Not only THE economics text..., 22 Jun 2007
This book provided the foundation for most economic policy (in the west at least) through the middle of the 20th century, and as such must be considered among the most important books ever published. It will show the reader why certain decisions were taken, and how we got to where we are. Even if you don't agree with Keynes' theories this is an indispensable guide for anyone who wants to understand government economic policy.

Beyond his importance as an economist however, Keynes was a member of the Bloomsbury group of artists and Bohemians, and that is reflected in his writing. This is no novel, but there are few better written economic texts.

In the long-run, we are all dead so read this book, 11 Jun 2004
This book, by the farther of modern macroeconomics, is one of the most influential economic texts to date. Not only did it form the basis of the post-war consensus, in the UK, but also in Europe and Northern America.

This book, however, is worth a read in its own right. This will enable anyone to understand the budget with much more ease. Also if anyone is doing a course in Economics or Political Economy, it comes highly recommended.

The Bible of Economics, 07 May 2004
It is on this book that all subsequent economic has either been based, or has been compared to.
As a student of economics, this book is a MUST read, fully explaining the theories of Aggregate Demand and it's effects (which Classical economists will tend to ignore) and how to influence this through the AD equation.
For the average reader, this book will explain much of the world around you, and will make budget speeches make much more sense.
All together, possibly one of the most important economic books of all time, still pertinent and holding still truer as the current gov't holds a Keynesian course on the economy whilst it flourishes.

The best piece of Economic literature of all time, 31 Jan 2002
Although this book is slightly aged after the abolition of hereditary peers and devolution for Scotland and Wales, it is still worth reading for it's excellent and comprehensive critique of New Right Policy. The book starts with how the Conservatives fused Neo liberal thought with popular policies, creating an electoral machine which won four general elections in a row. It talks about how the Conservatives managed to manipulate the uncodified British constitution to great effect during the 1930's and 1940's.

It simultaneously charts the crisis among the British Left, and the European Left in general, and how the New Labour experiment attempted to deal with this. The main thrust of the book is that the last twenty odd years have been an experiment in free market economics which have had serious effects on social cohesion, and given us the lowest paid workforce, yet the highest paid executives in Europe.

The basis of modern economic debate, 02 May 1999
While I tend towards the opposing view of Classical economics, Keynesian economics cannot easily be argued away. Keynes' theories are the foundation of our present Federal Reserve system and remain the basis for much of modern economic thought. Definitely a must-read for any aspiring economist.

Not only THE economics text..., 22 Jun 2007
This book provided the foundation for most economic policy (in the west at least) through the middle of the 20th century, and as such must be considered among the most important books ever published. It will show the reader why certain decisions were taken, and how we got to where we are. Even if you don't agree with Keynes' theories this is an indispensable guide for anyone who wants to understand government economic policy.

Beyond his importance as an economist however, Keynes was a member of the Bloomsbury group of artists and Bohemians, and that is reflected in his writing. This is no novel, but there are few better written economic texts.

In the long-run, we are all dead so read this book, 11 Jun 2004
This book, by the farther of modern macroeconomics, is one of the most influential economic texts to date. Not only did it form the basis of the post-war consensus, in the UK, but also in Europe and Northern America.

This book, however, is worth a read in its own right. This will enable anyone to understand the budget with much more ease. Also if anyone is doing a course in Economics or Political Economy, it comes highly recommended.

The Bible of Economics, 07 May 2004
It is on this book that all subsequent economic has either been based, or has been compared to.
As a student of economics, this book is a MUST read, fully explaining the theories of Aggregate Demand and it's effects (which Classical economists will tend to ignore) and how to influence this through the AD equation.
For the average reader, this book will explain much of the world around you, and will make budget speeches make much more sense.
All together, possibly one of the most important economic books of all time, still pertinent and holding still truer as the current gov't holds a Keynesian course on the economy whilst it flourishes.

The best piece of Economic literature of all time, 31 Jan 2002
Although this book is slightly aged after the abolition of hereditary peers and devolution for Scotland and Wales, it is still worth reading for it's excellent and comprehensive critique of New Right Policy. The book starts with how the Conservatives fused Neo liberal thought with popular policies, creating an electoral machine which won four general elections in a row. It talks about how the Conservatives managed to manipulate the uncodified British constitution to great effect during the 1930's and 1940's.

It simultaneously charts the crisis among the British Left, and the European Left in general, and how the New Labour experiment attempted to deal with this. The main thrust of the book is that the last twenty odd years have been an experiment in free market economics which have had serious effects on social cohesion, and given us the lowest paid workforce, yet the highest paid executives in Europe.

The basis of modern economic debate, 02 May 1999
While I tend towards the opposing view of Classical economics, Keynesian economics cannot easily be argued away. Keynes' theories are the foundation of our present Federal Reserve system and remain the basis for much of modern economic thought. Definitely a must-read for any aspiring economist.

A useful crash course on Adam Smith's discourse, 22 Sep 2008
I can only describe this particular edition of Wealth of Nations as a useful crash course on Adam Smith's discourse, mindful of the fact that there were five editions of this historically significant work. But then that's the beauty of this condensed compendium.

Most editions available in the market draw on Smith's Wealth of Nation Volume I (Of the causes of improvement), Volume II (Of the Nature, Accumulation, and Employment of Stock) and Volume III (Of the different Progress of Opulence in different Nations) at the most. However, this edition contains healthy inclusions from Book IV (Of Systems of political Economy) and Book V (Of the Revenue of the Sovereign or Commonwealth). For this alone, the editor Kathryn Sutherland deserves credit.

It is not a mouthful but a practical handy book on Wealth of Nations. Those who have never studied economics would enjoy reading it too if they are so inclined, especially students of history and philosophy. Since this is a complex work authored over two hundred years ago, the editor's footnotes and references enhance comprehension.

Yet the wonderful details of Smith's key thoughts have not been stifled in any way - working of the markets, division of labour, general prosperity, government and taxation are all there. In essence, Wealth of Nations remains a true classic and I found this edition of it to be an easy and enjoyable read. Overall, its a handy reference book to have on your bookshelf.

where many things began, 16 May 2003
I loved this book, not for it's economic content but for it's wonderfully overarching principles and view of history, philosophy and economics. I have never studied economics in any way and read this book purely on it's historical importants, and yet I found it facinating. I would not say this is the book for anyone wanting to understand the complexeties of the modern ecomemy, interest rates, futures markets or whatever, but for those who whant a very complete and well thought out examination of how the human world is put together this work cannot be faulted.

Though it was writeen over 2 centuries ago this edition makes perfect sence of the text without changing it, it's almost 200 pages of footnotes provide innumerate refrences to interesting asspects of history and sociaology meaning that that you never have to go and look things up anywhere else, whilst the decision to mix smits own spellings and spellings and inconsistancies with a more modern english gives the book an atmosphere when reading it of what the authour really meant.

It's use today is primerilly one of historical importance, his analesis of tax collection for example bares hardly any relation to modern tax systems, or at least those in the weastern world, but wht it does do is represent a model of the world on which it is very easy to hang modern principles and situations, havingt read this book you realise just how integrated things can be, and how things have evolved.

Smith explains all this in wonderful deatail with many examples and explanations which mean that though his ideas may seem confusing the dedicated reader should not get to confused, and at the end I was very much left with the impression that it had all been worth it.

a real gem

Money comes second:Smith was a enlightened moral philosopher, 05 Aug 2000
Adam Smith (Professor of Moral Philosophy at Glasgow) had previously written 'The Moral Theory of Sentiments' and had probably intended to write a third (spiritual) overarching work. He died. The accute analyses he finished have flaws as well as much merit. His works are in the first division of merit. To consider him only as an economist (he was the first) is to think of life partially. Wealth of Nations (hasn't Porter essentially copied the economics) is a broader attempt to understand the relationships between money and people.

I come here by accident, but don't many

Angus

Oh, How much we owe Smith!, 20 Jul 1999
I must take exception to the Amazon review: saying that Smith viewed Capitalism suspiciously is utterly untenable. From the very first chapter, Smith makes clear the genius of markets, the benefits of the division of labor, and how government intrusion upon "perfect liberty" creates economic inefficiencies. As the Industrial Revolution was in its infancy, Smith keenly perceived the theoretical framework for its future development: property rights, markets, free trade, and government non-intervention. These institutions allowed for unprecedented economic growth (there was more economic growth in the 19th century than in the preceeding 4000 years) and thus the sustainability of modern life. We cannot express enough gratitude to Dr. Smith.

The Great Work of a Great Mind., 10 Jun 1999
Although this book is hailed as one of the greatest works in Economics ever and set the foundations for contemporary Economic thought, the Wealth of Nations is not a good read. It is extremely difficult to digest and requires extreme concentration. Few would read the book unless required in an Economics course or the like. Smith was undoubtedly a genius - way ahead of his time. However, the reader must have as great an intellect to fully comprehend what Smith is writing. Perhaps "user-friendly" books were not the fashion of the times.

Not only THE economics text..., 22 Jun 2007
This book provided the foundation for most economic policy (in the west at least) through the middle of the 20th century, and as such must be considered among the most important books ever published. It will show the reader why certain decisions were taken, and how we got to where we are. Even if you don't agree with Keynes' theories this is an indispensable guide for anyone who wants to understand government economic policy.

Beyond his importance as an economist however, Keynes was a member of the Bloomsbury group of artists and Bohemians, and that is reflected in his writing. This is no novel, but there are few better written economic texts.

In the long-run, we are all dead so read this book, 11 Jun 2004
This book, by the farther of modern macroeconomics, is one of the most influential economic texts to date. Not only did it form the basis of the post-war consensus, in the UK, but also in Europe and Northern America.

This book, however, is worth a read in its own right. This will enable anyone to understand the budget with much more ease. Also if anyone is doing a course in Economics or Political Economy, it comes highly recommended.

The Bible of Economics, 07 May 2004
It is on this book that all subsequent economic has either been based, or has been compared to.
As a student of economics, this book is a MUST read, fully explaining the theories of Aggregate Demand and it's effects (which Classical economists will tend to ignore) and how to influence this through the AD equation.
For the average reader, this book will explain much of the world around you, and will make budget speeches make much more sense.
All together, possibly one of the most important economic books of all time, still pertinent and holding still truer as the current gov't holds a Keynesian course on the economy whilst it flourishes.

The best piece of Economic literature of all time, 31 Jan 2002
Although this book is slightly aged after the abolition of hereditary peers and devolution for Scotland and Wales, it is still worth reading for it's excellent and comprehensive critique of New Right Policy. The book starts with how the Conservatives fused Neo liberal thought with popular policies, creating an electoral machine which won four general elections in a row. It talks about how the Conservatives managed to manipulate the uncodified British constitution to great effect during the 1930's and 1940's.

It simultaneously charts the crisis among the British Left, and the European Left in general, and how the New Labour experiment attempted to deal with this. The main thrust of the book is that the last twenty odd years have been an experiment in free market economics which have had serious effects on social cohesion, and given us the lowest paid workforce, yet the highest paid executives in Europe.

The basis of modern economic debate, 02 May 1999
While I tend towards the opposing view of Classical economics, Keynesian economics cannot easily be argued away. Keynes' theories are the foundation of our present Federal Reserve system and remain the basis for much of modern economic thought. Definitely a must-read for any aspiring economist.

A useful crash course on Adam Smith's discourse, 22 Sep 2008
I can only describe this particular edition of Wealth of Nations as a useful crash course on Adam Smith's discourse, mindful of the fact that there were five editions of this historically significant work. But then that's the beauty of this condensed compendium.

Most editions available in the market draw on Smith's Wealth of Nation Volume I (Of the causes of improvement), Volume II (Of the Nature, Accumulation, and Employment of Stock) and Volume III (Of the different Progress of Opulence in different Nations) at the most. However, this edition contains healthy inclusions from Book IV (Of Systems of political Economy) and Book V (Of the Revenue of the Sovereign or Commonwealth). For this alone, the editor Kathryn Sutherland deserves credit.

It is not a mouthful but a practical handy book on Wealth of Nations. Those who have never studied economics would enjoy reading it too if they are so inclined, especially students of history and philosophy. Since this is a complex work authored over two hundred years ago, the editor's footnotes and references enhance comprehension.

Yet the wonderful details of Smith's key thoughts have not been stifled in any way - working of the markets, division of labour, general prosperity, government and taxation are all there. In essence, Wealth of Nations remains a true classic and I found this edition of it to be an easy and enjoyable read. Overall, its a handy reference book to have on your bookshelf.

where many things began, 16 May 2003
I loved this book, not for it's economic content but for it's wonderfully overarching principles and view of history, philosophy and economics. I have never studied economics in any way and read this book purely on it's historical importants, and yet I found it facinating. I would not say this is the book for anyone wanting to understand the complexeties of the modern ecomemy, interest rates, futures markets or whatever, but for those who whant a very complete and well thought out examination of how the human world is put together this work cannot be faulted.

Though it was writeen over 2 centuries ago this edition makes perfect sence of the text without changing it, it's almost 200 pages of footnotes provide innumerate refrences to interesting asspects of history and sociaology meaning that that you never have to go and look things up anywhere else, whilst the decision to mix smits own spellings and spellings and inconsistancies with a more modern english gives the book an atmosphere when reading it of what the authour really meant.

It's use today is primerilly one of historical importance, his analesis of tax collection for example bares hardly any relation to modern tax systems, or at least those in the weastern world, but wht it does do is represent a model of the world on which it is very easy to hang modern principles and situations, havingt read this book you realise just how integrated things can be, and how things have evolved.

Smith explains all this in wonderful deatail with many examples and explanations which mean that though his ideas may seem confusing the dedicated reader should not get to confused, and at the end I was very much left with the impression that it had all been worth it.

a real gem

Money comes second:Smith was a enlightened moral philosopher, 05 Aug 2000
Adam Smith (Professor of Moral Philosophy at Glasgow) had previously written 'The Moral Theory of Sentiments' and had probably intended to write a third (spiritual) overarching work. He died. The accute analyses he finished have flaws as well as much merit. His works are in the first division of merit. To consider him only as an economist (he was the first) is to think of life partially. Wealth of Nations (hasn't Porter essentially copied the economics) is a broader attempt to understand the relationships between money and people.

I come here by accident, but don't many

Angus

Oh, How much we owe Smith!, 20 Jul 1999
I must take exception to the Amazon review: saying that Smith viewed Capitalism suspiciously is utterly untenable. From the very first chapter, Smith makes clear the genius of markets, the benefits of the division of labor, and how government intrusion upon "perfect liberty" creates economic inefficiencies. As the Industrial Revolution was in its infancy, Smith keenly perceived the theoretical framework for its future development: property rights, markets, free trade, and government non-intervention. These institutions allowed for unprecedented economic growth (there was more economic growth in the 19th century than in the preceeding 4000 years) and thus the sustainability of modern life. We cannot express enough gratitude to Dr. Smith.

The Great Work of a Great Mind., 10 Jun 1999
Although this book is hailed as one of the greatest works in Economics ever and set the foundations for contemporary Economic thought, the Wealth of Nations is not a good read. It is extremely difficult to digest and requires extreme concentration. Few would read the book unless required in an Economics course or the like. Smith was undoubtedly a genius - way ahead of his time. However, the reader must have as great an intellect to fully comprehend what Smith is writing. Perhaps "user-friendly" books were not the fashion of the times.

Tim does it again!, 21 May 2008
Tim Harford has again managed to write a book on Economics that I read in a weekend (well Thursday to Saturday, but weekends are stretchy!). Give that I've tried and failed to finish the Black Swan and wasn't really all that impressed with Freakonomics that's a pretty big recommendation.

In this book Harford dwells more on how cities can be more amenable to live in, rational prostitutes and race and sex roles. You can tell he's started a family since the last book as a lot of the topics focus on 'quality of life' issues.

Again underlying the book is that we make rational choices within our limitations and that we respond to incentives with surprising deftness. Other reviewers have been quite critical of this thesis but Harford defends it really well. He explains why if I go to a playgroup with my son why I'm likely to be one of the only men there, why cities end up segregated because of relatively mild preferences and why it's rational under certain circumstance for a prostitute not to use a condom (no really!).

I really enjoy these books, it's just a shame he doesn't write for the Independent (as I'd get to read his weekly column).

Dr Pangloss rides again, 05 May 2008
Hmmm... The whole edifice of classical economics is baed on the premise that individuals will always make rational choices based on their self-interest, to the ultimate benefit of society as a whole. Of course, anyone who takes the odd glance outside the study at the real world will be a bit nonplussed by this contention, because it appears as if many people make rather irrational choices, with some difficult implications for a theory that assumes the optimum allocation of resources.

It's the kind of 'heads I win, tails you lose' defence of market fundamentalism that looks increasinlgy threadbare in the post-LTCM, sub-prime world of market failure, as central bankers desperately try to shore up the capital markets in the wake of an excess of rationality. However, if you can show that all those 'irrational' choices are, in fact, perfectly rational, then the edifice survives intact and there is no need for reform - all is for the best in the best of possible worlds.

Dissaponting, but makes a good door stopper, 01 May 2008
I have not read The Undercover Economist, and I certainly don't plan to after I've read this book, that is if it's as bland and obvious as the logic of life. I stuck with the book after 150pages then put it down feeling disappointed and conned after reading some of the reviews. I imagined that I'd be intellectually inspired or intrigued by some of the theories Harford postulates. Ocassionally, i let out a tiny grubble at some mildly interesting anecdotes. Overall, a book wholly committed to rationalising pretty much everything is fraile with limited attributes.
Boring !!


Math Applied to Common Decisions, 23 Apr 2008
Many of the popular books about economics seek to convince you that human beings are wildly illogical. Why? Because the dollars and sense of what people say and do don't always match up well. Tim Harford gets past that problem by mostly ignoring the academic studies that seem far removed from reality by emphasizing what people do when they are new to something.

The book is at its best when he's explaining how systemic biases can create large shifts in human behavior. For instance, a slight preference for having neighbors who are like oneself can lead to quite substantial segregation along race, religion, education, and economic lines.

For me, the book lacked any big "gotcha" like the finding that abortions may have contributed to lowering crime.

In almost every section, I thought that Mr. Harford was arguing (or at least haranguing) beyond the limits of his evidence.

When he moves beyond being an observer into someone trying to convince you what people are like, I found he was often offensive. There's a section about how those who aren't native to Africa "solved" the problem of dying from malaria by transferring slaves from Africa to milder climates that's insensitive at best.

To Mr. Harford's eye, we are so much creatures of economics, comfort, and the pursuit of gain that there's no role for any other human motives. That's a too limited view of people . . . and hardly an uplifting one.

Unless you are addicted to Mr. Harford's writing, skip this book. It won't tell you much that you need to know.

Math Applied to Common Decisions, 23 Apr 2008
Many of the popular books about economics seek to convince you that human beings are wildly illogical. Why? Because the dollars and sense of what people say and do don't always match up well. Tim Harford gets past that problem by mostly ignoring the academic studies that seem far removed from reality by emphasizing what people do when they are new to something.

The book is at its best when he's explaining how systemic biases can create large shifts in human behavior. For instance, a slight preference for having neighbors who are like oneself can lead to quite substantial segregation along race, religion, education, and economic lines.

For me, the book lacked any big "gotcha" like the finding that abortions may have contributed to lowering crime.

In almost every section, I thought that Mr. Harford was arguing (or at least haranguing) beyond the limits of his evidence.

When he moves beyond being an observer into someone trying to convince you what people are like, I found he was often offensive. There's a section about how those who aren't native to Africa "solved" the problem of dying from malaria by transferring slaves from Africa to milder climates that's insensitive at best.

To Mr. Harford's eye, we are so much creatures of economics, comfort, and the pursuit of gain that there's no role for any other human motives. That's a too limited view of people . . . and hardly an uplifting one.

Unless you are addicted to Mr. Harford's writing, skip this book. It won't tell you much that you need to know.

Not only THE economics text..., 22 Jun 2007
This book provided the foundation for most economic policy (in the west at least) through the middle of the 20th century, and as such must be considered among the most important books ever published. It will show the reader why certain decisions were taken, and how we got to where we are. Even if you don't agree with Keynes' theories this is an indispensable guide for anyone who wants to understand government economic policy.

Beyond his importance as an economist however, Keynes was a member of the Bloomsbury group of artists and Bohemians, and that is reflected in his writing. This is no novel, but there are few better written economic texts.

In the long-run, we are all dead so read this book, 11 Jun 2004
This book, by the farther of modern macroeconomics, is one of the most influential economic texts to date. Not only did it form the basis of the post-war consensus, in the UK, but also in Europe and Northern America.

This book, however, is worth a read in its own right. This will enable anyone to understand the budget with much more ease. Also if anyone is doing a course in Economics or Political Economy, it comes highly recommended.

The Bible of Economics, 07 May 2004
It is on this book that all subsequent economic has either been based, or has been compared to.
As a student of economics, this book is a MUST read, fully explaining the theories of Aggregate Demand and it's effects (which Classical economists will tend to ignore) and how to influence this through the AD equation.
For the average reader, this book will explain much of the world around you, and will make budget speeches make much more sense.
All together, possibly one of the most important economic books of all time, still pertinent and holding still truer as the current gov't holds a Keynesian course on the economy whilst it flourishes.

The best piece of Economic literature of all time, 31 Jan 2002
Although this book is slightly aged after the abolition of hereditary peers and devolution for Scotland and Wales, it is still worth reading for it's excellent and comprehensive critique of New Right Policy. The book starts with how the Conservatives fused Neo liberal thought with popular policies, creating an electoral machine which won four general elections in a row. It talks about how the Conservatives managed to manipulate the uncodified British constitution to great effect during the 1930's and 1940's.

It simultaneously charts the crisis among the British Left, and the European Left in general, and how the New Labour experiment attempted to deal with this. The main thrust of the book is that the last twenty odd years have been an experiment in free market economics which have had serious effects on social cohesion, and given us the lowest paid workforce, yet the highest paid executives in Europe.

The basis of modern economic debate, 02 May 1999
While I tend towards the opposing view of Classical economics, Keynesian economics cannot easily be argued away. Keynes' theories are the foundation of our present Federal Reserve system and remain the basis for much of modern economic thought. Definitely a must-read for any aspiring economist.

A useful crash course on Adam Smith's discourse, 22 Sep 2008
I can only describe this particular edition of Wealth of Nations as a useful crash course on Adam Smith's discourse, mindful of the fact that there were five editions of this historically significant work. But then that's the beauty of this condensed compendium.

Most editions available in the market draw on Smith's Wealth of Nation Volume I (Of the causes of improvement), Volume II (Of the Nature, Accumulation, and Employment of Stock) and Volume III (Of the different Progress of Opulence in different Nations) at the most. However, this edition contains healthy inclusions from Book IV (Of Systems of political Economy) and Book V (Of the Revenue of the Sovereign or Commonwealth). For this alone, the editor Kathryn Sutherland deserves credit.

It is not a mouthful but a practical handy book on Wealth of Nations. Those who have never studied economics would enjoy reading it too if they are so inclined, especially students of history and philosophy. Since this is a complex work authored over two hundred years ago, the editor's footnotes and references enhance comprehension.

Yet the wonderful details of Smith's key thoughts have not been stifled in any way - working of the markets, division of labour, general prosperity, government and taxation are all there. In essence, Wealth of Nations remains a true classic and I found this edition of it to be an easy and enjoyable read. Overall, its a handy reference book to have on your bookshelf.

where many things began, 16 May 2003
I loved this book, not for it's economic content but for it's wonderfully overarching principles and view of history, philosophy and economics. I have never studied economics in any way and read this book purely on it's historical importants, and yet I found it facinating. I would not say this is the book for anyone wanting to understand the complexeties of the modern ecomemy, interest rates, futures markets or whatever, but for those who whant a very complete and well thought out examination of how the human world is put together this work cannot be faulted.

Though it was writeen over 2 centuries ago this edition makes perfect sence of the text without changing it, it's almost 200 pages of footnotes provide innumerate refrences to interesting asspects of history and sociaology meaning that that you never have to go and look things up anywhere else, whilst the decision to mix smits own spellings and spellings and inconsistancies with a more modern english gives the book an atmosphere when reading it of what the authour really meant.

It's use today is primerilly one of historical importance, his analesis of tax collection for example bares hardly any relation to modern tax systems, or at least those in the weastern world, but wht it does do is represent a model of the world on which it is very easy to hang modern principles and situations, havingt read this book you realise just how integrated things can be, and how things have evolved.

Smith explains all this in wonderful deatail with many examples and explanations which mean that though his ideas may seem confusing the dedicated reader should not get to confused, and at the end I was very much left with the impression that it had all been worth it.

a real gem

Money comes second:Smith was a enlightened moral philosopher, 05 Aug 2000
Adam Smith (Professor of Moral Philosophy at Glasgow) had previously written 'The Moral Theory of Sentiments' and had probably intended to write a third (spiritual) overarching work. He died. The accute analyses he finished have flaws as well as much merit. His works are in the first division of merit. To consider him only as an economist (he was the first) is to think of life partially. Wealth of Nations (hasn't Porter essentially copied the economics) is a broader attempt to understand the relationships between money and people.

I come here by accident, but don't many

Angus

Oh, How much we owe Smith!, 20 Jul 1999
I must take exception to the Amazon review: saying that Smith viewed Capitalism suspiciously is utterly untenable. From the very first chapter, Smith makes clear the genius of markets, the benefits of the division of labor, and how government intrusion upon "perfect liberty" creates economic inefficiencies. As the Industrial Revolution was in its infancy, Smith keenly perceived the theoretical framework for its future development: property rights, markets, free trade, and government non-intervention. These institutions allowed for unprecedented economic growth (there was more economic growth in the 19th century than in the preceeding 4000 years) and thus the sustainability of modern life. We cannot express enough gratitude to Dr. Smith.

The Great Work of a Great Mind., 10 Jun 1999
Although this book is hailed as one of the greatest works in Economics ever and set the foundations for contemporary Economic thought, the Wealth of Nations is not a good read. It is extremely difficult to digest and requires extreme concentration. Few would read the book unless required in an Economics course or the like. Smith was undoubtedly a genius - way ahead of his time. However, the reader must have as great an intellect to fully comprehend what Smith is writing. Perhaps "user-friendly" books were not the fashion of the times.

Tim does it again!, 21 May 2008
Tim Harford has again managed to write a book on Economics that I read in a weekend (well Thursday to Saturday, but weekends are stretchy!). Give that I've tried and failed to finish the Black Swan and wasn't really all that impressed with Freakonomics that's a pretty big recommendation.

In this book Harford dwells more on how cities can be more amenable to live in, rational prostitutes and race and sex roles. You can tell he's started a family since the last book as a lot of the topics focus on 'quality of life' issues.

Again underlying the book is that we make rational choices within our limitations and that we respond to incentives with surprising deftness. Other reviewers have been quite critical of this thesis but Harford defends it really well. He explains why if I go to a playgroup with my son why I'm likely to be one of the only men there, why cities end up segregated because of relatively mild preferences and why it's rational under certain circumstance for a prostitute not to use a condom (no really!).

I really enjoy these books, it's just a shame he doesn't write for the Independent (as I'd get to read his weekly column).

Dr Pangloss rides again, 05 May 2008
Hmmm... The whole edifice of classical economics is baed on the premise that individuals will always make rational choices based on their self-interest, to the ultimate benefit of society as a whole. Of course, anyone who takes the odd glance outside the study at the real world will be a bit nonplussed by this contention, because it appears as if many people make rather irrational choices, with some difficult implications for a theory that assumes the optimum allocation of resources.

It's the kind of 'heads I win, tails you lose' defence of market fundamentalism that looks increasinlgy threadbare in the post-LTCM, sub-prime world of market failure, as central bankers desperately try to shore up the capital markets in the wake of an excess of rationality. However, if you can show that all those 'irrational' choices are, in fact, perfectly rational, then the edifice survives intact and there is no need for reform - all is for the best in the best of possible worlds.

Dissaponting, but makes a good door stopper, 01 May 2008
I have not read The Undercover Economist, and I certainly don't plan to after I've read this book, that is if it's as bland and obvious as the logic of life. I stuck with the book after 150pages then put it down feeling disappointed and conned after reading some of the reviews. I imagined that I'd be intellectually inspired or intrigued by some of the theories Harford postulates. Ocassionally, i let out a tiny grubble at some mildly interesting anecdotes. Overall, a book wholly committed to rationalising pretty much everything is fraile with limited attributes.
Boring !!


Math Applied to Common Decisions, 23 Apr 2008
Many of the popular books about economics seek to convince you that human beings are wildly illogical. Why? Because the dollars and sense of what people say and do don't always match up well. Tim Harford gets past that problem by mostly ignoring the academic studies that seem far removed from reality by emphasizing what people do when they are new to something.

The book is at its best when he's explaining how systemic biases can create large shifts in human behavior. For instance, a slight preference for having neighbors who are like oneself can lead to quite substantial segregation along race, religion, education, and economic lines.

For me, the book lacked any big "gotcha" like the finding that abortions may have contributed to lowering crime.

In almost every section, I thought that Mr. Harford was arguing (or at least haranguing) beyond the limits of his evidence.

When he moves beyond being an observer into someone trying to convince you what people are like, I found he was often offensive. There's a section about how those who aren't native to Africa "solved" the problem of dying from malaria by transferring slaves from Africa to milder climates that's insensitive at best.

To Mr. Harford's eye, we are so much creatures of economics, comfort, and the pursuit of gain that there's no role for any other human motives. That's a too limited view of people . . . and hardly an uplifting one.

Unless you are addicted to Mr. Harford's writing, skip this book. It won't tell you much that you need to know.

Math Applied to Common Decisions, 23 Apr 2008
Many of the popular books about economics seek to convince you that human beings are wildly illogical. Why? Because the dollars and sense of what people say and do don't always match up well. Tim Harford gets past that problem by mostly ignoring the academic studies that seem far removed from reality by emphasizing what people do when they are new to something.

The book is at its best when he's explaining how systemic biases can create large shifts in human behavior. For instance, a slight preference for having neighbors who are like oneself can lead to quite substantial segregation along race, religion, education, and economic lines.

For me, the book lacked any big "gotcha" like the finding that abortions may have contributed to lowering crime.

In almost every section, I thought that Mr. Harford was arguing (or at least haranguing) beyond the limits of his evidence.

When he moves beyond being an observer into someone trying to convince you what people are like, I found he was often offensive. There's a section about how those who aren't native to Africa "solved" the problem of dying from malaria by transferring slaves from Africa to milder climates that's insensitive at best.

To Mr. Harford's eye, we are so much creatures of economics, comfort, and the pursuit of gain that there's no role for any other human motives. That's a too limited view of people . . . and hardly an uplifting one.

Unless you are addicted to Mr. Harford's writing, skip this book. It won't tell you much that you need to know.

Economics is not seventeenth century physics, 21 Nov 2008
As someone who is deeply interested in underlying ideas particularly philosophy - including the philosophy of science - I found this book interesting. Having obtained 'A' levels in chemistry, mathematics and physics, I opted to read for a degree in mechanical engineering. This necessitated studying a number of subjects most of which were effectively branches of mathematics and physics. I reviewed the book "Engineering Mathematics" by Stroud on this site but I studied much more mathematics than found in that book in my second and third years. I spent a considerable amount of my time learning how to solve advanced differential equations.

When I left university, I joined an accountancy firm and as mentioned under my review of the book "Economics" by Lipsey, I slogged my way through "Positive Economics". I remember about 25 years ago saying to the economics lecturer in the canteen that much of economics that we were doing reminded me (conceptually) of some of my engineering problems in e.g. statics and fluid mechanics and I said that it could probably be mathematicised in a similar fashion. One week later my lecturer brought in several books that were more advanced than what were we required to study for an accountancy examination and showed me that I was right. The advanced models were all based on equilibrium analysis and therefore differential equations could be used.

By the time that I came to read this book, I had recently read Robert Heilbroner's "The Worldy Philosophers" which I have reviewed on this site. The last chapters of this book had discussed new methods of researching in economics including the possibility of devising 'experiments' to illustrate things such as buying and selling behaviour. I had also coincidently reread both Adam Smith's "Wealth of Nations" and Charles Darwin's "Origin of the Species" and several popular books on evolution, complexity theory and chaos theory. As an accountant, I had also been researching into complex mathematical modelling software packages that can be used for developing complex business models and can go well beyond what Excel can do - although it can be used in conjunction with Excel.

When I began reading this book it immediately made sense to me that the nineteenth century economists had tried to base economics on nineteenth century physics (or rather on seventeenth century physics) and by regarding prices and so on as obtaining equilibrium they believed that they could then model the situation in the same way as many (simple) mechanical systems can be modelled. Thus calculus can be applied and the problem becomes one of solving a series of differential equations. (QED).

The trouble is that economic systems don't necessarily tend towards equilibium. Advances in mathematics e.g. complexity theory and chaos theory have demonstrated that there are systems in economics, physics and elsewhere in which equilibrium isn't necessarily even aimed at let alone reached. Some systems can end up permanently out of equilibium. Many processes in economics are analogous to to complex phenomena such as the weather or evolution. Models of increasing complexity can now be studied on powerful computers.

This whole subject is a very interesting, intricate and cross-departmental one and I seemed to come across this book (whether through serendipity or not I don't know) just at the right moment when I was the most prepared to absorb the information. Given the problems that we are now experiencing with our financial markets and within our economy it is imperative that we get our models right.

I enjoyed reading this thoughful and well written book.

How new thinking in economics and business can strengthen each other, 25 Feb 2008
It is hard to understand why in the beginning of 2008 no economist is able to figure out what to do about the financial chaos starting with the sub-prime disaster. If you have read this book you will underst better why it is a chaos and why nobody has any answers. The economy is a complex system, that is chaotic, and anybody that claims to be able to predict what will happen will only be right by luck.
What did I learn from this book? Do not trust anybody that makes a prediction about a complex system. The idea of economic equilibrium in an economic system is absolute nonsense. There is still some hope. Whilst there are no states of equilibrium the changes are not random. It is not total chaos. The economic system like other complex systems has "emergent properties", like periods with wild gyrations and quieter periods. One can hope that with future research one can find out something useful about the causes of these emergent properties, as the basis for policy making.
Evolution is also a complex system. Organisms change at random due to genetic mutations. The mutations that survive and win, fit best in the environment. It is not the survival of the fittest, the one that fights the hardest; it is the random mutation that thrives best in the current environment. This contains an important lesson for business, may be even for competing economic systems. In the longer term wealth in business is created by innovation (these are the equivalent of mutations). Most successful companies fail to innovate because they only focus on improving their products, like more performance, lower costs and different style. To succeed in innovation the company must in addition take the risk of investing in many mutations of which most will fail.
The book has the great merit of multi-disciplinary thinking. It brings together new thinking in economics, business, evolution and complex systems and shows how these disciplines interact and can strengthen each other.


Radical Remaking the challenge established economics, 23 Jan 2008
In short, the book is hugely readable and communicate a significant idea that improve on the current weakness of traditional economic and herald a new era of economics rethinking and innovation. The books appears to be under-publicized and under-recognized, for perhaps it receive fiction from the established academic communities. The 'radical remaking' of economics challenges and invalidate some fundamental concepts such as equilibrium. It should be read by all economists who care economics.

Also it must be said Eric proved to be a good story teller, it blend biology, physics and economics together to demonstrate different concepts.

for instances,
- economic system is a evolutionary system, or complex adaptive system, where agents resemble biological evolution
- market dynamics create disequilibrium and the variation and fluctuation is an integral part of the system, invalidating existing simple equilibrium economics assumption.

Also it explain many underlying components of economic systems, network, the concept of 'design space' for innovation and creation of wealth and offer solutions and what-to-do policy implications for us. While the last section of policy implications is not ground-breaking, the gem of the book lies in the excellent part 2 and 3 explaining 'complexity economics' and 'how evolutions create wealth'.

It is very well written for the common reader, his advocacy and introduction of 'complexity economics' is persuasive and not least it bear academic rigour with over 50 pages of references.

The most importanant book I have read this year (and last), 16 Mar 2007
This book has been an inspiration to me not just once, but consistently over the past year.

Evolution in business and marketing has often been used as a synonym for moving slowly or cautiously (as in "we need to be evolutionary not revolutionary"). Beinhocker shows us that not only is an evolutionary approach to strategy smart, it is the most radical approach.

All of the lessons here are applicable not only to business but any kind of endeavour - I've been applying what I learned here to marketing and media and will continue to do so.


Highly recommended if you work in business, economics or politics, 02 Jan 2007
This book is well worth a read if you're interested in business, economics or politics. I've found myself turning back to re-read chapters over the past few months it's given so much food for thought.

Complexity theory sounds scary. Eric Beinhocker shows that it isn't. He shows how simple and incredibly powerful it is as a way to explain what we see in the real world every day.

The business reader gets an utterly compelling insight into why innovation in big businesses is so hard to pull off. I found myself having 'aha' moments about why innovation at the companies I've worked at is such a challenge. It also led me to think about why Google's seemingly chaotic strategy might just work and to build my own understanding about why services like YouTube and Skype are hard to predict but huge when they happen.

Readers interested in economics see that complexity theory provides the economics profession with a way of explaining the economy without requiring theoretical modelling assumptions that don't reflect reality. I studied economics at Cambridge University several years ago and finally can see an economic theory that more closely reflects the whole story.

And for those interested in politics, Eric Beinhocker shows why Left and Right ultimately is not the best theoretical foundation for explaining how to improve things. Complexity theory provides politicians with a framework that starts with cooperation (Left) and competition (Right) co-existing and builds its policies with both present.

One final prediction: this book will continue to grow in popularity. The world is complex. This book thoroughly stimulates the mind.

Not only THE economics text..., 22 Jun 2007
This book provided the foundation for most economic policy (in the west at least) through the middle of the 20th century, and as such must be considered among the most important books ever published. It will show the reader why certain decisions were taken, and how we got to where we are. Even if you don't agree with Keynes' theories this is an indispensable guide for anyone who wants to understand government economic policy.

Beyond his importance as an economist however, Keynes was a member of the Bloomsbury group of artists and Bohemians, and that is reflected in his writing. This is no novel, but there are few better written economic texts.

In the long-run, we are all dead so read this book, 11 Jun 2004
This book, by the farther of modern macroeconomics, is one of the most influential economic texts to date. Not only did it form the basis of the post-war consensus, in the UK, but also in Europe and Northern America.

This book, however, is worth a read in its own right. This will enable anyone to understand the budget with much more ease. Also if anyone is doing a course in Economics or Political Economy, it comes highly recommended.

The Bible of Economics, 07 May 2004
It is on this book that all subsequent economic has either been based, or has been compared to.
As a student of economics, this book is a MUST read, fully explaining the theories of Aggregate Demand and it's effects (which Classical economists will tend to ignore) and how to influence this through the AD equation.
For the average reader, this book will explain much of the world around you, and will make budget speeches make much more sense.
All together, possibly one of the most important economic books of all time, still pertinent and holding still truer as the current gov't holds a Keynesian course on the economy whilst it flourishes.

The best piece of Economic literature of all time, 31 Jan 2002
Although this book is slightly aged after the abolition of hereditary peers and devolution for Scotland and Wales, it is still worth reading for it's excellent and comprehensive critique of New Right Policy. The book starts with how the Conservatives fused Neo liberal thought with popular policies, creating an electoral machine which won four general elections in a row. It talks about how the Conservatives managed to manipulate the uncodified British constitution to great effect during the 1930's and 1940's.

It simultaneously charts the crisis among the British Left, and the European Left in general, and how the New Labour experiment attempted to deal with this. The main thrust of the book is that the last twenty odd years have been an experiment in free market economics which have had serious effects on social cohesion, and given us the lowest paid workforce, yet the highest paid executives in Europe.

The basis of modern economic debate, 02 May 1999
While I tend towards the opposing view of Classical economics, Keynesian economics cannot easily be argued away. Keynes' theories are the foundation of our present Federal Reserve system and remain the basis for much of modern economic thought. Definitely a must-read for any aspiring economist.

A useful crash course on Adam Smith's discourse, 22 Sep 2008
I can only describe this particular edition of Wealth of Nations as a useful crash course on Adam Smith's discourse, mindful of the fact that there were five editions of this historically significant work. But then that's the beauty of this condensed compendium.

Most editions available in the market draw on Smith's Wealth of Nation Volume I (Of the causes of improvement), Volume II (Of the Nature, Accumulation, and Employment of Stock) and Volume III (Of the different Progress of Opulence in different Nations) at the most. However, this edition contains healthy inclusions from Book IV (Of Systems of political Economy) and Book V (Of the Revenue of the Sovereign or Commonwealth). For this alone, the editor Kathryn Sutherland deserves credit.

It is not a mouthful but a practical handy book on Wealth of Nations. Those who have never studied economics would enjoy reading it too if they are so inclined, especially students of history and philosophy. Since this is a complex work authored over two hundred years ago, the editor's footnotes and references enhance comprehension.

Yet the wonderful details of Smith's key thoughts have not been stifled in any way - working of the markets, division of labour, general prosperity, government and taxation are all there. In essence, Wealth of Nations remains a true classic and I found this edition of it to be an easy and enjoyable read. Overall, its a handy reference book to have on your bookshelf.

where many things began, 16 May 2003
I loved this book, not for it's economic content but for it's wonderfully overarching principles and view of history, philosophy and economics. I have never studied economics in any way and read this book purely on it's historical importants, and yet I found it facinating. I would not say this is the book for anyone wanting to understand the complexeties of the modern ecomemy, interest rates, futures markets or whatever, but for those who whant a very complete and well thought out examination of how the human world is put together this work cannot be faulted.

Though it was writeen over 2 centuries ago this edition makes perfect sence of the text without changing it, it's almost 200 pages of footnotes provide innumerate refrences to interesting asspects of history and sociaology meaning that that you never have to go and look things up anywhere else, whilst the decision to mix smits own spellings and spellings and inconsistancies with a more modern english gives the book an atmosphere when reading it of what the authour really meant.

It's use today is primerilly one of historical importance, his analesis of tax collection for example bares hardly any relation to modern tax systems, or at least those in the weastern world, but wht it does do is represent a model of the world on which it is very easy to hang modern principles and situations, havingt read this book you realise just how integrated things can be, and how things have evolved.

Smith explains all this in wonderful deatail with many examples and explanations which mean that though his ideas may seem confusing the dedicated reader should not get to confused, and at the end I was very much left with the impression that it had all been worth it.

a real gem

Money comes second:Smith was a enlightened moral philosopher, 05 Aug 2000
Adam Smith (Professor of Moral Philosophy at Glasgow) had previously written 'The Moral Theory of Sentiments' and had probably intended to write a third (spiritual) overarching work. He died. The accute analyses he finished have flaws as well as much merit. His works are in the first division of merit. To consider him only as an economist (he was the first) is to think of life partially. Wealth of Nations (hasn't Porter essentially copied the economics) is a broader attempt to understand the relationships between money and people.

I come here by accident, but don't many

Angus

Oh, How much we owe Smith!, 20 Jul 1999
I must take exception to the Amazon review: saying that Smith viewed Capitalism suspiciously is utterly untenable. From the very first chapter, Smith makes clear the genius of markets, the benefits of the division of labor, and how government intrusion upon "perfect liberty" creates economic inefficiencies. As the Industrial Revolution was in its infancy, Smith keenly perceived the theoretical framework for its future development: property rights, markets, free trade, and government non-intervention. These institutions allowed for unprecedented economic growth (there was more economic growth in the 19th century than in the preceeding 4000 years) and thus the sustainability of modern life. We cannot express enough gratitude to Dr. Smith.

The Great Work of a Great Mind., 10 Jun 1999
Although this book is hailed as one of the greatest works in Economics ever and set the foundations for contemporary Economic thought, the Wealth of Nations is not a good read. It is extremely difficult to digest and requires extreme concentration. Few would read the book unless required in an Economics course or the like. Smith was undoubtedly a genius - way ahead of his time. However, the reader must have as great an intellect to fully comprehend what Smith is writing. Perhaps "user-friendly" books were not the fashion of the times.

Tim does it again!, 21 May 2008
Tim Harford has again managed to write a book on Economics that I read in a weekend (well Thursday to Saturday, but weekends are stretchy!). Give that I've tried and failed to finish the Black Swan and wasn't really all that impressed with Freakonomics that's a pretty big recommendation.

In this book Harford dwells more on how cities can be more amenable to live in, rational prostitutes and race and sex roles. You can tell he's started a family since the last book as a lot of the topics focus on 'quality of life' issues.

Again underlying the book is that we make rational choices within our limitations and that we respond to incentives with surprising deftness. Other reviewers have been quite critical of this thesis but Harford defends it really well. He explains why if I go to a playgroup with my son why I'm likely to be one of the only men there, why cities end up segregated because of relatively mild preferences and why it's rational under certain circumstance for a prostitute not to use a condom (no really!).

I really enjoy these books, it's just a shame he doesn't write for the Independent (as I'd get to read his weekly column).

Dr Pangloss rides again, 05 May 2008
Hmmm... The whole edifice of classical economics is baed on the premise that individuals will always make rational choices based on their self-interest, to the ultimate benefit of society as a whole. Of course, anyone who takes the odd glance outside the study at the real world will be a bit nonplussed by this contention, because it appears as if many people make rather irrational choices, with some difficult implications for a theory that assumes the optimum allocation of resources.

It's the kind of 'heads I win, tails you lose' defence of market fundamentalism that looks increasinlgy threadbare in the post-LTCM, sub-prime world of market failure, as central bankers desperately try to shore up the capital markets in the wake of an excess of rationality. However, if you can show that all those 'irrational' choices are, in fact, perfectly rational, then the edifice survives intact and there is no need for reform - all is for the best in the best of possible worlds.

Dissaponting, but makes a good door stopper, 01 May 2008
I have not read The Undercover Economist, and I certainly don't plan to after I've read this book, that is if it's as bland and obvious as the logic of life. I stuck with the book after 150pages then put it down feeling disappointed and conned after reading some of the reviews. I imagined that I'd be intellectually inspired or intrigued by some of the theories Harford postulates. Ocassionally, i let out a tiny grubble at some mildly interesting anecdotes. Overall, a book wholly committed to rationalising pretty much everything is fraile with limited attributes.
Boring !!


Math Applied to Common Decisions, 23 Apr 2008
Many of the popular books about economics seek to convince you that human beings are wildly illogical. Why? Because the dollars and sense of what people say and do don't always match up well. Tim Harford gets past that problem by mostly ignoring the academic studies that seem far removed from reality by emphasizing what people do when they are new to something.

The book is at its best when he's explaining how systemic biases can create large shifts in human behavior. For instance, a slight preference for having neighbors who are like oneself can lead to quite substantial segregation along race, religion, education, and economic lines.

For me, the book lacked any big "gotcha" like the finding that abortions may have contributed to lowering crime.

In almost every section, I thought that Mr. Harford was arguing (or at least haranguing) beyond the limits of his evidence.

When he moves beyond being an observer into someone trying to convince you what people are like, I found he was often offensive. There's a section about how those who aren't native to Africa "solved" the problem of dying from malaria by transferring slaves from Africa to milder climates that's insensitive at best.

To Mr. Harford's eye, we are so much creatures of economics, comfort, and the pursuit of gain that there's no role for any other human motives. That's a too limited view of people . . . and hardly an uplifting one.

Unless you are addicted to Mr. Harford's writing, skip this book. It won't tell you much that you need to know.

Math Applied to Common Decisions, 23 Apr 2008
Many of the popular books about economics seek to convince you that human beings are wildly illogical. Why? Because the dollars and sense of what people say and do don't always match up well. Tim Harford gets past that problem by mostly ignoring the academic studies that seem far removed from reality by emphasizing what people do when they are new to something.

The book is at its best when he's explaining how systemic biases can create large shifts in human behavior. For instance, a slight preference for having neighbors who are like oneself can lead to quite substantial segregation along race, religion, education, and economic lines.

For me, the book lacked any big "gotcha" like the finding that abortions may have contributed to lowering crime.

In almost every section, I thought that Mr. Harford was arguing (or at least haranguing) beyond the limits of his evidence.

When he moves beyond being an observer into someone trying to convince you what people are like, I found he was often offensive. There's a section about how those who aren't native to Africa "solved" the problem of dying from malaria by transferring slaves from Africa to milder climates that's insensitive at best.

To Mr. Harford's eye, we are so much creatures of economics, comfort, and the pursuit of gain that there's no role for any other human motives. That's a too limited view of people . . . and hardly an uplifting one.

Unless you are addicted to Mr. Harford's writing, skip this book. It won't tell you much that you need to know.

Economics is not seventeenth century physics, 21 Nov 2008
As someone who is deeply interested in underlying ideas particularly philosophy - including the philosophy of science - I found this book interesting. Having obtained 'A' levels in chemistry, mathematics and physics, I opted to read for a degree in mechanical engineering. This necessitated studying a number of subjects most of which were effectively branches of mathematics and physics. I reviewed the book "Engineering Mathematics" by Stroud on this site but I studied much more mathematics than found in that book in my second and third years. I spent a considerable amount of my time learning how to solve advanced differential equations.

When I left university, I joined an accountancy firm and as mentioned under my review of the book "Economics" by Lipsey, I slogged my way through "Positive Economics". I remember about 25 years ago saying to the economics lecturer in the canteen that much of economics that we were doing reminded me (conceptually) of some of my engineering problems in e.g. statics and fluid mechanics and I said that it could probably be mathematicised in a similar fashion. One week later my lecturer brought in several books that were more advanced than what were we required to study for an accountancy examination and showed me that I was right. The advanced models were all based on equilibrium analysis and therefore differential equations could be used.

By the time that I came to read this book, I had recently read Robert Heilbroner's "The Worldy Philosophers" which I have reviewed on this site. The last chapters of this book had discussed new methods of researching in economics including the possibility of devising 'experiments' to illustrate things such as buying and selling behaviour. I had also coincidently reread both Adam Smith's "Wealth of Nations" and Charles Darwin's "Origin of the Species" and several popular books on evolution, complexity theory and chaos theory. As an accountant, I had also been researching into complex mathematical modelling software packages that can be used for developing complex business models and can go well beyond what Excel can do - although it can be used in conjunction with Excel.

When I began reading this book it immediately made sense to me that the nineteenth century economists had tried to base economics on nineteenth century physics (or rather on seventeenth century physics) and by regarding prices and so on as obtaining equilibrium they believed that they could then model the situation in the same way as many (simple) mechanical systems can be modelled. Thus calculus can be applied and the problem becomes one of solving a series of differential equations. (QED).

The trouble is that economic systems don't necessarily tend towards equilibium. Advances in mathematics e.g. complexity theory and chaos theory have demonstrated that there are systems in economics, physics and elsewhere in which equilibrium isn't necessarily even aimed at let alone reached. Some systems can end up permanently out of equilibium. Many processes in economics are analogous to to complex phenomena such as the weather or evolution. Models of increasing complexity can now be studied on powerful computers.

This whole subject is a very interesting, intricate and cross-departmental one and I seemed to come across this book (whether through serendipity or not I don't know) just at the right moment when I was the most prepared to absorb the information. Given the problems that we are now experiencing with our financial markets and within our economy it is imperative that we get our models right.

I enjoyed reading this thoughful and well written book.

How new thinking in economics and business can strengthen each other, 25 Feb 2008
It is hard to understand why in the beginning of 2008 no economist is able to figure out what to do about the financial chaos starting with the sub-prime disaster. If you have read this book you will underst better why it is a chaos and why nobody has any answers. The economy is a complex system, that is chaotic, and anybody that claims to be able to predict what will happen will only be right by luck.
What did I learn from this book? Do not trust anybody that makes a prediction about a complex system. The idea of economic equilibrium in an economic system is absolute nonsense. There is still some hope. Whilst there are no states of equilibrium the changes are not random. It is not total chaos. The economic system like other complex systems has "emergent properties", like periods with wild gyrations and quieter periods. One can hope that with future research one can find out something useful about the causes of these emergent properties, as the basis for policy making.
Evolution is also a complex system. Organisms change at random due to genetic mutations. The mutations that survive and win, fit best in the environment. It is not the survival of the fittest, the one that fights the hardest; it is the random mutation that thrives best in the current environment. This contains an important lesson for business, may be even for competing economic systems. In the longer term wealth in business is created by innovation (these are the equivalent of mutations). Most successful companies fail to innovate because they only focus on improving their products, like more performance, lower costs and different style. To succeed in innovation the company must in addition take the risk of investing in many mutations of which most will fail.
The book has the great merit of multi-disciplinary thinking. It brings together new thinking in economics, business, evolution and complex systems and shows how these disciplines interact and can strengthen each other.


Radical Remaking the challenge established economics, 23 Jan 2008
In short, the book is hugely readable and communicate a significant idea that improve on the current weakness of traditional economic and herald a new era of economics rethinking and innovation. The books appears to be under-publicized and under-recognized, for perhaps it receive fiction from the established academic communities. The 'radical remaking' of economics challenges and invalidate some fundamental concepts such as equilibrium. It should be read by all economists who care economics.

Also it must be said Eric proved to be a good story teller, it blend biology, physics and economics together to demonstrate different concepts.

for instances,
- economic system is a evolutionary system, or complex adaptive system, where agents resemble biological evolution
- market dynamics create disequilibrium and the variation and fluctuation is an integral part of the system, invalidating existing simple equilibrium economics assumption.

Also it explain many underlying components of economic systems, network, the concept of 'design space' for innovation and creation of wealth and offer solutions and what-to-do policy implications for us. While the last section of policy implications is not ground-breaking, the gem of the book lies in the excellent part 2 and 3 explaining 'complexity economics' and 'how evolutions create wealth'.

It is very well written for the common reader, his advocacy and introduction of 'complexity economics' is persuasive and not least it bear academic rigour with over 50 pages of references.

The most importanant book I have read this year (and last), 16 Mar 2007
This book has been an inspiration to me not just once, but consistently over the past year.

Evolution in business and marketing has often been used as a synonym for moving slowly or cautiously (as in "we need to be evolutionary not revolutionary"). Beinhocker shows us that not only is an evolutionary approach to strategy smart, it is the most radical approach.

All of the lessons here are applicable not only to business but any kind of endeavour - I've been applying what I learned here to marketing and media and will continue to do so.


Highly recommended if you work in business, economics or politics, 02 Jan 2007
This book is well worth a read if you're interested in business, economics or politics. I've found myself turning back to re-read chapters over the past few months it's given so much food for thought.

Complexity theory sounds scary. Eric Beinhocker shows that it isn't. He shows how simple and incredibly powerful it is as a way to explain what we see in the real world every day.

The business reader gets an utterly compelling insight into why innovation in big businesses is so hard to pull off. I found myself having 'aha' moments about why innovation at the companies I've worked at is such a challenge. It also led me to think about why Google's seemingly chaotic strategy might just work and to build my own understanding about why services like YouTube and Skype are hard to predict but huge when they happen.

Readers interested in economics see that complexity theory provides the economics profession with a way of explaining the economy without requiring theoretical modelling assumptions that don't reflect reality. I studied economics at Cambridge University several years ago and finally can see an economic theory that more closely reflects the whole story.

And for those interested in politics, Eric Beinhocker shows why Left and Right ultimately is not the best theoretical foundation for explaining how to improve things. Complexity theory provides politicians with a framework that starts with cooperation (Left) and competition (Right) co-existing and builds its policies with both present.

One final prediction: this book will continue to grow in popularity. The world is complex. This book thoroughly stimulates the mind.

As relevant today as in 1958, 29 Jun 2008
Galbraith's classic economics text has been influential, but not quite influential enough - in a world of unsustainable consumption and runaway debt, we really need some of the ideas in this book.

The central idea here is that the production model of the economy is fatally flawed. It is based, Galbraith believed, on a good idea that was no longer relevant. For lifting the US out of poverty and meeting people's needs, it had worked well. Now that people were affluent and their urgent needs were all met, it was foolishness. People aren't happy, they work too hard, there is still great inequality, and there is a growing rather than shrinking income gap between rich and poor. "In recent times" he writes, "no problem has been more puzzling to thoughtful people than why, in a troubled world, we make such poor use of our affluence." If he could say that in 1958, how much more so now.

The growth model served its purpose, but the focus needs to be turned back towards equality, and towards wellbeing. The Affluent Society remains highly relevant today. In Galbraith's own words:

"To furnish a barren room is one thing. To continue to crowd in furniture until the foundation buckles is quite another. To have failed to solve the problem of producing goods would have been to continue man in his oldest and most grievous misfortune. But to fail to see that we have solved it and fail to proceed hence to the next task would be fully as tragic."

Lucid and original, 22 Jan 2007
This book is a pleasure to read, is crammed with original ideas and accessible explanations and offers a comprehensive insight into the economic landscape which simply makes a lot of sense. It is a particular joy that Galbraith does not stop at the traditional limits of economic discourse -- whenever he needs to stray into a related subject in order to construct a complete and persuasive explanation then he does so competently and without hesitation.

However, I would also like to mention the relationship between this book and "The New Industrial State" (NIS) which Galbraith wrote some years later. The NIS clearly covers much the same ground, whilst incorporating the further development and refinement of Galbraith's thoughts over the following decade. As a result, the NIS has a broader scope and offers a more complete picture of a modern (as of 1970ish) industrial economy -- but is also a little less accessible and undoubtedly a "heavier" read. If you have read and enjoyed "The Affluent Society", then the NIS would be an excellent next step, in which the ideas presented here are refined and expanded, but "The Affluent Society" is a great place to start.

galbraith,brilliant economist/philosopher/social thinker, 01 Jun 2005
i have read all works by the leading economists,past and present(i studied economics&politics),and i can say galbraith is in a league on his own.having read all his works i can say that he is consistent in his assertions about market capitilism.
in the affluent society he forsees the rise of the consumer society.he shows the freemarket system is imperfect.he explains why governments are important,he shows how the military is the third force.he explains the concept of conventional wisdom...and so on.
if you want an antidote to milton friedman(the free market nutcase)then galbraith is it.read the affluent society and ponder

The one book that gets economics just right, 22 Feb 2005
There hasn't been enough structure in the arguments against free-market economics recently and we are in serious need for some. Therefore, people like myself have to settle on books like this one; and what a gem it is.

Galbraith is an economist who is untouchable in his field of work and it shows in the Affluent Society. A stunningly written piece, full of intelligent answers to questions others daren't ask. What makes his work stand out is how he makes it relevent to every aspect of society and many famous economists of the past and present.

Any right-wingers or neo-liberals who dare to bad mouth Galbraith better read this book first and come up with some good answers as to why they disagree. I have read work from all positions of the economic spectrum and still havent found a single person that can outdo Galbraith and theres not a better example of his genius than here.

His work is also very accessible to even the most novice on the subject and theres not one boring page in the book. If you are a libertarian socialist looking for answers, don't get bogged down in Marx's Capital, go for this book, or at least start with it.

A well written thought provocking economics handbook., 28 Jul 2001
The affluent society is a well written critique of established economic ideas by a brilliant writer. The book written in a clear and simple language is both insightful and thought provocking.

The author started by critically appraising established economic ideas which he called "conventional wisdom". He went on to discuss the inherent flaws in accepting production as the most important goal of society. He then examined the concept of want creation, the ever inceasing problem of consumer debt, economic security, economic inequality and poverty.

The main reason why i enjoyed the book it its language and message. I have never had the priviledge of reading a better written economics book. This is a book for all. Whether you an expert, a student or someone interested in the progress of his society, you will find this book interesting and worth the effort.

Finally, the concluding remark by the author is a message i strongly identify with. He called on society to make it its goal the eradication of poverty and to control the production of weapons of mass destruction. As someone who resides in a developing country, where affluence exist side by side with extreme poverty, the goal of eradicating poverty is one which i fervently hope the leadership of my country will adopt.

Not only THE economics text..., 22 Jun 2007
This book provided the foundation for most economic policy (in the west at least) through the middle of the 20th century, and as such must be considered among the most important books ever published. It will show the reader why certain decisions were taken, and how we got to where we are. Even if you don't agree with Keynes' theories this is an indispensable guide for anyone who wants to understand government economic policy.

Beyond his importance as an economist however, Keynes was a member of the Bloomsbury group of artists and Bohemians, and that is reflected in his writing. This is no novel, but there are few better written economic texts.

In the long-run, we are all dead so read this book, 11 Jun 2004
This book, by the farther of modern macroeconomics, is one of the most influential economic texts to date. Not only did it form the basis of the post-war consensus, in the UK, but also in Europe and Northern America.

This book, however, is worth a read in its own right. This will enable anyone to understand the budget with much more ease. Also if anyone is doing a course in Economics or Political Economy, it comes highly recommended.

The Bible of Economics, 07 May 2004
It is on this book that all subsequent economic has either been based, or has been compared to.
As a student of economics, this book is a MUST read, fully explaining the theories of Aggregate Demand and it's effects (which Classical economists will tend to ignore) and how to influence this through the AD equation.
For the average reader, this book will explain much of the world around you, and will make budget speeches make much more sense.
All together, possibly one of the most important economic books of all time, still pertinent and holding still truer as the current gov't holds a Keynesian course on the economy whilst it flourishes.

The best piece of Economic literature of all time, 31 Jan 2002
Although this book is slightly aged after the abolition of hereditary peers and devolution for Scotland and Wales, it is still worth reading for it's excellent and comprehensive critique of New Right Policy. The book starts with how the Conservatives fused Neo liberal thought with popular policies, creating an electoral machine which won four general elections in a row. It talks about how the Conservatives managed to manipulate the uncodified British constitution to great effect during the 1930's and 1940's.

It simultaneously charts the crisis among the British Left, and the European Left in general, and how the New Labour experiment attempted to deal with this. The main thrust of the book is that the last twenty odd years have been an experiment in free market economics which have had serious effects on social cohesion, and given us the lowest paid workforce, yet the highest paid executives in Europe.

The basis of modern economic debate, 02 May 1999
While I tend towards the opposing view of Classical economics, Keynesian economics cannot easily be argued away. Keynes' theories are the foundation of our present Federal Reserve system and remain the basis for much of modern economic thought. Definitely a must-read for any aspiring economist.

A useful crash course on Adam Smith's discourse, 22 Sep 2008
I can only describe this particular edition of Wealth of Nations as a useful crash course on Adam Smith's discourse, mindful of the fact that there were five editions of this historically significant work. But then that's the beauty of this condensed compendium.

Most editions available in the market draw on Smith's Wealth of Nation Volume I (Of the causes of improvement), Volume II (Of the Nature, Accumulation, and Employment of Stock) and Volume III (Of the different Progress of Opulence in different Nations) at the most. However, this edition contains healthy inclusions from Book IV (Of Systems of political Economy) and Book V (Of the Revenue of the Sovereign or Commonwealth). For this alone, the editor Kathryn Sutherland deserves credit.

It is not a mouthful but a practical handy book on Wealth of Nations. Those who have never studied economics would enjoy reading it too if they are so inclined, especially students of history and philosophy. Since this is a complex work authored over two hundred years ago, the editor's footnotes and references enhance comprehension.

Yet the wonderful details of Smith's key thoughts have not been stifled in any way - working of the markets, division of labour, general prosperity, government and taxation are all there. In essence, Wealth of Nations remains a true classic and I found this edition of it to be an easy and enjoyable read. Overall, its a handy reference book to have on your bookshelf.

where many things began, 16 May 2003
I loved this book, not for it's economic content but for it's wonderfully overarching principles and view of history, philosophy and economics. I have never studied economics in any way and read this book purely on it's historical importants, and yet I found it facinating. I would not say this is the book for anyone wanting to understand the complexeties of the modern ecomemy, interest rates, futures markets or whatever, but for those who whant a very complete and well thought out examination of how the human world is put together this work cannot be faulted.

Though it was writeen over 2 centuries ago this edition makes perfect sence of the text without changing it, it's almost 200 pages of footnotes provide innumerate refrences to interesting asspects of history and sociaology meaning that that you never have to go and look things up anywhere else, whilst the decision to mix smits own spellings and spellings and inconsistancies with a more modern english gives the book an atmosphere when reading it of what the authour really meant.

It's use today is primerilly one of historical importance, his analesis of tax collection for example bares hardly any relation to modern tax systems, or at least those in the weastern world, but wht it does do is represent a model of the world on which it is very easy to hang modern principles and situations, havingt read this book you realise just how integrated things can be, and how things have evolved.

Smith explains all this in wonderful deatail with many examples and explanations which mean that though his ideas may seem confusing the dedicated reader should not get to confused, and at the end I was very much left with the impression that it had all been worth it.

a real gem

Money comes second:Smith was a enlightened moral philosopher, 05 Aug 2000
Adam Smith (Professor of Moral Philosophy at Glasgow) had previously written 'The Moral Theory of Sentiments' and had probably intended to write a third (spiritual) overarching work. He died. The accute analyses he finished have flaws as well as much merit. His works are in the first division of merit. To consider him only as an economist (he was the first) is to think of life partially. Wealth of Nations (hasn't Porter essentially copied the economics) is a broader attempt to understand the relationships between money and people.

I come here by accident, but don't many

Angus

Oh, How much we owe Smith!, 20 Jul 1999
I must take exception to the Amazon review: saying that Smith viewed Capitalism suspiciously is utterly untenable. From the very first chapter, Smith makes clear the genius of markets, the benefits of the division of labor, and how government intrusion upon "perfect liberty" creates economic inefficiencies. As the Industrial Revolution was in its infancy, Smith keenly perceived the theoretical framework for its future development: property rights, markets, free trade, and government non-intervention. These institutions allowed for unprecedented economic growth (there was more economic growth in the 19th century than in the preceeding 4000 years) and thus the sustainability of modern life. We cannot express enough gratitude to Dr. Smith.

The Great Work of a Great Mind., 10 Jun 1999
Although this book is hailed as one of the greatest works in Economics ever and set the foundations for contemporary Economic thought, the Wealth of Nations is not a good read. It is extremely difficult to digest and requires extreme concentration. Few would read the book unless required in an Economics course or the like. Smith was undoubtedly a genius - way ahead of his time. However, the reader must have as great an intellect to fully comprehend what Smith is writing. Perhaps "user-friendly" books were not the fashion of the times.

Tim does it again!, 21 May 2008
Tim Harford has again managed to write a book on Economics that I read in a weekend (well Thursday to Saturday, but weekends are stretchy!). Give that I've tried and failed to finish the Black Swan and wasn't really all that impressed with Freakonomics that's a pretty big recommendation.

In this book Harford dwells more on how cities can be more amenable to live in, rational prostitutes and race and sex roles. You can tell he's started a family since the last book as a lot of the topics focus on 'quality of life' issues.

Again underlying the book is that we make rational choices within our limitations and that we respond to incentives with surprising deftness. Other reviewers have been quite critical of this thesis but Harford defends it really well. He explains why if I go to a playgroup with my son why I'm likely to be one of the only men there, why cities end up segregated because of relatively mild preferences and why it's rational under certain circumstance for a prostitute not to use a condom (no really!).

I really enjoy these books, it's just a shame he doesn't write for the Independent (as I'd get to read his weekly column).

Dr Pangloss rides again, 05 May 2008
Hmmm... The whole edifice of classical economics is baed on the premise that individuals will always make rational choices based on their self-interest, to the ultimate benefit of society as a whole. Of course, anyone who takes the odd glance outside the study at the real world will be a bit nonplussed by this contention, because it appears as if many people make rather irrational choices, with some difficult implications for a theory that assumes the optimum allocation of resources.

It's the kind of 'heads I win, tails you lose' defence of market fundamentalism that looks increasinlgy threadbare in the post-LTCM, sub-prime world of market failure, as central bankers desperately try to shore up the capital markets in the wake of an excess of rationality. However, if you can show that all those 'irrational' choices are, in fact, perfectly rational, then the edifice survives intact and there is no need for reform - all is for the best in the best of possible worlds.

Dissaponting, but makes a good door stopper, 01 May 2008
I have not read The Undercover Economist, and I certainly don't plan to after I've read this book, that is if it's as bland and obvious as the logic of life. I stuck with the book after 150pages then put it down feeling disappointed and conned after reading some of the reviews. I imagined that I'd be intellectually inspired or intrigued by some of the theories Harford postulates. Ocassionally, i let out a tiny grubble at some mildly interesting anecdotes. Overall, a book wholly committed to rationalising pretty much everything is fraile with limited attributes.
Boring !!


Math Applied to Common Decisions, 23 Apr 2008
Many of the popular books about economics seek to convince you that human beings are wildly illogical. Why? Because the dollars and sense of what people say and do don't always match up well. Tim Harford gets past that problem by mostly ignoring the academic studies that seem far removed from reality by emphasizing what people do when they are new to something.

The book is at its best when he's explaining how systemic biases can create large shifts in human behavior. For instance, a slight preference for having neighbors who are like oneself can lead to quite substantial segregation along race, religion, education, and economic lines.

For me, the book lacked any big "gotcha" like the finding that abortions may have contributed to lowering crime.

In almost every section, I thought that Mr. Harford was arguing (or at least haranguing) beyond the limits of his evidence.

When he moves beyond being an observer into someone trying to convince you what people are like, I found he was often offensive. There's a section about how those who aren't native to Africa "solved" the problem of dying from malaria by transferring slaves from Africa to milder climates that's insensitive at best.

To Mr. Harford's eye, we are so much creatures of economics, comfort, and the pursuit of gain that there's no role for any other human motives. That's a too limited view of people . . . and hardly an uplifting one.

Unless you are addicted to Mr. Harford's writing, skip this book. It won't tell you much that you need to know.

Math Applied to Common Decisions, 23 Apr 2008
Many of the popular books about economics seek to convince you that human beings are wildly illogical. Why? Because the dollars and sense of what people say and do don't always match up well. Tim Harford gets past that problem by mostly ignoring the academic studies that seem far removed from reality by emphasizing what people do when they are new to something.

The book is at its best when he's explaining how systemic biases can create large shifts in human behavior. For instance, a slight preference for having neighbors who are like oneself can lead to quite substantial segregation along race, religion, education, and economic lines.

For me, the book lacked any big "gotcha" like the finding that abortions may have contributed to lowering crime.

In almost every section, I thought that Mr. Harford was arguing (or at least haranguing) beyond the limits of his evidence.

When he moves beyond being an observer into someone trying to convince you what people are like, I found he was often offensive. There's a section about how those who aren't native to Africa "solved" the problem of dying from malaria by transferring slaves from Africa to milder climates that's insensitive at best.

To Mr. Harford's eye, we are so much creatures of economics, comfort, and the pursuit of gain that there's no role for any other human motives. That's a too limited view of people . . . and hardly an uplifting one.

Unless you are addicted to Mr. Harford's writing, skip this book. It won't tell you much that you need to know.

Economics is not seventeenth century physics, 21 Nov 2008
As someone who is deeply interested in underlying ideas particularly philosophy - including the philosophy of science - I found this book interesting. Having obtained 'A' levels in chemistry, mathematics and physics, I opted to read for a degree in mechanical engineering. This necessitated studying a number of subjects most of which were effectively branches of mathematics and physics. I reviewed the book "Engineering Mathematics" by Stroud on this site but I studied much more mathematics than found in that book in my second and third years. I spent a considerable amount of my time learning how to solve advanced differential equations.

When I left university, I joined an accountancy firm and as mentioned under my review of the book "Economics" by Lipsey, I slogged my way through "Positive Economics". I remember about 25 years ago saying to the economics lecturer in the canteen that much of economics that we were doing reminded me (conceptually) of some of my engineering problems in e.g. statics and fluid m