Tag Archives: Don Boudreaux

2012: The Year in Books

library strahov theological hall

I wish.

As is now tradition on this blog (2009, 2010, 2011), here are capsule reviews of all the books I read this year. The usual rules apply: only books I actually finished made the list, and I recommend them unless stated otherwise in the review. My approach is less extreme than Tyler Cowen‘s, but I still tend not to finish a book unless I feel it’s worth the time and effort; hence the mostly favorable reviews. If you see any that interest you, I hope you’ll check them out. A good book is one of life’s genuine joys, and one well worth sharing.

  1. Daron Acemoglu  and James A. Robinson – Why Nations Fail: The Origins of Power, Prosperity, and Poverty
    Why are some countries rich while others are poor? According to this book, institutions are the answer. Countries with extractive political and economic institutions are poor and despotic. Countries with more inclusive institutions prosper.
  2. Tom Bethell – Eric Hoffer: The Longshoreman Philosopher
    Hoffer was a dockworker and philosopher who wrote the massively influential The True Believer. This biography does a good job of blending Hoffer’s personal and intellectual lives, and reveals that he may have been an illegal immigrant from Germany. Which, of course, only reinforces my pro-immigration views.
  3. Peter Boettke – Living Economics: Yesterday, Today, and Tomorrow
    An insightful collection of 22 articles about teaching economics, and what economics can teach us — and what it can’t. The economist should see himself as a student of society, not its savior. Humility, not certainty.
  4. Daniel J. Boorstin – The Creators: A History of Heroes of the Imagination
    A lengthy history of the arts spanning 3,000 years, told mainly through biography. Almost all of its 70 chapters tell the life story of one or more great artist, and describes their works. Poetry, prose, painting, sculpture, architecture, theater, photography, and more all get their moments.
  5. Donald J. Boudreaux – Hypocrites & Half-Wits: A Daily Dose of Sanity from Cafe Hayek
    I sometimes give a lunch seminar to CEI’s interns about writing, and assign them to write letters to the editor. Don taught me much of what I know in that department. This excellent book, which collects 100 or so of his best letters, shows why I learned from the best. My personal favorite is the final one.
  6. Jim Bouton – Ball Four
    A baseball classic. A tell-all diary/memoir/autobiography of Bouton’s 1969 season pitching for the Seattle Pilots. It’s as funny as it is cynical.
  7. Michael Breen – Kim Jong-il: North Korea’s Dear Leader, Revised and Updated Edition
    Unimpressive, but still valuable. Breen’s use of bad pop psychology to analyze Kim Jong-il’s character wastes valuable pages, and he is an awkward prose stylist. But he has gathered a lot of valuable inside information from his years as a journalist covering North Korea, and shares it eagerly.
  8. Robert Caro – The Path to Power: The Years of Lyndon Johnson, Volume 1
    The first of four lengthy volumes published so far. The series is a study of power as much as it is of LBJ himself. Caro, while ideologically sympathetic to Johnson’s Great Society, is unafraid to paint him — accurately — as power-obsessed, manipulative, and often just plain mean.
  9. Robert Caro – Means of Ascent: The Years of Lyndon Johnson, Volume 2
    Glad I read this during an election year. The heart of the book is the story of Johnson’s 1948 Senate race against Coke Stevenson. The two men could not be more different, which alone makes it interesting. But the lengths to which Johnson went during the campaign reveal much about the politician’s mindset. Johnson stole the election all but openly; the rest is history.
  10. Kenneth Clark – Civilisation: A Personal View
    The companion book to Clark’s masterful BBC art history documentary, which I also recommend. Clark never does define “civilization,” but he shows 280 examples of it in this lavishly illustrated book.
  11. Bill Clinton – Back to Work: Why We Need Smart Government for a Strong Economy
    Quick-hit book of progressive policy ideas. Recommended for young economists learning about opportunity costs, comparative advantage, and other Econ 101 concepts. Lots of places to apply them here. I also reviewed it for RealClearBooks.
  12. Benjamin Constant – Principles of Politics Applicable to All Governments
    Published in 1815, the same year as Waterloo. Constant was a French political philosopher heavily influenced by Enlightenment ideals. But this is a world-weary work; Constant lived through the French Revolution, the Terror, and Napoleon’s wars. Above all else except for human freedom, he yearned for peace and quiet. I can get behind that.
  13. Martha Derthick and Paul J. Quick – The Politics of Deregulation
    Dry as dust, but informative. Tells the story of how a perfect storm led to airline, trucking, and telecom deregulation under Ford, Carter, and Reagan. In a bit of disciplinary squabbling, The political scientist authors repeatedly go out of their way to disparage by name economists such as Anthony Downs, Bill Niskanen, and Mancur Olson. But their Homo economicus-based criticisms reveal that they probably haven’t read them, and certainly don’t understand them.
  14. Pierre Desrochers and Hiroko Shimizu – The Locavore’s Dilemma: In Praise of the 10,000-Mile Diet
    This ad hominem-free deluge of data and arguments made me feel embarrassed for buy-local activists such as Michael Pollan. Like watching a cat play with a mouse.
  15. Peter K. Diamandis and Steven Kotler – Abundance: The Future Is Better Than You Think
    Diamandis founded the X Prize Foundation. He has excellent insights into our biological predilection towards pessimism, and gives a tour of innovations that could change the world and end poverty over the next few decades.
  16. Paul Dickson: Bill Veeck: Baseball’s Greatest Maverick
    Veeck was a baseball innovator and showman who also had a healthy sense of humor. He put the ivy in Wrigley Field, last names on players’ jerseys, set off fireworks after home runs, and once sent 3′ 7″ Eddie Gaedel to bat during a regular season game. He also played a major role in baseball’s racial integration.
  17. Brian Doherty – Ron Paul’s rEVOLution: The Man and the Movement He Inspired
    This book is more about Ron Paul supporters, warts and all, than it is about Paul himself. A fun read, if not terribly edifying. Could stand to be a little more critical.
  18. Susan Dudley and Jerry Brito – Regulation: A Primer, Second Edition
    Highly recommended. Excellent overview of the different types of regulation, their rationales, and the regulatory process. The link goes to a free PDF version.
  19. William Easterly – The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good
    The title, drawn from Kipling, refers to the West’s haughty condescension towards the Rest. Easterly draws a dichotomy between Planners — top-down, grandiose, and bureaucratic — and Searchers, who take a more bottom-up, humble, and effective approach to aid.
  20. Robert Heinlein – The Man Who Sold the Moon
    A collection of sci-fi stories and a novella. As dated as some Heinlein stories are, the better ones have a simple joie de vivre that both leavens and complements his usual anti-authoritarianism.
  21. Johann Wolfgang Von Goethe – The Sufferings of Young Werther
    A work of much passion and emotion, and little sense. Reminds me of what it was like to be 19 years old. From an aesthetic standpoint, though, it is simply beautiful.
  22. Rob Goodman and Jimmy Soni – Rome’s Last Citizen: The Life and Legacy of Cato, Mortal Enemy of Caesar
    This book weaves together three themes. The first two, tightly intertwined, are Cato’s life story and the end of the Roman Republic, in which he believed strongly enough to die for. The third is his legacy, which endured all the way from St. Augustine to Dante to Addison to Trenchard and Gordon to today’s Cato Institute.
  23. Blaine Harden – Escape from Camp 14: One Man’s Remarkable Odyssey from North Korea to Freedom in the West
    The story of Shin Dong-Hyuk, who is believed to be the only person born in a North Korean prison camp to ever escape alive. Besides describing the unimaginable hardships he endured, it tells of his new life as a human rights activist, and the difficulties he has faced adjusting to life on the outside. Shin also receives 50 percent of this book’s royalties, if you need further incentive to buy it.
  24. F.A. Hayek (Stephen Kresge and Leif Wenar, eds.) – Hayek on Hayek: An Autobiographical Dialogue
    Hayek’s easiest read. He spoke much more clearly than he wrote. Still, it’s not a good introduction. A basic prior knowledge of his major works is essential to get much out of it. A valuable read, but Hayek neophytes are better served by the relevant parts of Brian Doherty’s Radicals for Capitalism.
  25. Gene Healy – False Idol: Barack Obama and the Continuing Cult of the Presidency
    An update to 2008’s superb Cult of the Presidency, this short e-book looks at the abuses and expansion of executive power over the last four years. Obama doesn’t deserve the blame, though. The public’s unrealistic expectations for the office are what drive its constant expansion. I wrote more about the book here.
  26. Christopher Hitchens – Why Orwell Matters
    Hitchens waxes eloquent on why Orwell was a principled opponent of all kinds of totalitarianism, whether from the right or the left. He is not afraid to criticize Orwell’s regrettable prejudices (women, gays, Jews), but he paints an overall picture of a an archenemy of arbitrary power, and a master of language.
  27. Christopher Hitchens – Mortality
    Hitchens’ account of dying of esophageal cancer. Difficult to read.
  28. Mike Kim – Escaping North Korea: Defiance and Hope in the World’s Most Repressive Country
    Kim, a Korean-American, gave up a career in finance to move to the Chinese-North Korean border and help refugees. The stories he tells about the people he met and helped are harrowing, yet ennobling.
  29. Mark Kurlansky – Birdseye: The Adventures of a Curious Man
    Clarence Birdseye was the fellow who invented frozen food. He was also a colorful character. An enjoyable look at how innovation happens, and filled with random facts about food, Labrador, the physics and chemistry of freezing, and much else.
  30. Robert E. Litan and William D. Nordhaus – Reforming Federal Regulation
    Published in 1983, so some parts are dated. But it contains useful discussions of numerous reform ideas, including an entire chapter on the regulatory budget, a personal favorite. If there’s a budget for how much government can spend, there should be one for how much it can regulate, too.
  31. Steven Malanga – Shakedown: The Continuing Conspiracy Against the American Taxpayer
    A public choice-influenced book that examines rent-seeking from public sector unions, community organizers, and allied politicians at the state and local levels. The picture Malanga paints is not a pretty one for taxpayers, especially in California and New Jersey.
  32. David Maraniss – When Pride Still Mattered: A Life of Vince Lombardi
    Lombardi is something of a god in the football world. Maraniss brings him down to earth while confirming his legendary stature. Lombardi’s drive and personality never allowed him to achieve Machiavelli’s preferred balance of fear and love, though he did try.
  33. Michael L. Marlow – The Myth of Fair and Efficient Government: Why the Government You Want Is Not the One You Get
    Hayek wrote that “Nobody can be a great economist who is only an economist.” Marlow, at least in this book, is only an economist. Still, this would make a decent free-market policy primer for an undergraduate. The trouble is that Marlow’s monomaniacal focus on efficiency leaves out all the other reasons markets are preferable to their alternatives.
  34. Allan Massie – The Royal Stuarts: A History of the Family That Shaped Britain
    Follows Scotland’s royal family from its murky origins as stewards (hence Stewart, or Stuart) to earlier Scottish monarchs, to the family capturing the crown for itself, on through James VI and I’s unifying the Scottish and English crowns, Charles I’s 1649 “shortening,” the Glorious Revolution that made Parliament supreme, to the line’s extinction after Bonnie Prince Charlie’s failed plot to reclaim the crown. Good stuff.
  35. Dierdre McCloskey – Crossing: A Memoir
    Deirdre, one of my favorite economists, was once Donald. This is the story of her transition. It makes one appreciate just how hard it can be to feel comfortable in one’s own skin. As with all of her books, it is superbly written.
  36. Ludwig von Mises – Socialism: An Economic and Sociological Analysis
    Originally published in 1922, and very prescient. The prevailing thought at the time was that a planned economy would be wealthier than an unplanned market economy; Mises showed this not to be true. People thought socialism would free people; Mises showed why the total state would enslave them.
  37. David Nasaw – The Patriarch: The Remarkable Life and Turbulent Times of Joseph P. Kennedy
    The Kennedy patriarch was a remarkable man, if not always a pleasant one. Nasaw’s biography is Caro-esque in its level of detail. This is mostly for the good, though it spends entirely too much time on his ambassadorship in London and his alliance with Neville Chamberlain.
  38. Bruce Nash and Alan Zullo – The Football Hall of Shame
    Not the most intellectually stimulating book, but it is laugh-out-loud funny. The literary equivalent of a blooper film.
  39. Tom Palmer (ed.) – After the Welfare State
    A collection of essays about the welfare state and its alternatives. The historical essays about mutual aid by David Green and David Beito are especially valuable. You can download a free copy at the link.
  40. Roger Pearson – Voltaire Almighty: A Life in Pursuit of Freedom
    The author needs a remedial lesson in comma usage, but this is still a wonderful book. One can’t help laughing along with Voltaire as he crushes l’infame.
  41. Martin Redfern – The Earth: A Very Short Introduction
    Part of Oxford’s Very Short Introductions series. A densely packed geology primer written in an engaging and occasionally humorous style. Good for anyone from a high school student to an interested layman like this writer.
  42. Jean-Jacques Rousseau – Discourse on the Origin and Basis of Inequality Among Men
    Nature is good and civilization is bad, according to this early work of Rousseau’s. His later works reached the same conclusion, but fortunately with more nuance. Voltaire wrote to Rousseau about this book, “Reading your book fills one with the desire to walk on all fours.” Like Voltaire and unlike Rousseau, I would rather be man than animal.
  43. Steven Saylor – Roma: The Novel of Ancient Rome
    Historical fiction that does justice to both words. Follows the ebbs and flows of a single line of descendants over 1,000 years. Different personalities and common themes both shine through. Pre-Romulus and Remus mythical times, the Age of Kings, the entire life of the Republic, and the rise of Caesar and Augustus are all covered in vivid detail.
  44. Peter Schweizer: Throw Them All Out
    No one will be surprised by this book’s thesis: most politicians are corrupt, and it is a thoroughly bipartisan problem. Most people would be surprised by the many details that Schweizer reveals.
  45. William L. Shirer – The Rise and Fall of the Third Reich
    Long, but very good. The hardback edition I have is a two-volume set. The definitive history of Nazi Germany. A weakness is that it focuses on diplomacy, political maneuvering, and military strategy at the near-total expense of social history.
  46. Thomas Sowell – A Conflict of Visions: Ideological Origins of Political Struggles
    Very insightful. Sowell compares the constrained and unconstrained visions of the world, and shows why they tend to talk past, instead of to each other. The unconstrained vision believes in the unconstrained power of intellectuals to achieve desired social results. The constrained vision believes the world is too complicated for such plans to work, and prefers ever-evolving, bottom-up processes.
  47. George J. Stigler – The Intellectual and the Marketplace: Enlarged Edition
    Stigler, a Nobel-winning economist, was as well known for his wit and his sharp sense of humor as he was for his technical excellence. This surprisingly funny book shows that wit in full flower.
  48. John Stossel – No They Can’t: Why Government Fails – But Individuals Succeed
    I don’t care for the unsubtle title, but Stossel is one of today’s better popularizers of libertarian ideas. Not much original material here, but well-suited for people interested in classical liberal ideas but unwilling to slog through the primary sources.
  49. Sean Trende – The Lost Majority: Why the Future of Government Is Up for Grabs – and Who Will Take It
    I’m not much on the political horse race, but this was a good read. Trende persuasively argues that there are no permanent majorities, and that most pundits are pattern-seeking, hyperbolic windbags. I’ve long thought the same thing myself.
  50. Bob Uecker – Catcher in the Wry: Outrageous but True Stories of Baseball
    In true Uecker fashion, I bought this book for one cent. Better, I paid nearly 400 times that — $3.99 — for shipping. It was well worth it. Uecker’s self-deprecating brand of humor is always good for a smile.
  51. Bryan Ward-Perkins – The Fall of Rome: And the End of Civilization
    A darker counterpoint to Peter Wells’ sunnier take on post-classical Europe. Not as pessimistic as Gibbon’s Decline and Fall, but he emphasizes across-the-board declines in living standards, population, trade, literacy, architecture, and the quantity and quality of consumer goods.
  52. Peter S. Wells – Barbarians to Angels: Reconsidering the Dark Ages
    A mostly successful attempt to improve the Dark Ages’ dismal rehabilitation. Surviving texts are mostly from the declining Romans’ pessimistic perspective; hence the dominant view. Wells prefers a different historiographical perspective: archaeology. In his enthusiasm he oversells his case, but he makes an excellent point. I blogged about the book here.
  53. Roy Wenzl, Tim Potter, Jurst Laviana, and L. Kelly – Bind, Torture, Kill: The Inside Story of BTK, the Serial Killer Next Door
    Not a biography. This is the story of how Wichita detectives caught Dennis Rader, the BTK killer. It took them 31 years. Kudos to them for their patience and persistence in tracking down a particularly elusive monster.
  54. David Wessel – Red Ink: Inside the High-Stakes Politics of the Federal Budget
    Very little here in the way of original thought. But it’s a good primer for the layman on the ticking fiscal time bomb. Wessel is studiously non-partisan, a huge plus in my book. Though he does favor fiscal stimulus, which makes me question his economic acumen; broken window fallacy and all that.
  55. Richard Wrangham – Catching Fire: How Cooking Made Us Human
    Absolutely fascinating, and highly recommended. Cooking food makes it easier to digest, and allows otherwise indigestible nutrients to be absorbed. This is what made the large, energy-intensive human brain possible. We are literally evolved to cook.

Exports Good, Imports Bad?

Most people think that exports are good, and imports are bad. Exports create jobs, imports destroy them. Don Boudreaux, in one of his inimitable letters to the editor, quotes the economist Frank Knight on what this actually means:

“The man from Mars reading the typical pronouncements of our best financial writers or statesmen could hardly avoid the conclusion that a nation’s prosperity depends upon getting rid of the greatest possible amount of goods and avoiding the receipt of anything tangible in payment for them.”

Yes, people really do think that way. We call many of them politicians. Read Don’s entire letter here.

Seven Billion People

Sometime today, the UN estimates that world population will hit 7 billion people. Some people are worried about how those 7 billion mouths will be fed. Here’s Paul Ehrlich in 1968’s The Population Bomb, when world population was not yet 4 billion:

The battle to feed all of humanity is over. In the 1970s the world will undergo famines – hundreds of millions of people are going to starve to death in spite of any crash program embarked upon now.

Not so much, thankfully. Ehrlich and other people who live in bed-wetting fear of their fellow man forget that people are more than stomachs; they are also brains. And brains have an increasing return to scale. The more of them there are, and the more they can interact and exchange with one another, the faster they can quiet rumbling stomachs.

That’s why real world per capita GDP is 16 times higher than it was before the Industrial Revolution — even without correcting for the increased quality of goods. Including that omission would bring the increase to something like 100-fold, according to the economist Deirdre McCloskey. And this is per capita; remember, world population has increased about 7-fold since 1800.

The data are simply astonishing. 7 times as many of us are each at least 16 times and as much as 100 times better off than our great-great-great-great grandparents. This is the single most important event in human history since the Agricultural Revolution. It is so important that McCloskey calls it the Great Fact.

And the data show no signs of the Great Fact reversing itself, or even slowing down. if anything, China and India’s recent partial embrace of liberalism has quickened the brain’s still-incomplete conquest over the stomach.

Former CEI Warren Brookes Fellow Ron Bailey has more at Reason. Elsewhere, Steven Landsburg thinks that current human population might be too small.

Don Boudreaux on Trade

This video is a quick primer on trade from George Mason University economics professor (and CEI adjunct) Don Boudreaux, who literally wrote the book about it. Well, a book about it; see also here and here for quality reading on trade, not to mention Fran Smith and Nick DeLong’s new CEI study, “Free Trade without Apology.” Click here if the embedded video doesn’t work.

It Gets Better: Sears Catalog Edition

I forget who I’m paraphrasing here, but the two iron laws of modernity are 1) things are getting better, and 2) people think they’re getting worse. The short video at the bottom of this post is one way to prove the first law to victims of the second law. It’s a rough cut adapted from a recent talk Don Boudreaux gave; I eagerly await the full version.

When I took macroeconomics in graduate school, the professor circulated a Sears catalog from 1900 or so around the classroom. Most of the prices were given in cents, not dollars. Now imagine that you could buy anything you wanted from that catalog today at those low prices. They’re still too expensive. Take these vacuum cleaners pictured below:

$12.50 for a vacuum cleaner? What a deal! And yet, given the choice, I would not buy it. Too expensive. I wouldn’t even be willing to pay $5.00 for it. Heck, I wouldn’t even want it for free.

Why is even a price of zero too expensive for that vacuum? Because it doesn’t even use electricity. It’s manually powered. No thanks. I’m better off with the $90 vacuum I bought a few years ago.

Of course, I’ve been ignoring inflation. As a useful public service, the Minneapolis Fed has an inflation calculator right on its homepage. It only goes back to 1913, and our vacuum is a 1909. But that’s close enough for the point I’m making.

If that vacuum cost $12.50 in 1913, it would cost $285.17 in 2011. This manually powered vacuum, that I wouldn’t pay a dime for, is three times as expensive in real terms as my electric vacuum.

Things are better now. Modernity is a blessing. The first law holds. Hopefully the second law won’t prove quite so rigid.

Click here if the embedded video below doesn’t work. It’s well worth 1:26 of your time to watch.

CEI Podcast for June 15, 2011: Do ATMs Kill Jobs?

 

 

Have a listen here.

In a recent NBC interview, President Obama blamed ATMs for taking away bank tellers’ jobs, and computerized airline check-in kiosks for eliminating aviation jobs. Communications Coordinator Lee Doren points out that innovation doesn’t affect the number of jobs so much as the types of jobs. Accomplishing more while using less labor is actually the key to prosperity. People looking for an explanation for today’s high unemployment need to look elsewhere.

Giving Back to the Community

People often refer to their charitable efforts as “giving back.” This is a misuse of language; what did they take? No, they are simply giving. Here’s an excerpt from a classic Don Boudreaux letter:

Dear Ritz-Carlton:

Thanks for your e-mail celebrating your and your employees’ participation in “Give Back Getaways” – activities in which you and your employees (along with some of your customers) “give back to the community.”

Have you taken something that doesn’t belong to you?  If so, by all means give it back!  (But please don’t applaud yourself for doing so.)

Read the whole thing.

Individualism Doesn’t Mean Isolationism

Don Boudreaux hits a home run.

Country of Origin Labels Are False Advertising

Don Boudreaux makes good sense on why country of origin labels only tell part of the story of where a product comes from:

Yes, Mr. Hoch’s socks say “Made in Swaziland,” but who developed the computer software to operate the loom that wove the cloth used to make his socks?  Who designed the loom itself?  Who figured out how to transform crude oil into the elastic in the socks?  Who devised the method for pooling risks so that the Swaziland factory is profitably insured against fire and that the cargo ship carrying his socks to America is profitably insured against sinking?

Don concludes:

In fact, Mr. Hoch’s socks – and nearly everything else that he consumes – should be labeled “Made on earth,” for they truly are global phenomena.

Read the whole thing. Keep it in mind the next time someone grouses –falsely — that America doesn’t make anything anymore, or that Americans buy too many goods from foreigners.

Joe Biden’s Weak Case for Government Meddling

Joe Biden believes that government played a large role in the success of railroads in the 19th century. In this video, Don Boudreaux points out that that isn’t actually true. There were four transcontinental railroads. Three of them received subsidies.  The fourth was the Great Northern Railway, founded by Canadian immigrant James J. Hill. He alone rejected any special government favors.

All three subsidized railroads went into receivership. Hill’s Great Northern Railway remained solvent, and is still in business today as the BNSF Railroad.