Showing posts with label economic history. Show all posts
Showing posts with label economic history. Show all posts

Liberalism: A Counter-History Review

Liberalism: A Counter-History
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Liberalism: A Counter-History ReviewDomenico Losurdo's "Liberalism: A Counter-History" is a brilliant and engaging exposé of the real history of liberalism as an ideology, in contradistinction to the hagiographical and justificatory self-descriptions that liberals usually give to it. Almost all systematic histories of liberalism and liberal thought have been written by liberals or its sympathizers, and therefore Losurdo's critical narrative is a welcome antidote to this in every sense Whiggish approach. Losurdo proceeds largely chronologically, but there is a clear thematic structure to the book. Using the writings of impeccably liberal sources and many of the most famous founders of liberal thought, from Burke and Locke to Jefferson and De Tocqueville, he shows how liberalism's self-perception and self-presentation as the politics of freedom was undermined time and again by its reliance on the suppression of 'inferiors'. In order to realize the freedom of the liberals, black slaves, women, the working class, and so forth all had to give way; the freedom of the liberal classes was always founded on the exploitation of others. Only when the gentry and the merchant classes were freed of the need to do manual labor and were guaranteed their position as rulers of society could they defend the liberty liberalism promised against the absolute and arbitrary power of monarchs, clergy, and other traditional opponents. In fact, as Losurdo shows by analyzing the writings of US Vice President and ideologue of the Confederacy John C. Calhoun, the stronger the oppression by the liberal class of their 'inferiors', the more they saw themselves as the ultimate defenders of human liberty and the more jealously they guarded their privileges against the dangers of oppressive government. In this sense, liberalism appears more than anything as the ideology of the middle layer, precisely as it was in historical reality: its purpose is to shield from the powers above it, and to keep down the people below it.
Of course, Losurdo is well aware that liberalism took on various forms, and he carefully if not always very explicitly shows the different strands of liberal ideology throughout time. He essentially identifies three main currents in liberal thought before 1848: a conservative strand, represented by the likes of Burke and Locke, which intended to maintain the traditional structure of society but opposed the absolutism of the monarchy on behalf of the merchant class, and which had no sympathy even for bourgeois revolution along the lines of the American and the French. The second strand was the 'moderate' one, which perhaps is better called the reforming one, represented by many abolitionist thinkers as well as people like Adam Smith, Benjamin Constant and Immanuel Kant. This group sought to abolish the feudal privileges previously inhering in society and wishes to extend the liberal conception of freedom to all. However, it was consistently unable to rhyme its desire for the extension of liberty in any meaningful sense to humanity without being confronted with the problem of inequality of property, most completely expressed in the oppression of colonial peoples, the working classes in the metropole, and servants. It could not resolve this problem without breaking the boundaries of liberal thought and turning against the class it represented, and this the liberal reformers, even J.S. Mill, were unwilling to do. Each time they came up against this barrier, they fell back and retreated to the safer terrain of the conservative position - as exemplified by Constant's opposition to abolishing the property requirement for suffrage, Mill's enthusiasm for colonialism, and so forth. The racism and hypocrisy required of the reformers to maintain their position in society while preaching the gospel of freedom was not, as Losurdo shows, much different to that of the 'liberal' defenders of slavery and the Confederacy in kind; perhaps only in degree.
The third trend, a very small one, is the trend of what Losurdo calls the radicals. These were the ones that did seek to make such a break with established society and having recognized the limitations of liberal thought as a social phenomenon were willing to criticize the order of society as such, not just call for liberty within it. Before 1848, these could not easily be called socialists, and instead we find them in the ranks of radical Enlightenment thinkers such as Denis Diderot and Thomas Paine. But Losurdo traces the development of socialism as a competitor of liberalism to its origins in this wing of liberalism, what used to be called 'Bourgeois Radicalism', and he is probably correct in doing so. Only this group was willing to question the received order of society fundamentally, not just from the interest of the middle class against the aristocracy and monarchical power. Only this group was willing to re-imagine society afresh and to criticize oppression wherever they saw it. But even this group did not yet reach the understanding of socialism: they did not see oppression in many cases where it existed, not just the oppression of other races and of women, but also the genocidal policies implemented in colonization and settlerism in the name of the spread of freedom and civilisation. Challenging and uprooting the causes of these phenomena was to be the task of socialism, as was the development of a historical understanding which in the first place allows ideologies such as liberalism to be traced to their political-economic interests and vantage point within a given society. But without liberalism paving the way, this could not have been done.
It is important therefore to keep in mind that this excellent work is first and foremost a work in the history of ideas, not a political critique. It is precisely as the title says a counter-history: a real history of liberalism and its great thinkers and the way in which liberalism has always relied on the exploitation and exclusion of groups outside its great realm of liberty to prosper. Importantly, it also does away with the mythology of liberalism as a self-repairing phenomenon. Most current-day liberal philosophers would gladly admit to the errors of the past, but these are always reinterpreted as being inherently part of liberalism's supposed amazing ability to overcome its own flaws and move forward; ironically, an almost dialectical self-analysis. But Domenico Losurdo tells the story more realistically: for most of the great liberal thinkers, the exclusionary aspects of their thought were not just flaws or personal prejudices, but were in fact inherent and essential parts of their worldview, and they knew full well that such exclusion was absolutely necessary to maintain the order that liberalism was invented to defend in the first place. The racist and genocidal aspects of liberalism are no mere mistake or an idiosyncrasy of a particular time and place, as a sort of liberal counterpart to the Moscow Trials. They were 'working as intended', and that is precisely what socialism originated to critique. As Losurdo reminds us, in a time when liberalism has once again become the ruling ideology and looks on its past with increasingly warm feelings (viz. Niall Ferguson), that critique is more needed than ever.Liberalism: A Counter-History Overview

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Secrets of the Temple: How the Federal Reserve Runs the Country Review

Secrets of the Temple: How the Federal Reserve Runs the Country
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Secrets of the Temple: How the Federal Reserve Runs the Country ReviewOne might think of William Greider's "Secrets of the Temple: How the Federal Reserve Runs the Country" as "Central Banking for Poets." If you've ever scratched your head in wonder when reading how Alan Greenspan and the Fed have "lowered interest rates" or are "easing monetary policy," this book will be extremely enlightening and well worth the time it will take you to plow through all 700 plus pages. If (like me) you majored in economics, you'll be surprised how much better Greider is in explaining arcane economic theory than your college professors (and you'll probably learn -- or re-learn -- quite a bit in the process).
The focal point of the book is the celebrated and controversial tenure of Federal Reserve Chairman Paul Volker (1979-1987), but the mechanics of central banking so clearly and concisely explained are just as much applicable today as in 1980 - or 1950 for that matter.
Greider divides the book into three more-or-less equal thirds. The first covers the inflationary surge of the 1970s, Carter's tenuous decision to appoint Volker, and Volker's radical move of abandoning the control of interest rates in favor of controlling the nation's money supply. (In other words, a shift from the Keynesian orthodoxy dominant in the post-War period in favor of a monetarist approach more in line with the theories of the iconoclastic economist Milton Friedman.) The second, and most informative third provides an historical overview of central banking and its development in the United States. For those solely interested in a better understanding of central banking and the US Federal Reserve in particular, this book will be worth your while even if you only read this middle section. The final third deals with Volker's punishing monetary policy during the early 1980s, as he attempted to destroy lingering anticipation of inflation and the incredibly simulative effects of the Reagan era federal deficits and tax cuts.
Greider is highly critical of Volker's performance as Fed chairman. In short, he argues that far from being the independent and benevolent Shepard of the economy it often claims to be, the Fed, in practice, is beholden to its most powerful constituency: the major money-center financial institutions (i.e. Citibank, Bank of America, etc.). Traditional central bankers view combating inflation as their primary professional objective, which tends to favor creditors at the expense of debtors. Grieder suggests that in waging war on inflation the Fed in effect was waging war on the millions of ordinary Americans struggling to make end meets and keep their heads above water.
Whether you agree with his conclusions or not, Greider's "Secrets of the Temple" is exhaustively researched, expertly written, and extremely enlightening.Secrets of the Temple: How the Federal Reserve Runs the Country Overview

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Empire of Wealth: The Epic History of American Economic Power (P.S.) Review

Empire of Wealth: The Epic History of American Economic Power (P.S.)
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Empire of Wealth: The Epic History of American Economic Power (P.S.) ReviewForests have been cleared for all the books that have been written on American History. While a few stand out from the pack, it is harder to find one that is fresh, interesting, and informative. "An Empire of Wealth" is all of those things and I strongly recommend it to you. Instead of being a military, political, or diplomatic history, John Steel Gordon has written an economic biography of our country. Do not mistake this approach for a dry treatise on economics. Far from it, this book is full of struggle, wild success, bitter failure, dislocation from wrenching changes in the economy due to the rise of new technologies, and marshalling resources for war.
He begins with the resource rich, but hostile wilderness that the early explorers found. The British made the first permanent settlement at Jamestown in what is now Virginia. The settlers had come for gold, found mica that they mistook for gold ore, and only 38 of the 105 survived the first winter. They kept coming from England and they kept struggling until they began to grow and export tobacco. Mr. Gordon then takes us on a fast paced, and amazing journey through the nation's founding, the movement west, our major wars, depressions, and the rise (and fall) of technologies such as steam, the railroads, machine supported agriculture, banking, and international trade. He ends the book with the horrible events we experienced on September 11, 2001.
Not only is this a fun read for anyone interested in American History, it would be a fine addition to the history readings for high school or college students. I especially like the author's honesty about the good and the bad in our history without making us the bad guys or the source of all pain and suffering on the planet. The reader comes away with a richer understanding of our history and feels good about our place in the world.
The book has a particularly nice bibliography in addition to the chapter notes. The readings offered in the bibliography would enrich anyone and I also urge you to look at them and read as many as you can. There is also an index to help you find certain topics. (I am a big fan of indexes and cannot understand any modern book without one - given how easily computers can create them and allow the editor to work them into something useful. Yet, we still get books without indexes because people think they will be more popular. What I want is useful!)
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Traders, Guns and Money: Knowns and unknowns in the dazzling world of derivatives Revised edition (Financial Times Series) Review

Traders, Guns and Money: Knowns and unknowns in the dazzling world of derivatives Revised edition (Financial Times Series)
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Traders, Guns and Money: Knowns and unknowns in the dazzling world of derivatives Revised edition (Financial Times Series) ReviewThis is not another journalist musing on the financial world. This is not an academic explanation of how financial instruments work. It's something else entirely -- a rare inside glimpse into the world of derivatives by a literate professional who's been a handshake away (or closer) from the major events in the market. Das leavens a series of technical discussions about particular strategies with more entertaining glimpses into the culture the drives the deals. Although I have bones to pick with the book's episodic structure, I can't think of a better way to get a crash course in how the capital markets really work.Traders, Guns and Money: Knowns and unknowns in the dazzling world of derivatives Revised edition (Financial Times Series) Overview

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Against the Gods: The Remarkable Story of Risk Review

Against the Gods: The Remarkable Story of Risk
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Against the Gods: The Remarkable Story of Risk ReviewAgainst the Gods is an outstanding book about the evolution of risk and man's attempt to understand it. Bernstein begins with ancient times and traces the history of numbers and probability leading eventually to today's seemingly complex financial world of portfolio theory, derivatives, and risk management techniques. Readers will learn about revolutionary thinkers including John von Neumann (inventor of game theory), Isaac Newton, Harry Markowitz (grandfather of portfolio theory), and the late Fischer Black (Black Scholes option formula) among others. Readers will also find enlightening stories about game theory, fibonacci numbers, chaos theory, the bell curve, regression to the mean, and more. Yet despite all the intelligence, computer power, and sophisticated techniques, Bernstein presents us with the growing body of evidence discovered by researchers including the late Amos Tversky and others that "reveals repeated patterns of irrationality, inconsistency, and incompetence in the ways human beings arrive at decisions and choices when faced with uncertainty." Against the Gods was chosen as one of Business Week's top 10 books of the year for 1996.Against the Gods: The Remarkable Story of Risk Overview

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