Book Review – Good Economics for Hard Times

Image: Good Economics for Hard Times by Lucy Lantz (CC BY-NC-ND)

5 out of 5 stars

Good Economics for Hard Times by Abhijit V. Banerjee and Esther Duflo is an engaging and highly relevant book on what decades of social policies and experiments can teach us about the problems currently plaguing America and other countries, including developing states. The authors discuss some of the most controversial political issues, such as immigration and trade. They approach each problem from a balanced viewpoint, illustrating the pros and cons of various economists’ conclusions, before revealing their ideas, which tend to be liberal (although the authors provide constructive criticism of both political parties).

Banerjee and Duflo readily admit the shortcomings of the field of economics - namely, that a true experiment on an economy is nearly impossible to achieve given the extensive list of variables in any economy. The authors do, however, provide ample data for each of their claims, most of which come from the effects of policies and the comparison of different groups. While the authors reference many well-known economic positions, their conclusions are often surprising.

For instance, Banerjee and Duflo make the argument that growth should not be a country’s goal. There is no reliable recipe for growth, and it tends to favor the already wealthy. Instead, the authors claim that countries should seek to reduce inequality through methods that have been shown to be helpful in trials and should focus on improving quality of life, which is not necessarily measured through growth.

Overall, Good Economics for Hard Times is an enjoyable analysis of currently hot political issues. It is comprehensive enough to be enjoyable for the many prominent economists whose positive reviews rest on its back cover, yet it is accessible for readers who have never taken an economics class in their lives. I would strongly recommend the book to anyone who wishes to be a more informed voter and citizen. I rate this book 5 out of 5 stars.