How Markets Fail: The Logic of Economic Calamities by John Cassidy. John is a staff writer at The New Yorker and teaches at the Institute for New Economic Thinking. This book was a 2010 Pulitzer Prize Finalist in General Nonfiction.
John has certainly written a very well structured book on economic markets divided into three parts: Utopian Economics, Reality-Based Economics, and The Great Crunch. This provides necessary insights to the very long history of economics. In addition, John shows how they have repeatedly failed from the 1700s to the the 2008 economic crisis.
I certainly enjoyed John sharing multiple points of historic economic failures via the insights of all economic experts at the time.
Utopian Economics
John places part one into a Utopian view. He reveals how attempts to link the macro and micro divisions of the economic model result in errors. At the same time it may not really apply across today’s COVID, gig economy.
Repeatedly the economic experts in the 1800s were very wrong. This view really cannot translate today across the globalized world. He also views the economic crisis of 2008 as a drastic market failure. The development and repair were excluded by the systems of the dominant economic paradigm of the past three decades.” John certainly illustrates how utopians believed in the infallible invisible hand of the market via Adam Smith, David Ricardo, and John Stuart Mill.