Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Wednesday, December 07, 2022

Books That Matter 2022


 Lots of books are published each year, and many of them contribute in some way: they inform, remember, correct the record, advance a new idea, edify, inspire and/or entertain.  But there are a smaller number of books that matter.

Though what matters can mean different things.  Some books matter because of their consequences over time.  Novels (like plays, movies and songs) can become beloved, or in the overused term, "iconic" or even "classic." Typically they speak to different people in different ways, saying different things to each.  Yet they remain memorable for many, and eventually become cultural touchstones that nearly everyone knows at least a little.  

However, identifying such books is best accomplished years afterwards.  Less time needs to pass perhaps to see a novel's influence in the world.  For example, Kim Stanley Robinson's The Ministry of the Future, published almost two years ago,  has clearly become a book that matters.  Not only is it the author's best-selling novel but it has entered into, and in some ways focused, discussions on how to address the climate crisis future, not only in the U.S. but perhaps even more strongly in Europe and internationally.  Richard Powers' two most recent novels, The Overstory and Bewilderment, have also exerted strong responses and focused emotions, inquiry and discussion on a range of related topics: not just forest issues, but questions of what constitutes life and intelligence, and the relationships of humans to the rest of life--what is increasingly called the "more than human world."   


Nonfiction books can perhaps be more easily identified more quickly as books that matter.  Published nearly a decade ago now, Thomas Picketty's Capital in the Twenty-First Century is clearly a book that matters.  Applying contemporary economic and historical analysis to very basic questions, Picketty both inspired and coalesced important thinking about basic changes in economic structures needed to make a stable and better future.  Its analysis of the failures of today's economic order and prevailing conservative philosophy, particularly showing the dangers of the huge gaps between the few at the top and everyone else, has become influential even to approaches less radical than Picketty might favor, such as a simple return to the Keynesian economics that prevailed in the U.S. from FDR until Reagan.  That analysis which shows that prosperity is attained by supporting the middle class and public sector investment is becoming U.S. policy again under the Biden administration, in what journalist Michael Tomasky is calling Middle-Out Economics, the title of his new book: perhaps a candidate for a book that matters. (In the meantime, this Politico piece and interview is a good summary.)

But books can matter before their influence is measured simply by being crucial contributions on crucial topics. They are groundbreaking in important ways, though not necessarily unique.  Their importance depends as well on how riveting they are to read.  I have several candidates for books that matter on this basis, published in the past year or so.  It's not an exhaustive list; perhaps the minimum.  The order in which I present them does not imply rank.  What links them is that they present in a generous if not full way a dramatically new synthesis that tells us something startling about our world that upends conventional wisdom and offers a new framework for perceiving and acting in the world.  In that sense, they bring the news.

The Dawn of Everything: A New History of Humanity

by David Graeber and David Wengrow


Published towards the end of last year, this book is already influencing newer work.  Its scope is enormous: nothing less than the human story.  The linear story of development (or evolution of society) is a comfortable one for many reasons.  It simplifies textbook categories, and it leads logically and inevitably to contemporary "advanced" societies, the apex of it all: from caveman to capitalism.  Who loves this story?  The same type folks who extracted "Social Darwinism" from the complexities of Darwinian evolution.  Robber barons like John D. Rockerfeller and Andrew Carnegie saw that it was good, and gave it their monied blessings.

According to the two Davids, both archaeologists, the story is wrong, right from the beginning. Modern humans weren't the sole apex of evolution--other humanoids had real societies, too, with all the elements of intelligence and expression.  We carry some of their genes. 

Society did not develop or even change from hunter-gatherer to agricultural to urban.  All these forms coexisted and intermingled, and there were many hybrids.  There were urban societies without kings or rulers, and tyrannical hunter-gatherers.  The Davids may be a little judgey in their descriptions of the varieties of Native (North and South) American societies, but they make their point--they were not simple or primitive or identical; they were often sophisticated, complex, various and sometimes large.  

This book emphasized an historical point that has since been taken up by others: that the form of democracy that governed the Six Nations Confederacy (the Haudenosaunee) that lasted longer than our democracy has so far, was patiently explained to Benjamin Franklin and others by some of its leaders, and informed the formation of the non-Native American democracy.  Too bad it didn't also adopt the Prime Directive of the  Haudenosaunee: in all decisions take into account the seventh generation to come.

This book of 692 pages is replete with examples, written with verve and wit, so it can read like a wonder book.  We don't really need Marvel or the other purveyors of outsized fantasies:  it's there in the histories that have either only recently discovered or studied, or conveniently ignored because they complicate or contradict the main story--the one that has gone a long way towards the fix we're in, on the brink of destroying it all.

An Immense World: How Animal Senses Reveal the Hidden Realms Around Us

by Ed Yong 


In Richard Powers’ novel The Overstory, the character that most readers noted and remembered is a woman scientist who discovers that trees in a forest communicate with each other, and help each other chemically to ward off disease.  She is ridiculed by scandalized scientists and forced out of academia until her research is vindicated, and she becomes a kind of folk hero.

 This character is based on a real life researcher, Suzanne Simard, whose book Finding the Mother Tree subsequently became popular.  But even more popular was a book on the same theme published a few years earlier by forester Peter Wohlleben, with the more arresting title The Hidden Life of Trees: What They Feel, How They Communicate.

 That book’s success, expanding on revelations about the complex life of the forest, led to a series of similar books by Wohlleben and many others, with titles often beginning with “The Hidden Life of” or “The Secret Life of” various animals, plants and other natural phenomena, including ice.  These books reflected new research but also observations that had gone unnoticed or derided because they contradicted established views on the natural world as comprised of simple if sometimes mysterious living objects, of interest mostly as exploitable for human ends.

 All of this helped prepare readers for the June 2022 publication of An Immense World by the much praised science journalist Ed Yong. It turns out that everything has a life hidden to humans, partly because our current preconceptions block awareness, but also because other lifeforms experience the world in vastly different ways.

 The key concept here is umwelt, named by early 20th century zoologist Jakob von Uexkull.  It refers to the sensory world of animals, determined by what senses they have and what they can do.  As Yong demonstrates through scientists he visits, these vary considerably.  Some creatures taste with their feet, others hear ultrasound or see into the ultraviolet. They may sense electromagnetic waves.

   Senses that we share with other animals are used in different ways, and the balance among them can be radically different.  Dogs smell and hear better than they see—so their world is one of aroma trails.  Even their color vision is different, and one of the more startling illustrations in this book compares the colors in a typical room that we see, and how dogs see them.

Though sometimes based on dismissed and forgotten insights, most of the research is new, as scientists use new technologies to dispel old assumptions.  That birds can’t smell is one of them, but there are many more.  Some of these discoveries are astonishing:  for instance, the vocalizations and communication that goes on out of human hearing range.  We can detect only a fraction of whales’ songs, and it turns out that mice sing to each other.  At some points this book starts to sound like Douglas Adams’ humorous takes in The Hitchhiker’s Guide to the Galaxy (that mice actually run experiments on humans, that dolphins can escape human catastrophe) may have more substance than expected.

 Apart from the wondrous details, there are larger points here.  Humans assumed a lot about other life based on their own sensorium, but we’ve missed quite a lot.  “Our Umwelt is still limited; it just doesn’t feel that way.  To us, it feels all-encompassing.  It is all that we know, and so we easily mistake it for all there is to know.  This is an illusion, and one that every animal shares.”

 But science and other forms of observation at the service of human imagination can help us see not only some of the ways other lifeforms live and communicate, but how our own activities disrupt their lives.  Light pollution wreaks havoc on various birds and other animals; noise pollution in the oceans endangers whales and other sea creatures.  

Despite the book's length, Yong's precise but informal voice and his flourishes of wit make it eminently readable, yet the science reporting itself is admirable. Even the footnotes are interesting reading. It helps that what the science is reporting remains continuously fascinating. 

 This research has greatly complicated human conceptions of what other lifeforms are, and expands the notions, extent and range of sentience and intelligence. It is this theme that James Bridle takes up in his book.

 Ways of Being: Animals, Plants, Machines: The Search for Planetary Intelligence

By James Bridle 

Bridle writes and thinks chiefly about technologies, and his disquiet about the direction and limitations of artificial intelligence sent him to explore other kinds of intelligences in the natural world.

 Again, the concept of Umwelt is evoked. Bridle also refers to both Richard Powers’ The Overstory and Kim Stanley Robinson’s The Ministry for the Future as starting points for his own explorations.  He ranges far and wide, from our humanoid ancestors to the intelligence of slime mold, and applies his observations to the new machines.  “The idea of forming new relationships with non-human intelligence is the central theme of this book,” he writes.  “It emanates from a wider and deeper dawning: the increasingly evident and pressing reality of our utter entanglement with the more-than-human world.”

 Bridle’s cogent and provocative musings apply not only to the possible futures of machine intelligence but, as Yong’s book does, to the endangered life of this planet and the necessity to actively preserve it.  As we discover and admit the extent of intelligent life and its beautiful complexity, we are close to destroying it.

 The singular and expressive organization of information and the inspired insights more than compensate for some slackness and an editorial lapse or two. Bridle's ideas and their expression in this book merit serious attention.

This recent run of books on non-human life, culminating so far in Yong and Bridle, should end any credibility given to the traditional notion of animals as natural automatons, important only as they are useful to humans, with no feelings to consider or intelligence to respect and learn from.  Gaia expanded the definition of life, and now we grapple with kinds of intelligence not only in familiar animals but plants, microbes and other life. We'd better start learning.

 One of the ideas that Bridle interrogates is the notion promoted by digital industries and other enthusiasts that intelligence is primarily based on calculation.  That is a theme in the latest novel by Dave Eggers.

 The Every: Or At Last A Sense of Order, Or The Final Days of Free Will, or Limitless Choice is Killing The World

A novel by Dave Eggers 

The Hollywood pitch for this novel might be Alice in Wonderland meets Nineteen Eighty-Four, or perhaps Brave New World would be a closer match to its onrushing dystopia.

 In this stand-alone sequel to Eggers’ The Circle, the Facebook-like corporation has merged with Amazon (referred to here as the Jungle) to form a monopolistic continuum, not only of business, not only of culture, but of shared reality.  Welcome to The Every.

 Delaney is a young woman intent on destroying The Every from the inside.  She is intelligent, intuitive, creative and acutely observant, but the plot hinges on her also being repeatedly naïve about the outcome of her efforts, as she proposes a series of outrageous changes that turn out to be big hits with The Every users, which seems to include Everyone.

 Eggers is not shy about stating his theme early in the novel: “the war on subjectivity.”  Everything is objectified to decision by calculation. (This includes the maximum number of allowable pages in a readable novel, which is 577—as it happens, the exact length of this book.) Ironically this also results in the disappearance of actual objects and authentic life, in favor of digital imagery and ideological judgments.  The result is a society caught in self-referential stasis, that punishes difference. 

 The novel does not fall easily into political categories. It exposes corporate conformism, but also its effect of cancel culture. The reasons (or excuses) given for much of the social pressure to conform are to save the environment and promote social justice.

 Delaney is a former forest ranger, so it may have seemed natural to her to organize an outing of The Every employees to visit Pacific Coast seals, but it was a disaster from start to finish, especially when they were confronted with the realities of these animals and their lives.  This incident is outrageously exaggerated and yet totally believable, and ultimately dystopic, especially given what these previous books tell us.

 It’s also funny, as is the novel generally, in a Dr. Strangelove sort of way. It has some characteristics of a satire of a monomanical corporate culture becoming a monoculture at large. Delaney’s best friend and fellow skeptic is the first to succumb to The Every’s embrace, supplying a horror movie vibe (think Invasion of the Body Snatchers.)  Delaney’s own fate involves a confrontation with the head of The Every, who was the naïve young woman protagonist of The Circle.

 There are many other related issues raised in the novel, in an entertaining narrative context that feels real right now.  The story is in development for a TV series, but right now this is a book that matters.

These four books matter because they give us crucial new information that creates a new context of how we see the world, our society and ourselves.  Right now there is no more important context that the relationship of humanity to the rest of life, and secondarily to the digital life humans are creating (for if we don't solve the survival problems associated with the first, the second won't much matter.)  They are robust enough to generate further discussion, and they cry out for action. 

Sunday, September 28, 2014

In 100 Years
Leading Economists Predict the Future
Ignacio Palacios-Huerta
MIT Press

A 1930 essay by legendary economist John Maynard Keynes made predictions for the next 100 years, mostly optimistic ones (especially considering the 1929 crash and ensuing start of the Great Depression.)  This 2014 book, following the economic smashup of 2008 and ensuing Great Recession, gets analyses and predictions from ten contemporary economists for the next 100 years.

These economists teach at the most prestigious institutions of MIT, Princeton, Yale, Harvard and the London School of Economics, with a lone rep from University Pompeu in Spain.  Among them are two winners of the Nobel Prize for Economics, and five past or present members of the Econometrics Society.

Often from the perspectives of their particular expertise, they discuss the issues of wealth and work, institutions, health, education and technology. (Notably there is little discussion of population, which used to be at the top of the list of the future's economic determiners.)

  Since the Keynes essay posited that increased total wealth will lead to more leisure and a less selfish society, some discuss ethics and human nature.  Most of the essays don't rely on jargon, so they can be read by non-economists.  On the other hand, it is painfully obvious that these are economists writing.  Their concerns, both abstract and narrow, don't adequately address the fullness of the future.  Nor are they up to the vision and writing of Keynes in his essay, "Economic Possibilities for Our Grandchildren."

People read these books of "predictions" basically to learn whether the future is brighter or darker, but there isn't much guidance here.  Most are guardedly optimistic, though mostly because they believe that present good trends will continue, change won't be overwhelming, and the challenges that scare everybody else will be somehow met.

For example, eight of the ten at least mention climate change, but only two call it the biggest threat and four minimize it as a problem.  Even the economist who devotes the most attention to it (Martin L. Weitzman of Harvard) ends up asserting a technological solution (sunshades.)  A review essay by Charles C. Mann in the September 2014 Atlantic suggests this is a pretty universal attitude among economists.  It also happens to (a) support the wealth of today's wealthy and (b) it runs counter to the findings of physical scientists and just about everybody else, who would consider this wishful thinking at best, or more pointedly, complacent ignorance and willful blindness.

Six mention income inequality as a problem, and five see it as an important one: a threat to democracy, for one thing.  But none puts these two together, climate crises and income inequality, which are likely to be happening at the same time, and will markedly affect each other.

They do attempt to at least summarize major factors and suggest how they might interact, but (with some exceptions) generally and blandly.  They mostly seem to apply conventional modes of thinking to a future that requires more imagination than this. Their discussions of technology are remarkably abstract and simplistic.  Even apocalyptic fiction, so prevalent these days, is more sophisticated in seeing how such factors might combine to affect the future.

Editor Ignacio Palacios-Huerta, who had the idea for this volume and solicited contributions, takes pains to discuss why he did so.  Apparently this is a very daring enterprise.  But the only precedent isn't 1930.  Such books were fairly common in the 1960s and 1970s, and even involved economists like Robert Theobald.  Back then (and in the more recent The Next One Hundred Years by Jonathan Weiner in 1990) such attempts acknowledged the folly of restricting the portrait of a complex future to the assumptions, observations, theoretical matrices and prejudices of a single discipline.

Perhaps I am unjust to the attempted breadth and subtlety of argument in these essays.  But all they basically seem to say is that, on balance, for their clients the future is a fairly good investment.

 That seems to be what economics is about now, and perhaps why economists by and large have a really bad record in predicting a year or even a month into the future.  Economics has possibly the least legitimacy of any claimant to actually being a science, though behavioral psychology gives it a run for its money.  

There was little or no awareness in these "predictions" that real scientists are demonstrating that humanity is using up the Earth and its resources at a much faster rate than replenishment.  Half the non-human vertebrae population of the planet that existed in 1970 was gone forty years later, in 2010, says the World Wildlife Federation study noted in the Washington Post.  Just about all of that depletion is a result of humanity.  We're destroying what sustains our lives, and ignoring that we're doing it--and we pay people handsomely for that ignorance, and we read their tedious books.  Until we realize that today and certainly for future the environment is the economy, all we'll have in one hundred years is the certainty of terminal solitude.

Tuesday, December 17, 2013

Making It

The growth of the American economy and related changes in the twentieth century were driven by achievements in manufacturing: the innovations of technology, the incomes of manufacturing workers that fueled a growing consumer economy.

But at least since the 1970s the manufacturing sector has been in decline.  Americans were buying more and more products made in Japan and China, and other countries even when made by ostensibly American companies.  For awhile it was fashionable to see this as a natural transition to a different kind of economy, based on services and consumption.  But there have always been doubts about how smart and sustainable that might be.  Those doubts, furthered by various bubbles and crashes caused by the so-called "services" of financial institutions, are urgently expressed in these three books.

America's Assembly Line by David E. Nye (MIT Press), while written in straightforward and undramatic prose, manages to say something interesting on almost every page.  The facts and stats can be deceptive--it's the selection and the focus that's so fascinating.  In one way, it's 20th century history and culture as seen from the factory floor, and as reflected in the assembly line.  (Among the many factual gems is that the term "assembly line" was popularized by FDR, and wasn't in general use until the 1940s.)

The assembly line itself of course goes further back, to methods of mechanizing production in the late 19th century.  But the 1940s gave it a mystique through the U.S. production of the weapons that won World War II (though Nye also cites German mass manufacturing--using U.S.-born innovations--as a factor both in the rise of the Nazi government and the German war effort.)

The assembly line  is most associated with the American automobile industry, and so Nye chronicles its history, including the 21st century .  The auto industry itself became the symbol of the American middle class, buying its shiny new cars with wages earned in its factories.  The threat to these jobs by automation had long been feared, and combined with other factors, the rise of robots has made those nightmares come true, with pretty much none of the remedies that scholars debated being applied.

The result is the U.S. with the highest divide between rich and the rest, while falling behind other industrial nations in production.  Yet Nye doesn't lose track of the manifest ills of the assembly line--not so long ago considered the breeding grounds for alienation and cultural stupor.  He briefly looks into alternatives and concludes that the entire American economy built around the assembly line needs to be rethought, for environmental and resource reasons as well as global economics.  But he offers only a vague revisionism.  "In 2013 it was time to reinvent both production and consumption and construct a greener assembly-line America."

Made in the USA: The Rise and Retreat of American Manufacturing  by Vaclav Smil (MIT Press) goes through the same historical period in a more generalized way, making a case for how essential manufacturing was and remains for the American economy.  He pays a bit more attention to the present and the future however, with somewhat mixed results.  But he does highlight a present danger, in noting that the U.S. has not only lost much of its manufacturing business but also its manufacturing capacity, and direct access to crucial manufactured products.

He emphasizes materials needed for the much vaunted high technology and information economy that is supposed to be America's strength.  There are parts and products no longer made in the U.S. that are essential to every computer in the country.  Smil however doesn't draw the essential conclusion, for he believes that "subcontracting and outsourcing have made the concept of the country of origin of many manufactured goods a rather meaningless notion."  But it would take only disruption of cheap transportation or a geopolitical crisis to put meaning back into it.  Similarly, he points to a future of more sophisticated and pervasive robotization without much to say about how to deal with even further loss of income and employment.

He does trace the rise and fall of Japanese industry since the 1980s, when it was poised for supremacy, and notes a chilling contribution to the decline: the inability of Japan to make political decisions.  He also notes the current rise of German manufacturing, which (he writes) is based on moderate-sized companies embedded in local communities with family ownership.

Making in America: From Innovation to Market by Suzanne Berger with the MIT Task Force on Production in the Innovation Economy (MIT Press) is a compact but wide-ranging report based on a two-year study of 250 manufacturers in Germany and China as well as the U.S..  Here manufacturing history is the backdrop and the future is the focus.  Again, the case is made that manufacturing is important to the U.S. economy, its people and the U.S. itself.  The emphasis falls on technologies and how they are used, and how companies are organized to reflect new technologies in all parts of the business. They seem to favor small, flexible, sophisticated firms over the industrial giants of the past.  Notably this book concludes that Chinese firms prosper not chiefly because of cheap labor but "because they are able to translate between advanced product designs and complex manufacturing requirements."

The last part of the book focuses on the key question of employment.  Their survey found that at least in 2012, finding employees with the requisite skill levels wasn't the problem a lot of people were saying it was.  The needed skills were at the high school graduate level.  "So there is little evidence of across-the-board skill demands that go beyond the capabilities and credentials of the population. Nor...does the demand for advanced skills seem to be rising rapidly."  But there are problems finding advanced skills for the more innovative firms, and the book goes into the need for new relationships between firms and educational institutions, since small firms can't do the kind of training large companies used to do.

New ways of pooling and organizing skills and other efforts beyond single companies to regenerate "the industrial ecosystem" are discussed.  While these have a familiar ring--public-private cooperation and a kind of social media emphasis on continuous communication--the task force has some success stories to go by.  But they also found that some managers who complained they couldn't get qualified workers were coincidentally not paying competitive wages.  The core problem of decently paid employment is not adequately addressed, nor is the Third Industrial Revolution Smil alluded to, when a new generation of more sophisticated robots goes to work, with little chance they'll take off to a higher paid job.

Friday, February 15, 2013

America The Possible: Manifesto For A New Economy
 by James Gustave Speth
 Yale University Press

 James Speth is a veteran environmentalist, and this is the latest book by an environmental veteran about how Americans can successfully address a future dominated by climate change. But his subtitle is not deceptive: he identifies the economy as the crucial element.

 The book is divided into four parts: what’s wrong now, a vision for a better future, what changes are required to get there, and how to build a political force to make those changes. The future he’s writing about is not far off— 40 or 50 years. The climate change he’s assuming is caused by the greenhouse gases that have already been spewed into the atmosphere, plus what’s added as we reduce to 40% of 1990 levels at mid-century. If greenhouse pollution is not reduced and acceleration becomes uncontrollable, or there’s unforeseen abrupt climate change, then the farther future looks more like slow motion nuclear war.

 Balancing “realism and hopefulness,” Speth is nevertheless convinced (and he is hardly alone in this) that addressing even the climate change that’s pretty definitely coming will require major political and economic transformation. He identifies precedents and experiments that show promise, but he believes that only an aroused citizenry can create the pressure necessary for fundamental change. (Once called the “ultimate insider,” Speth now returns to Washington as a protestor.)

 The good news is that changes needed to cope with the climate crisis--different economic values, restructured institutions (including corporations), etc.-- are both needed anyway for other reasons (including oil depletion), and are likely to make for a better country and a better world. Such transformations may seem impossible, but they’ve happened before.

 Speth’s prose is lean and non-academic. This book is clearly organized and well sourced. For covering so much ground it is amazingly short: under 200 pages of double-spaced print, with another 36 pages of notes. So apart from coping with possible emotional shock, it is readable and re-readable.

 On first reading, I’d identify two particular virtues. One is a specific point: Speth recognizes that an economically stronger middle class is essential to its ability to cope with what’s coming, including higher prices for just about everything.

 The general virtue is that he shows how interrelated the problems are, and how comprehensive the change must be. He doesn’t dance around this, and his knowledge is itself reassuring. The ideas he discusses aren’t usually original, but how they might work together is what’s important.  Such conundrums as a steady state economy have been studied in more detail than the last time I checked into the subject.  That's another reassurance: a lot of work in each separate area is being done.  It just takes putting them together and acting.   Some of those previous books (Down to the Wire, Eaarth, etc.) also suggested this.  But Speth is perhaps both more concrete and succinct, folding everything into a comprehensive vision.

 But that very level of analysis, as well as the extent of the tasks, can be overwhelming. There is however another new book that mixes the scales of change to provide more to hold onto, as a companion to this wise and motivating vision: Hot by Mark Hertsgaard, which I’ll review next time.

Sunday, September 25, 2011

Why Marx Was Right
by Terry Eagleton
Yale University Press

I suspect no American academic would dare write a book with this title, for fear of losing the comforts of tenure for a cell at Guantanamo. But in the UK at least, the previously influential works of Karl Marx are being reevaluated for contemporary relevance—especially now that capitalism is not proving to be such a utopian success. Prominent among the scholars doing so is Terry Eagleton, who has the additional advantage of not being an economist or political scientist. He teaches literature and cultural theory in England, and would be a delightful writer on any subject. But he’s especially penetrating and persuasive on this one.

Eagleton begins each of his ten chapters with a set of common charges against Marx, and evaluates and largely rebuts them. Did Marx advocate cruel totalitarian regimes? “Maoism and Stalinism were botched, bloody experiments which made the very idea of socialism stink in the nostrils of many of those elsewhere in the world who had most to benefit from it. But what about capitalism?” Genocides, imperialism, exploitation and slavery also accompany capitalism.

And now “the capitalist way of life is threatening to destroy the planet altogether.” So maybe it’s time to reevaluate Marx, especially since (according to Eagleton) his ideas have been intentionally and successfully distorted. (Eagleton however may not fully appreciate the dour effect of Marx’s own turgid prose and that of many followers.)

Among Eagleton’s contentions are that Marx saw socialism building on capitalism, that he was not wedded to violence as the agent of change, and the point of his emphasis on materialism was that in order to enjoy life, liberty and the pursuit of happiness, people need to have enough to eat. “Only then can we learn to play the banjo, write erotic poetry or paint the front porch.”

Eagleton writes with erudition, clear logic and a Wildean wit. Among his conclusions about Marx: “His ideal was leisure, not labour. If he paid such unflagging attention to the economic, it was in order to diminish its power over humanity. His materialism was fully compatible with deeply held moral and spiritual convictions. He lavished praise on the middle class, and saw socialism as the inheritor of its great legacies of liberty, civil rights and material prosperity. His views on Nature and the environment were for the most part startlingly in advance of his time.”

Like a lot of antiwar and antiracism agitators who were supposed to be getting our orders from Moscow back in the day, I had read very little Marx, and I still haven’t. So I can’t say this book has made me any more Marxist, but I am well on the way to becoming an Eagletonist.

Saturday, October 02, 2010


When the Lights Went Out: A History of Blackouts in America
by David E. Nye
MIT Press


We live in a world where time and space have been eliminated, where millions of people increasingly live in virtual worlds, and there’s no turning back. Right, and the real estate bubble will never burst and the stock market never goes down.

The problem with our electronic future is that it all depends on electricity, while the U.S. grid is aging and vulnerable, no new capacity is being added, and dominant energy sources are dwindling and/or terminally toxic. Still there seems to be this sense that the growth of the Internet is cost-free. However, the New Yorker quotes a high-powered engineer that the Internet probably uses twice the energy as air travel, and that use is growing faster than anything else. A few years ago conservative futurist George Gilder predicted that Internet computing would soon require as much power as the entire U.S. economy did in 2001.

David E. Nye has written a wide-ranging and very readable book that’s basically about how electricity became a foundation of modern society, as revealed especially in what happens when it goes off. There’s the social dimension (the Great Northeastern blackout of 1965 that in New York led to unexpected friendliness, and a similar blackout in 1977 that led to looting), and the technical and economic dimensions. Those who remember the Enron-rigged rolling blackouts of the 90s in CA will get more context along with a return of rising blood pressure.

But accompanying the thought-provoking entertainment, there are warnings about the current U.S. grid’s much-ignored problems of capacity and vulnerability. Perhaps surprisingly, Nye suggests that terrorism is a less of threat than complacency (because power disruptions usually get fixed before people panic.) Greater energy efficiency and decentralization, especially with green technologies, aren’t just nice goals—they’re vital if the power is going to keep flowing. The problems are less technological, he writes, than political and economic. “The problem is not a lack of means but a lack of political will.”

Blackouts remind us what we don’t have when we don’t have electricity. Nye quotes an architect that without it “there is no compression of time and space anymore,” and “one cannot hide behind a wireless phone nor dive yourself into the Internet.”

Apropos of a previous review (of another book from the academic press), I noted with some amusement that Nye felt it necessary to write, somewhat defensively, in his introduction: “Each theory is briefly introduced as the story moves between technical, social, political, and cultural history. Specialists often want theory to be highly visible, like scaffolding covering a building. I prefer to build it unobtrusively into the argument...” In other words, he’s apologizing for using such common tools as narrative and clear, standard English so this book is accessible and even enjoyable for those outside the brotherhood of Theory. The result is a book for both energy techies and the rest of us. Though a bit diffuse, its emphasis on narrative makes it a provocative pleasure.

Sunday, March 23, 2008

Predictably Irrational:
The Hidden Forces That Shape Our Decisions
By Dan Ariely
Harpercollins; 304 pages; $25.95.

Update: This review now appears also in the San Francisco Chronicle Book Review.

Call me crazy, but I’ve always thought the axiom of academic economics that says our decisions, especially buying decisions, are based on rational choice is itself irrational. Counter-examples are rife in most of world literature, movies and TV shows, as well as psychology since 1890 and the entire advertising industry, which is not notable for critiques appealing to pure reason. There’s abundant evidence, including books from Vance Packard’s 1957 The Hidden Persuaders to Douglas Rushkoff's 1999 Coercion to Martin Howard’s 2005 We Know What You Want that advertisers and retailers thrive on pushing non-rational buttons, as have con artists peddling snake oil, pyramid schemes, Florida land, phony stocks and fake charities, from antiquity to the Internet.

But apparently it takes an official Professor of Behavioral Economics at MIT like Dan Ariely to suggest that “we are really far less rational than standard economic theory assumes. Moreover, these irrational behaviors of ours are neither random nor senseless. They are systematic, and since we repeat them again and again, predictable.”

In this book, Ariely describes experiments that pertain to general conclusions (“Why we often pay too much when we pay nothing,” “why we can’t make ourselves do what we want to do,” “why options distract us from our main objective,” etc.), and then offers extrapolations of why these tendencies are important. He then offers ideas on how to get ourselves under more rational control, individually and by changing organizational or societal structures.

Some of his research I found eye-opening, particularly the experiments involving the suggestibility that words can have. In one experiment, Asian-American women took a math exam. Half were given a preliminary questionnaire with innocuous survey questions that related to gender (opinions on coed dorms, etc); the other half, questions relating to their racial heritage (family history, etc.) The women who got the race-related survey did better on the subsequent math exam than the women who got the gender-related survey, apparently confirming the stereotypes of women as bad in math, and Asian-Americans as smart in math, as suggested just by the topic of whichever survey they were given.

Another group was given a scrambled-sentence puzzle with words “priming the concept of the elderly,” such as “Florida, bingo, ancient.” Then when they were dismissed, they walked more slowly down the corridor than members of a control group. They weren’t, Ariely notes, “themselves elderly people being reminded of their frailty—they were undergraduate students at NYU.” Yet another experiment found that after being asked to list the Ten Commandment—or when they were reminded of the Honor Code they’d agreed to-- subjects were more honest.

Other topics include how we judge (and misjudge) relative value, the power of placebos, the power of price (more ailments are allegedly cured when the subject believes the medicine is expensive), and the gently subversive idea that market forces don’t always regulate the market for the best outcomes.

Most chapters frame the information in terms of the kind of decision-making processes many of us go through in choosing what or whether to buy, though usually in more simplified form than the bewildering blitz of options, questions and information we contend with these days. Since this book is meant for a wide readership, the style is pleasantly conversational and personal, though jargon is sometimes replaced by cliché.

Ariely’s conclusions sometimes make good sense to me, like bundling preventive health care procedures to combat procrastination. But some seem to be too limited in terms of what questions the research suggests, and others too broad. His general assertions—that we tend to underestimate the role of the irrational in our perceptions and decisions, and that if we have some idea of how we are irrational, we’re less helpless and can assert more conscious control—are useful principles to repeat. Even if they’re not at all new ideas, they could well be new to readers of this book.

While Ariely’s stated goal is to understand the decision-making processes behind behavior—“yours, mine and everybody else’s” he may be overreaching in the applicability of his conclusions.

“We all make the same types of mistakes over and over, because of the basic wiring of our brains,” he writes, but he presents no evidence of this causal relationship. It depends on his behavioral experiments being universal. The experiments he presents support the irrationality part of his argument, but I don’t buy the universal predictability of all their specific findings. While these experiments take place in California, New York, Massachusetts, North Carolina and so on, they rarely get off campus, and the experimental subjects (at least the ones he describes) are almost always university students.

That’s a specific demographic group that marketing psychologists study very closely, and pitch their products to in ways that don’t work with other—especially older—consumers. There are several conclusions that Ariely makes (the decisive role of image among peers when choosing food at a restaurant, or the “irrational impulse to chase worthless options” in a game, for instance) that could be quite different according to age or even income and social class. And that’s without even attempting to assess the experiment involving young men, Playboy magazines and a Saran wrap-covered laptop.

In any case the accounts of these experiments are useful as cautionary tales and examples inspiring academic as well as water cooler discussion. As for Ariely’s basic conclusion, addressed as this question—“Wouldn’t economics make a lot more sense if it were based on how people actually behave, instead of how they should behave?”—hey, aren’t those economists wild?

Monday, June 12, 2006

Applying conclusions backed up by factual findings also characterizes Profit With Honor: The New Stage of Market Capitalism by Daniel Yankelovich. Though his name might be most familiar as a pollster, he has also been involved in public policy (as chair of Public Agenda) and education (Viewpoint Learning) as well as serving on boards of corporations in various industries.

He begins with recent business scandals, and the inadequacy of new regulations and enforcement. We need “normative climate that encourages compliance with laws and regulations,” and “History shows you cannot fight bad norms solely with laws.”

But even beyond illegal activity, he argues, the so-called magic of the marketplace won’t produce ethical results to benefit society. History also shows that market economies “vary from era to era and from culture to culture. Their inherent nature is far less clear-cut than either their advocates or their opponents presuppose.”

In the second half of this relatively short book, Yankelovich describes his vision of “stewardship ethics” and how in practical terms they might work, for the benefit of society and individual businesses, and their stockholders. The vision of businesses operating from an attitude of stewardship, looking for the long-term benefit of society and the corporation, is in some ways radical, yet it is a practical way to respond to many problems of present and near-future reality that both societies and businesses will necessarily face, including the major challenges of energy and environment.

“The most creative challenge of stewardship ethics is to learn how to make profitability and society’s interest more compatible.” That’s saying a mouthful, and there will be many skeptics on all sides of these issues. But if this is the culmination of Yankelovich’s work, it could be a valuable legacy. He believes such a pervasive change in operational attitude must come from CEOs, and he’s using a lifetime of credibility to make his case. It is an act of courage, and that, along with that credibility and his career, means this book deserves a hearing. But then, just the merits of the case he builds in this book call for serious attention. Something like stewardship ethics may well be required not only for a better future, but to prevent a far worse one.

Thursday, May 12, 2005

Econ for the Future 101

'>THE GREAT UNRAVELING by Paul Krugman. W.W. Norton & Co.
'>THE END OF POVERTY by Jeffrey D. Sachs. Penguin Press.

by William S. Kowinski

It's called the dismal science because of all those gray lines of figures, but the name might stick because as a science it has been a dismal failure. Abused by ideologues and self-serving liars, puffed up beyond its accomplishments in academia, with a deserved reputation for predicting the obvious and getting even that wrong, economics has failed its function and its potential. In this, a world predicated on economic relationships. Dismal.

Here are two of the few books that do better. There is no better analyst of the economics of our time, especially those involved in political machinations at the federal and global level, than Paul Krugman of the New York Times. His ongoing analysis of the chicanery and cynical foolishness applied to the Social Security debate in Washington is only his latest invaluable contribution to truth, justice and the American way.

His columns should not be missed, and though this book is a few years old---a long time in political economics---it is still the best analysis of what's going on. The venerable Arthur Schlesinger, Jr., author of POLITICS OF HOPE, calls THE GREAT UNRAVELING "required reading for anyone concerned about the American future."

Concerning the world's future, Jeffrey Sachs in his new book offers convincing proof and a practical plan for addressing and essentially ending poverty in our time. We've known since President Kennedy said so in his Inaugural Address in 1961 that eradicating poverty is within our power. This book, which is both based on information gathered for the UN Millennium Project and is the basis for the 20 year effort inaugurated by that project this year to eliminate poverty, offers the blueprint for actually doing it. At very little cost to the wealthy nations and their citizens.

What little hope there seems to be rests with courageous individuals like Krugman who step up to the possibilities that they've been given, and to organizations like the Millennium Project that operate doggedly, under the media radar, to achieve goals that amount to justifying our claims of humanity. The future depends on them, and individuals and organizations like them in many categories of knowledge and endeavor.