by Jeffrey G. Madrick (Get the Book)The very fact that so few economists saw the 2008 economic collapse coming indicates how out of touch they were (and are) with economic realities. Enamored with the idea that capitalism is self-correcting, they failed to heed ample warnings of severe imbalances and risky behavior caused by lack of regulation of the financial markets. Financial journalist Madrick draws on the works of several well-regarded economists, including John Maynard Keynes and Milton Friedman, as well as philosopher-economist John Stuart Mills and others to examine the shortcomings of contemporary economics. Madrick offers an overview of how economic thinking has evolved from Adam Smith's invisible hand concept, taking aim at seven major ideas that have driven economists in the past 30 years and led to enormous harm. He explores the contradictions in economic theories as economists square off over philosophical beliefs about the proper role of government in the economy, the relative merits of deficits, and government economic stimulus. Debunking many of the ideas of orthodox economics, he laments how little consideration economists give to social justice and human rights or even history. Madrick argues strongly that government support for the nation's infrastructure is as important to the economy as private capital investment. This is a highly accessible look at the dismal science and why it's important to understand the philosophy behind the science of economics. --Booklist
