Who was the greater economist--Adam Smith or Charles Darwin? The
question seems absurd. Darwin, after all, was a naturalist, not an
economist. But Robert Frank, "New York Times" economics columnist
and best-selling author of "The Economic Naturalist," predicts that
within the next century Darwin will unseat Smith as the
intellectual founder of economics. The reason, Frank argues, is
that Darwin's understanding of competition describes economic
reality far more accurately than Smith's. And the consequences of
this fact are profound. Indeed, the failure to recognize that we
live in Darwin's world rather than Smith's is putting us all at
risk by preventing us from seeing that competition alone will not
solve our problems.
Smith's theory of the invisible hand, which says that
competition channels self-interest for the common good, is probably
the most widely cited argument today in favor of unbridled
competition--and against regulation, taxation, and even government
itself. But what if Smith's idea was almost an exception to the
general rule of competition? That's what Frank argues, resting his
case on Darwin's insight that individual and group interests often
diverge sharply. Far from creating a perfect world, economic
competition often leads to "arms races," encouraging behaviors that
not only cause enormous harm to the group but also provide no
lasting advantages for individuals, since any gains tend to be
relative and mutually offsetting.
The good news is that we have the ability to tame the Darwin
economy. The best solution is not to prohibit harmful behaviors but
to tax them. By doing so, we could make the economic pie larger,
eliminate government debt, and provide better public services, all
without requiring painful sacrifices from anyone. That's a bold
claim, Frank concedes, but it follows directly from logic and
evidence that most people already accept.
In a new afterword, Frank further explores how the themes of
inequality and competition are driving today's public debate on how
much government we need.
General
Imprint: |
Princeton University Press
|
Country of origin: |
United States |
Release date: |
September 2012 |
First published: |
2013 |
Authors: |
Robert H Frank
|
Dimensions: |
216 x 140 x 20mm (L x W x T) |
Format: |
Paperback - Trade
|
Pages: |
246 |
Edition: |
Revised edition |
ISBN-13: |
978-0-691-15668-2 |
Categories: |
Books >
Business & Economics >
Economics >
Economic theory & philosophy
|
LSN: |
0-691-15668-9 |
Barcode: |
9780691156682 |
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