Is economic equality necessary for social peace? Why do the strong oppress and impoverish the weak? How are developing nations overcoming the legacy of colonialism? These are a few of the many thought-provoking concerns addressed in this book. The first in a new series—The W. E. B. Du Bois Lectures—it tackles a wide range of topics dealing with the economics of racial conflict in important areas of the world. Race is often introduced as a key factor, whether it is or not, in such highly controversial subjects as colonialism, federalism, dual labor markets, affirmative action, multinational corporations, the international economic order, and of course discrimination itself. W. Arthur Lewis discerns the ways in which race and economics affect individuals and groups, bringing a personal viewpoint to the problems faced by both less-developed and more-developed countries.

How many black vice-presidents should a major North American corporation employ? Do East Indians and Canadians demonstrate more aptitude for business than West Indians? Does affirmative action work in education or business? Though he boldly confronts grave national and international problems, Lewis does so with wisdom, equanimity, optimism, even a touch of humor. His individualistic and commonsensical thoughts and opinions may not please or satisfy everyone, but they cannot fail to intrigue and invite discussion.

Back to the future: a heterodox economist rewrites Keynes’s General Theory of Employment, Interest, and Money to serve as the basis for a macroeconomics for the twenty-first century.

John Maynard Keynes’s General Theory of Employment, Interest, and Money was the most influential economic idea of the twentieth century. But, argues Stephen Marglin, its radical implications were obscured by Keynes’s lack of the mathematical tools necessary to argue convincingly that the problem was the market itself, as distinct from myriad sources of friction around its margins.

Marglin fills in the theoretical gaps, revealing the deeper meaning of the General Theory. Drawing on eight decades of discussion and debate since the General Theory was published, as well as on his own research, Marglin substantiates Keynes’s intuition that there is no mechanism within a capitalist economy that ensures full employment. Even if deregulating the economy could make it more like the textbook ideal of perfect competition, this would not address the problem that Keynes identified: the potential inadequacy of aggregate demand.

Ordinary citizens have paid a steep price for the distortion of Keynes’s message. Fiscal policy has been relegated to emergencies like the Great Recession. Monetary policy has focused unduly on inflation. In both cases the underlying rationale is the false premise that in the long run at least the economy is self-regulating so that fiscal policy is unnecessary and inflation beyond a modest 2 percent serves no useful purpose.

Fleshing out Keynes’s intuition that the problem is not the warts on the body of capitalism but capitalism itself, Raising Keynes provides the foundation for a twenty-first-century macroeconomics that can both respond to crises and guide long-run policy.

Zvi Griliches was a modern master of empirical economics. In this short book, he recounts what he and others have learned about the sources of economic growth. This book conveys the way he tackled research problems. For Griliches, economic theorizing without measurement is merely the fashioning of parables, but measurement without theory is blind. Judgment enables one to strike the right balance.

The book begins with economists' first attempts to measure productivity growth systematically in the 1930s. In the mid-1950s these efforts culminated in a startling puzzle. The growth of measured inputs like labor and capital explained only a fraction of the growth of national output. Economists called this phenomenon "efficiency" or "technical change" or "the residual." However, Griliches observes that the most accurate name was a "measure of our ignorance." What explained the rest of economic growth quickly became one of the most important questions in economics.

Over the next thirty years, Griliches and his colleagues and students looked for various components of the residual in education (the formation of human capital), investment (the formation of physical capital), and research and development. In 1973, after the oil price shocks, productivity growth slowed and the residual almost disappeared. Since the shocks were a short-term phenomenon, they could not account for the slowdown. A main focus of this book is therefore the puzzle of the productivity slowdown and how to date it and how to explain it.

Rationality and freedom are among the most profound and contentious concepts in philosophy and the social sciences. In two volumes on rationality, freedom, and justice, the distinguished economist and philosopher Amartya Sen brings clarity and insight to these difficult issues. This volume--the first of the two--is principally concerned with rationality and freedom.

Sen scrutinizes and departs from the standard criteria of rationality, and shows how it can be seen in terms of subjecting one's values as well as choices to the demands of reason and critical scrutiny. This capacious approach is utilized to illuminate the demands of rationality in individual choice (including decisions under uncertainty) as well as social choice (including cost benefit analysis and environmental assessment).

Identifying a reciprocity in the relationship between rationality and freedom, Sen argues that freedom cannot be assessed independently of a person's reasoned preferences and valuations, just as rationality, in turn, requires freedom of thought. Sen uses the discipline of social choice theory (a subject he has helped to develop) to illuminate the demands of reason and the assessment of freedom. The latter is the subject matter of Sen's previously unpublished Arrow Lectures included here.

The essays in these volumes contribute to Sen's ongoing transformation of economic theory and social philosophy, and to our understanding of the connections among rationality, freedom, and social justice.

Reality and Rhetoric is the culmination of P. T. Bauer’s observations and reflections on Third World economies over a period of thirty years. He critically examines the central issues of market versus centrally planned economies, industrial development, official direct and multinational resource transfers to the Third World, immigration policy in the Third World, and economic methodology. In addition, he has written a fascinating account of recent papal doctrine on income inequality and redistribution in the Third World. The major themes that emerge are the importance of non-economic variables, particularly people’s aptitudes and mores, to economic growth; the unfortunate results of some current methods of economics; the subtle but important effects of the exchange economy on development; and the politicization of economic life in the Third World.

As in Bauer’s previous writings, this book is marked by elegant prose, apt examples, a broad economic-historical perspective, and the masterful use of informal reasoning.

Macroeconomics is in disarray. No one approach is dominant, and an increasing divide between theory and empirics is evident.

This book presents both a critique of mainstream macroeconomics from a structuralist perspective and an exposition of modern structuralist approaches. The fundamental assumption of structuralism is that it is impossible to understand a macroeconomy without understanding its major institutions and distributive relationships across productive sectors and social groups.

Lance Taylor focuses his critique on mainstream monetarist, new classical, new Keynesian, and growth models. He examines them from a historical perspective, tracing monetarism from its eighteenth-century roots and comparing current monetarist and new classical models with those of the post-Wicksellian, pre-Keynesian generation of macroeconomists. He contrasts the new Keynesian vision with Keynes's General Theory, and analyzes contemporary growth theories against long traditions of thought about economic development and structural change.

Three eminent economists provide in this book a rigorous, self-contained treatment of modern economic dynamics. Nancy L. Stokey, Robert E. Lucas, Jr., and Edward C. Prescott develop the basic methods of recursive analysis and emphasize the many areas where they can usefully be applied.

After presenting an overview of the recursive approach, the authors develop economic applications for deterministic dynamic programming and the stability theory of first-order difference equations. They then treat stochastic dynamic programming and the convergence theory of discrete-time Markov processes, illustrating each with additional economic applications. They also derive a strong law of large numbers for Markov processes. Finally, they present the two fundamental theorems of welfare economics and show how to apply the methods developed earlier to general equilibrium systems.

The authors go on to apply their methods to many areas of economics. Models of firm and industry investment, household consumption behavior, long-run growth, capital accumulation, job search, job matching, inventory behavior, asset pricing, and money demand are among those they use to show how predictions can be made about individual and social behavior. Researchers and graduate students in many areas of economics, both theoretical and applied, will find this book essential.

The current products liability crisis is both familiar and puzzling: million-dollar awards for apparently frivolous claims, inadequate settlements for thousands of people with severe injuries, skyrocketing insurance premiums, an overburdened judicial system. The adverse effects of this crisis on product innovation may be particularly detrimental to the extent that they deprive consumers of newer and safer goods. W. Kip Viscusi offers the first comprehensive and objective analysis of the crisis. He employs extensive, original empirical data to diagnose the causes and to assess the merits of alternative reform policies.

Drawing on both liability insurance trends and litigation patterns, Viscusi shows that the products liability crisis is not simply a phenomenon of the 1980s but has been developing for several decades. He argues that the principal causes have been the expansion of the doctrine of design defect, the emergence of mass toxic torts, and the increase in lawsuits involving hazard warnings. This explanation differs sharply from that of most other scholars, who blame the doctrine of strict liability. Viscusi reformulates the concept of design defect, grounding it in sound economic analysis. He also evaluates public policy regarding hazard warnings and proposes a new national approach.

More generally, the author sketches a comprehensive social risk policy, in which tort liability interacts with government health and safety regulation to foster a coherent set of institutional responses to health and safety risks. Reforming Products Liability will be of special interest to lawyers, judges, policymakers, economists, and all those interested in legal policy and health and safety issues.

Are rent controls and zoning regulations unconstitutional? Should the Supreme Court strike down the Endangered Species Act when its administration interferes with the use of private property? These questions are currently debated under the doctrine of regulatory takings, and William Fischel’s book offers a new perspective on the issue.

Regulatory Takings argues that the issue is not so much about the details of property law as it is about the fairness of politics. The book employs jurisprudential theories, economic analysis, historical investigation, and political science to show why local land use regulations, such as zoning and rent control, deserve a higher degree of judicial scrutiny than national regulations. Unlike other books on this topic, Regulatory Takings goes beyond case law to buttress its arguments. Its reality checks range from reviews of statistical evidence to local inquiries about famous takings cases such as Pennsylvania Coal v. Mahon and Lucas v. South Carolina Coastal Commission. The gap between legal theory and on-the-ground practice is one reason that Fischel investigates alternative means of protecting property rights.

Local governments are often deterred from unfairly regulating portable assets by their owners’ threat of “exit” from the jurisdiction. State and federal government regulations are disciplined by property-owner coalitions whose “voice” is clearly audible in the statehouses and in Congress.

Constitutional courts need to preserve their resources for use in areas in which politics is loaded against the property owner. Regulatory Takings advances an economic standard to decide when a local regulation crosses the border from legitimate police power to a taking that requires just compensation for owners who are adversely affected.

Keynesian economics, which proposed that the government could use monetary and fiscal policy to help the economy avoid the extremes of recession and inflation, held sway for thirty years after World War II. However, it was discredited after the stagflation of the 1970s, which not only proved resistant to traditional Keynesian policies but was actually thought to be caused by them. By the 1990s, the anti-Keynesian counter-revolution seemed to reach its pinnacle with the award of several Nobel Prizes in economics to its architects at the University of Chicago.

However, with the collapse of the dot-com boom in 2000 and the attacks of 9/11 a year later, the nature of macroeconomic policy debate took a turn. The collapse prompted a major shift in macroeconomic policy, as the Bush administration and other governments around the world began to resort to Keynesian measures—both monetary and fiscal policies—to stabilize the economy. The Keynesian rebirth has been most dramatically illustrated during the past year when central banks have pumped billions of dollars of liquidity into the world’s financial system to address the crises of confidence, illiquidity, and insolvency that were triggered by the sub-prime lending crisis. The Return to Keynes puts Keynesian economics in a fresh perspective in order to assess this surprising new era in economic policy making.

The Universal Product Code (U.P.C.)—a small rectangle of black and white bars—adorns virtually every retail item we purchase. Yet twenty-five years ago, the U.P.C. was a mere kernel of an idea shared by a small cadre of manufacturing and chain store executives. Here Stephen Brown, the legal counsel of those pioneering executives, traces its origin and evolution.

The development of the U.P.C. illustrates the process of setting industry standards without government intervention and shows how systems of complementary technologies evolve. The economic consequences of the U.P.C. are investigated in an introduction by Professor John T. Dunlop and Jan Rivkin.

Combining the intellectual history of the Enlightenment, Atlantic history, and the history of the French Revolution, Paul Cheney explores the political economy of globalization in eighteenth-century France.

The discovery of the New World and the rise of Europe's Atlantic economy brought unprecedented wealth. It also reordered the political balance among European states and threatened age-old social hierarchies within them. In this charged context, the French developed a "science of commerce" that aimed to benefit from this new wealth while containing its revolutionary effects. Montesquieu became a towering authority among reformist economic and political thinkers by developing a politics of fusion intended to reconcile France's aristocratic society and monarchical state with the needs and risks of international commerce. The Seven Years' War proved the weakness of this model, and after this watershed reforms that could guarantee shared prosperity at home and in the colonies remained elusive. Once the Revolution broke out in 1789, the contradictions that attended the growth of France's Atlantic economy helped to bring down the constitutional monarchy.

Drawing upon the writings of philosophes, diplomats, consuls of commerce, and merchants, Cheney rewrites the history of political economy in the Enlightenment era and provides a new interpretation of the relationship between capitalism and the French Revolution.

The financial and economic collapse that began in the United States in 2008 and spread to the rest of the world continues to burden the global economy. David Kotz, who was one of the few academic economists to predict it, argues that the ongoing economic crisis is not simply the aftermath of financial panic and an unusually severe recession but instead is a structural crisis of neoliberal, or free-market, capitalism. Consequently, continuing stagnation cannot be resolved by policy measures alone. It requires major institutional restructuring.

Kotz analyzes the reasons for the rise of free-market ideas, policies, and institutions beginning around 1980. He shows how the neoliberal capitalism that resulted was able to produce a series of long although tepid economic expansions, punctuated by relatively brief recessions, as well as a low rate of inflation. This created the impression of a “Great Moderation.” However, the very same factors that promoted long expansions and low inflation—growing inequality, an increasingly risk-seeking financial sector, and a series of large asset bubbles—were not only objectionable in themselves but also put the economy on an unsustainable trajectory. Kotz interprets the current push for austerity as an attempt to deepen and preserve neoliberal capitalism. However, both economic theory and history suggest that neither austerity measures nor other policy adjustments can bring another period of stable economic expansion. Kotz considers several possible directions of economic restructuring, concluding that significant economic change is likely in the years ahead.

The financial and economic collapse that began in the United States in 2008 and spread to the rest of the world continues to burden the global economy. David Kotz, who was one of the few academic economists to predict it, argues that the ongoing economic crisis is not simply the aftermath of financial panic and an unusually severe recession but instead is a structural crisis of neoliberal, or free-market, capitalism. Consequently, continuing stagnation cannot be resolved by policy measures alone. It requires major institutional restructuring.

“Kotz’s book will reward careful study by everyone interested in the question of
stages in the history of capitalism.”
—Edwin Dickens, Science & Society

“Whereas [others] suggest that the downfall of the postwar system in Europe and the United States is the result of the triumph of ideas, Kotz argues persuasively that it is actually the result of the exercise of power by those who benefit from the capitalist economic organization of society. The analysis and evidence he brings to bear in support of the role of power exercised by business and political leaders is a most valuable aspect of this book—one among many important contributions to our knowledge that makes it worthwhile.”
—Michael Meeropol, Challenge

A bold history of the rise of central banks, showing how institutions designed to steady the ship of global finance have instead become as destabilizing as they are dominant.

While central banks have gained remarkable influence over the past fifty years, promising more stability, global finance has gone from crisis to crisis. How do we explain this development? Drawing on original sources ignored in previous research, The Rise of Central Banks offers a groundbreaking account of the origins and consequences of central banks’ increasing clout over economic policy.

Many commentators argue that ideas drove change, indicating a shift in the 1970s from Keynesianism to monetarism, concerned with controlling inflation. Others point to the stagflation crises, which put capitalists and workers at loggerheads. Capitalists won, the story goes, then pushed deregulation and disinflation by redistributing power from elected governments to markets and central banks. Both approaches are helpful, but they share a weakness. Abstracting from the evolving practices of central banking, they provide inaccurate accounts of recent policy changes and fail to explain how we arrived at the current era of easy money and excessive finance.

By comparing developments in the United States, the United Kingdom, Germany, and Switzerland, Leon Wansleben finds that central bankers’ own policy innovations were an important ingredient of change. These innovations allowed central bankers to use privileged relationships with expanding financial markets to govern the economy. But by relying on markets, central banks fostered excessive credit growth and cultivated an unsustainable version of capitalism. Through extensive archival work and numerous interviews, Wansleben sheds new light on the agency of bureaucrats and calls upon society and elected leaders to direct these actors’ efforts to more progressive goals.

The national trade union is the dominant institution in the American labor movement. In this book the author analyzes its emergence and development in the latter half of the nineteenth and early part of the twentieth centuries. It was during this period that the labor union as a nationwide organization achieved dominance over other labor institutions.

The author discusses first the historical factors affecting trade union development. The body of the book covers the various stages in the evolution of union membership, organization, and government. An integral part of these chapters is a comparison of the national union movement in America and in Great Britain. The book concludes with a presentation of the interrelationships of the unions, and with a discussion of their relations with employers.

The Rise of the United Association is a study of the national union of plumbers, steam fitters, sprinkler fitters, and other pipe trades—the organization known today as the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada.

The study covers 40 crucial years in the history of national unionism of the pipe trades. In the beginning of the period (in the early 1880s) local unions of plumbers, gas fitters, and steam fitters were making first attempts to form a national organization of their crafts; forty years later, the United Association (UA) was unchallenged in its position as the national union of the pipe trades, and constituted one of the strongest organizations in contemporary building trades and in the AFL.

The Rise of the United Association concerns itself primarily with the description and analysis of the development and policies of the national union rather than with the history of local organizations of plumbers and steam fitters. In particular, the study deals with the factors that led to the rise of the first national organization of the pipe trades and then to the founding of the UA; with the complex process of internal reform that transformed the UA—originally a loose federation of locals—into a modern national union; and with the policies and tactics that eventually brought within the fold of the national organization all the pipe trades employed in building and other industries—plumbers, steam fitters, gas fitters, sprinkler fitters, and others.

During the course of the forty years of unionism described in this volume the leaders and members of the national organizations of the pipe trades were confronted with many crucial and difficult issues—the relation of their organization to the Knights of Labor, the development of a viable system of union government and finances, the regulation of apprenticeship in plumbing and steam fitting, the problem of establishing jurisdictional lines among the members of a multi-craft union. The description and analysis of union policies toward these and other issues provide major insights into the process of growth of an important labor organization and, indeed, into the development of national unionism in America.

Whose life is worth how much? To some people it seems immoral even to ask, but to others—to the worker, say, who is offered a dangerous but lucrative job—it is a practical question. Should government interfere with a worker's decision, a personal negotiation with destiny? If so, when and how?

Risk by Choice presents a comprehensive, nontechnical analysis of these questions and of government risk regulation policies in general. W. Kip Viscusi shows that the goal of a risk-free workplace is a chimera, leading to expensive regulatory programs that do little to lessen health and safety risks. He argues that when workers are aware of the hazards they face, market forces operate to promote efficient levels of risk. Government should intervene only when these forces fail to work—principally when workers do not understand the risks—and then should design policies that complement market forces rather than supplant them. Based in part on the author's experience as a member of the White House group that reviewed government regulations in many areas, this book offers the most extensive discussion available of the economic foundations of risk regulation, as well as new information on OSHA and the White House regulatory oversight process.

An essential guide to the role of microeconomic incentives, macro policies, and technological change in enhancing agriculture resilience.

Climate change and the recent COVID-19 pandemic have exposed the vulnerability of global agricultural supply and value chains. There is a growing awareness of the importance of interactions within and between these supply chains for understanding the performance of agricultural markets. This book presents a collection of research studies that develop conceptual models and empirical analyses of risk resilience and vulnerability in supply chains. The chapters emphasize the roles played by microeconomic incentives, macroeconomic policies, and technological change in contributing to supply chain performance. The studies range widely, considering for example how agent-based modeling and remote sensing data can be used to assess the impact of shocks, and how recent shocks such as the COVID-19 pandemic and the African Swine fever in China affected agricultural labor markets, the supply chain for meat products, and the food retailing sector. A recurring theme is the transformation of agricultural supply chains and the volatility of food systems in response to microeconomic shocks. The chapters not only present new findings but also point to important directions for future research.

A new history of Rotary International shows how the organization reinforced capitalist values and cultural practices at home and tried to remake the world in the idealized image of Main Street America.

Rotary International was born in Chicago in 1905. By the time World War II was over, the organization had made good on its promise to “girdle the globe.” Rotary International and the Selling of American Capitalism explores the meteoric rise of a local service club that brought missionary zeal to the spread of American-style economics and civic ideals.

Brendan Goff traces Rotary’s ideological roots to the business progressivism and cultural internationalism of the United States in the early twentieth century. The key idea was that community service was intrinsic to a capitalist way of life. The tone of “service above self” was often religious, but, as Rotary looked abroad, it embraced Woodrow Wilson’s secular message of collective security and international cooperation: civic internationalism was the businessman’s version of the Christian imperial civilizing mission, performed outside the state apparatus. The target of this mission was both domestic and global. The Rotarian, the organization’s publication, encouraged Americans to see the world as friendly to Main Street values, and Rotary worked with US corporations to export those values. Case studies of Rotary activities in Tokyo and Havana show the group paving the way for encroachments of US power—economic, political, and cultural—during the interwar years.

Rotary’s evangelism on behalf of market-friendly philanthropy and volunteerism reflected a genuine belief in peacemaking through the world’s “parliament of businessmen.” But, as Goff makes clear, Rotary also reinforced American power and interests, demonstrating the tension at the core of US-led internationalism.

Small-scale industries in rural areas in China are today an essential element of regional development programs. This monograph analyzes two main development strategies. One involves technology choices in a number of industrial sectors, most of which were initiated during the Great Leap Forward in the late fifties. The scaling down of modern large-scale technology through a product or quality choice, combined with changes in the manufacturing processes, is discussed at some length for nitrogen chemical fertilizer and cement.

The other approach is the integrated rural development strategy where a number of activities are integrated within or closely related to the commune system. This strategy includes industry as only one component of many instruments where improved public health, education, and improved agricultural technology contribute to achieving such policy objectives as increased employment and productivity.