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WRONG: Nine Economic Policy Disasters and What We Can Learn from Them
In recent years, the world has been rocked by major economic crises, most notably the devastating collapse of Lehman Brothers, the largest bankruptcy in American history, which triggered the breathtakingly destructive sub-prime disaster. What sparks these vast economic calamities? Why do our economic policy makers fail to protect us from such upheavals?
In Wrong , economist Richard Grossman addresses such questions, shining a light on the poor thinking behind nine of the worst economic policy mistakes of the past 200 years, missteps whose outcomes ranged from appalling to tragic. Grossman tells the story behind each misconceived economic move, explaining why the policy was adopted, how it was implemented, and its short- and long-term consequences. In each case, he shows that the main culprits were policy makers who were guided by ideology rather than economics. For instance, Wrong looks at how America's unfounded fear of a centralized monetary authority caused them to reject two central banks, condemning the nation to wave after wave of financial panics. He describes how Britain's blind commitment to free markets, rather than to assisting the starving in Ireland, led to one of the nineteenth century's worst humanitarian tragedies- the Irish famine. And he shows how Britain's reestablishment of the gold standard after World War I,
fuelled largely by a desire to recapture its pre-war dominance, helped to turn what would otherwise have been a normal recession into the Great Depression. Grossman also explores the Smoot-Hawley Tariff of 1930, Japan's lost decade of the 1990s, the American subprime crisis, and the present European sovereign debt crisis.
Economic policy should be based on cold, hard economic analysis, Grossman concludes, not on an unquestioning commitment to a particular ideology. Wrong shows what happens when this sensible advice is ignored.
In Wrong , economist Richard Grossman addresses such questions, shining a light on the poor thinking behind nine of the worst economic policy mistakes of the past 200 years, missteps whose outcomes ranged from appalling to tragic. Grossman tells the story behind each misconceived economic move, explaining why the policy was adopted, how it was implemented, and its short- and long-term consequences. In each case, he shows that the main culprits were policy makers who were guided by ideology rather than economics. For instance, Wrong looks at how America's unfounded fear of a centralized monetary authority caused them to reject two central banks, condemning the nation to wave after wave of financial panics. He describes how Britain's blind commitment to free markets, rather than to assisting the starving in Ireland, led to one of the nineteenth century's worst humanitarian tragedies- the Irish famine. And he shows how Britain's reestablishment of the gold standard after World War I,
fuelled largely by a desire to recapture its pre-war dominance, helped to turn what would otherwise have been a normal recession into the Great Depression. Grossman also explores the Smoot-Hawley Tariff of 1930, Japan's lost decade of the 1990s, the American subprime crisis, and the present European sovereign debt crisis.
Economic policy should be based on cold, hard economic analysis, Grossman concludes, not on an unquestioning commitment to a particular ideology. Wrong shows what happens when this sensible advice is ignored.
296 pages, Hardcover
First published January 1, 2013
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Displaying 1 - 8 of 8 reviews
October 21, 2015
Though interesting, I found its treatment of each subject briefer than I felt they warranted. I still learned useful things, but I wouldn't recommend the book to someone with a solid base in economic history.
May 5, 2018
An excellent analysis on severe economic policy mistakes. Less use of technical jargons, not a dry read, quite a good start for someone who wants to know economic and political history and how all these are shaped by ideologies.
However all the nine examples are picked in such a way that blame goes to right wing, conservative economic ideologies, Grossman didn't include collapse of soviet, collapse of east Germany, the nations which followed socialist ideologies i.e. Brazil, Vietnam, North Korea, Venezuela, Greece and India failed to prosper. So it is not advisable to come to conclusion after reading this book.
However all the nine examples are picked in such a way that blame goes to right wing, conservative economic ideologies, Grossman didn't include collapse of soviet, collapse of east Germany, the nations which followed socialist ideologies i.e. Brazil, Vietnam, North Korea, Venezuela, Greece and India failed to prosper. So it is not advisable to come to conclusion after reading this book.
April 3, 2019
It's not a bad book. Good basic economic history, I would say it's all the big point you would get if you took the subject as a course. Succinct and efficient in style, would recommend as an intro to economic history.
June 12, 2015
According to the author, it appears the only ideology that created the crisis's in the US are those held by Republicans. There is no way you can discuss the subprime meltdown without talking about the mismanagement of Fannie Mae, and cannot do that without bringing up Barney Frank. His belief, as well as his fellow democrats, that everyone should be able to buy a house, whether they could afford it or not, is an ideology that the author seems to ignore. Fannie Mae was one of the largest purchasers of these subprime investment instruments and was encouraged by Congressman Frank. But the author lays all the blame at the Republicans door. Although it was interesting to get some of the details on the problems that occurred outside our country, the authors political bias makes it hard to agree with his conclusion that ideology is the root of all evil.
Want to Read
November 5, 2013Perhaps useful historical perspective for all of us whose opinions may have been formed without it. Haven't read it yet so my opinions are safe for the moment.
... from the publisher ... Economic policy should be based on cold, hard economic analysis, Grossman concludes, not on an unquestioning commitment to a particular ideology. Wrong shows what happens when this sensible advice is ignored.
... from the publisher ... Economic policy should be based on cold, hard economic analysis, Grossman concludes, not on an unquestioning commitment to a particular ideology. Wrong shows what happens when this sensible advice is ignored.
October 20, 2014
It was interesting to read about policy failures throughout history that made their mark in recorded history. The common theme throughout the book is that it is good to have a personal stance on economic policies, but also that, as he proves, it is beneficial to allow for analysis & reason to triumph over ideology in times of crises or when important & lasting decisions are being made.
May 10, 2016
Good, kind of dry. It explored some massive policy failures of the last couple hundred years. It had a bit more of an academic feel than some of the other books I've read so far this year although maybe I'm just getting burnt out and jaded reading about economics and need to switch topics for a month or two.
July 12, 2014
It's Ok -- the premise of the book is novel and well presented. There were numerous errors in the text that could have been picked up by a careful copy edit.
Displaying 1 - 8 of 8 reviews