notions of social justice.

Today, Hale is best known among contemporary legal academics and philosophers for his groundbreaking writings on coercion and consent in market relations. The bulk of his writing, however, consisted of a critique of natural property rights. Taken together, these writings on coercion and property rights offer one of the most profound and elaborated critiques of libertarianism, far outshining the better-known efforts of Richard Ely and John R. Commons. In his writings on public utility regulation, Hale also made important contributions to a theory of just, market-based distribution.

This first, full-length study of Hale's work should be of interest to legal, economic, and intellectual historians.

The Progressive Era has been depicted as a seismic event in American history—a landslide of reform that curbed capitalist excesses and reduced the gulf between rich and poor. Progressive Inequality cuts against the grain of this popular consensus, demonstrating how income inequality’s growth prior to the stock market crash of 1929 continued to aggravate class divisions. As David Huyssen makes clear, Progressive attempts to alleviate economic injustice often had the effect of entrenching class animosity, making it more, not less, acute.

Huyssen interweaves dramatic stories of wealthy and poor New Yorkers at the turn of the twentieth century, uncovering how initiatives in charity, labor struggles, and housing reform chafed against social, economic, and cultural differences. These cross-class actions took three main forms: prescription, in which the rich attempted to dictate the behavior of the poor; cooperation, in which mutual interest engendered good-faith collaboration; and conflict, in which sharply diverging interests produced escalating class violence. In cases where reform backfired, it reinforced a set of class biases that remain prevalent in America today, especially the notion that wealth derives from individual merit and poverty from lack of initiative.

A major contribution to the history of American capitalism, Progressive Inequality makes tangible the abstract dynamics of class relations by recovering the lived encounters between rich and poor—as allies, adversaries, or subjects to inculcate—and opens a rare window onto economic and social debates in our own time.

Drawing on a wealth of historical sources, Lloyd demonstrates that despite the persistent hope that a new technology (from the telegraph to the Internet) will rise to serve the needs of the republic, none has solved the fundamental problems created by corporate domination. After examining failed alternatives to the strong publicly owned communications model, such as antitrust regulation, the public trustee rules of the Federal Communications Commission, and the underfunded public broadcasting service, Lloyd argues that we must re-create a modern version of the Founder’s communications environment, and offers concrete strategies aimed at empowering citizens.

The private pension is a curiosity in the modern economic environment. Why do profit-seeking companies pay retirement benefits to those no longer on the job? In this new institutional history, Steven Sass explores the rise and growth of the financial support system that today commands trillions of dollars of investment capital and supports hundreds of thousands of older Americans.

Before 1900 America's elderly derived their livelihood from simple sources. They worked if they could, relied on their children, and took charity if necessary. By the dawn of the twentieth century, however, the country was constructing a new industrial economy. Both laborers and capital were moving away from farms toward large corporate establishments. These market changes weakened family links and traditional skills, rendering workers more vulnerable to economic shocks. The elderly, in particular, fell out of step with the new mechanized and bureaucratic regime. It was in response to these dramatic economic shifts that the institution of private pensions emerged. In return for workers' long-term loyalty, employers promised to help sustain them through old age.

As Sass shows, creating the pension system proved far more complicated than anyone had anticipated. Over the last hundred years it has evolved into a complex institution driven by congressional mandates, judicial/administrative decisions, union campaigns, political debates, and the ministrations of lawyers, economists, human resource specialists, actuaries, and insurance experts. Sass traces the U.S. pension system through to the present day, exploring how our modern corporate economy is confronting the challenges of an aging population.

This collection of essays examines Zambia’s efforts to promote economic reform during the 1990s. Following the restoration of democratic rule, the government of Zambia adopted an ambitious program designed to stabilize the economy and lay the foundation for sustained growth and development. These essays describe the adjustment program, highlighting the attempts to reform the budget, the tax system, the financial system, agriculture and mining, and to create the human capacity to sustain the reforms.

Major improvements in economic performance occurred from 1992 to 1995. After that, however, economic performance deteriorated as a result of the government’s selective abandonment of key elements of the reform program and the emergence of major governance problems. In response to international pressure, by 2001 the government completed the sale of the copper mines and qualified for large-scale debt relief. The long delays involved seriously undermined economic performance.

The volume concludes that for economic reform to succeed in Zambia, the government should scale back its development agenda to match its financial and human capacities, reduce dependence on foreign aid, adopt and maintain prudent macroeconomic policies, and support the expansion of both mining and agriculture.

Albert O. Hirschman is renowned worldwide for theories that have been at the forefront of political economics during the last half century. In these twenty essays he casts his sharp analytical eye on his own ideas, questioning and qualifying some of his major propositions on social change and economic development. Hirschman's self-subversion, as well as the self-affirmation that is also present here, reveal the workings of a distinguished mind. They also bring us fresh perspective on the material in his twelve previous books and countless essays.In the substantial essays that open this collection, Hirschman reappraises points he made in such books as Exit, Voice, and Loyalty, The Strategy of Economic Development, and The Rhetoric of Reaction. Subsequent essays fruitfully reexplore the themes of Latin American development and market society that have occupied him throughout his career. Hirschman also forays into new puzzles, such as the likely impact, negative or otherwise, of the Eastern European revolutions of 1989 on the Third World, the on-and-off connections between political and economic progress, and the role of conflict in enhancing community spirit in a liberal democracy.

In a rare and particularly welcome section of the book, Hirschman presents autobiographical fragments that reflect his deep involvement in some of the important events of this century. He recollects his flight from Hitler's Germany in 1933, his studies in Paris, his work with the antifascist underground in Italy in 1937-38, and his role in helping Varian Fry in Marseilles, in 1940, to rescue political and intellectual refugees from Vichy France. Such accounts deepen our understanding of how Hirschman's penetrating insights took shape.

Pan Am, Gimbel’s, Pullman, Douglas Aircraft, Digital Equipment Corporation, British Leyland—all once as strong as dinosaurs, all now just as extinct. Destruction of businesses, fortunes, products, and careers is the price of progress toward a better material life. No one understood this bedrock economic principle better than Joseph A. Schumpeter. “Creative destruction,” he said, is the driving force of capitalism.

Described by John Kenneth Galbraith as “the most sophisticated conservative” of the twentieth century, Schumpeter made his mark as the prophet of incessant change. His vision was stark: Nearly all businesses fail, victims of innovation by their competitors. Businesspeople ignore this lesson at their peril—to survive, they must be entrepreneurial and think strategically. Yet in Schumpeter’s view, the general prosperity produced by the “capitalist engine” far outweighs the wreckage it leaves behind.

During a tumultuous life spanning two world wars, the Great Depression, and the early Cold War, Schumpeter reinvented himself many times. From boy wonder in turn-of-the-century Vienna to captivating Harvard professor, he was stalked by tragedy and haunted by the specter of his rival, John Maynard Keynes. By 1983—the centennial of the birth of both men—Forbes christened Schumpeter, not Keynes, the best navigator through the turbulent seas of globalization. Time has proved that assessment accurate.

Prophet of Innovation is also the private story of a man rescued repeatedly by women who loved him and put his well-being above their own. Without them, he would likely have perished, so fierce were the conflicts between his reason and his emotions. Drawing on all of Schumpeter’s writings, including many intimate diaries and letters never before used, this biography paints the full portrait of a magnetic figure who aspired to become the world’s greatest economist, lover, and horseman—and admitted to failure only with the horses.

For almost four centuries, the indigenous Chiripá (Guaraní) people of eastern Paraguay have maintained themselves as a distinct society and culture, despite continual and often intense relations with Paraguayan society and the international economy. In this study, Richard K. Reed explores the economic and social basis for this ethnic autonomy.

Reed finds that Chiripá economic power derives from their practice of commercial agroforestry. Unlike Latin American indigenous societies that have been forced to clear land for commercial agriculture, the Chiripá continue to harvest and sell forest products, such as caffeinated yerba mate, without destroying the forests. Reed also explores the relation of this complex economy to Chiripá social organization and shows how flexible kin ties allowed the Chiripá to adapt to the pressure and opportunities of the commercial economy without adopting the authoritarian nature of rural Paraguayan society.

These findings offer important insights into the relations among indigenous groups, nation-states, and the international economy. They also provide a timely alternative model for sustainable management of subtropical forests that will be of interest in the fields of development and environmental studies.