A Little History of Economics (Little Histories)

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A lively, inviting account of the history of economics, told through events from ancient to modern times and the ideas of great thinkers in the field

Solid state physics Quantum theory Chemical bonds SCIENCE Physics Condensed Matter Física do estado sólido Mecânica quântica This book is primarily about economic ideas, especially as related to the economic life and policies of their times. Often, this historical context promotes greater appreciation of old ideas that otherwise might be dismissed lightly. Conversely, when an economist published predictions, Kishtainy may remind readers of subsequent history; some economists, say, Malthus, don’t fare so well by this measure. However, Kishtainy is not heavy handed, and tends to leave criticism implicit. This book spends about 20% of it's time on economics theories before the 1800's and follows that with 7.5 hours of explaining economists from the industrial age and their theories. But Kishtainy does not begin with Riccardo or his more famous contemporary, Adam Smith—‘the father of modern economics’. Instead, he starts much earlier. Taking readers into the heart of ancient Greece, Kishtainy places the origins of economic thought on the shoulders of the ancient Greek philosophers, whom he calls the world’s ‘first economic thinkers’ (7). Plato envisioned a world where no one owned property or pursued wealth. Aristotle argued for the even and honest exchange of goods. Both warned against the love of money. What causes poverty? Are economic crises inevitable under capitalism? Is government intervention in an economy a helpful approach or a disastrous idea? The answers to such basic economic questions matter to everyone, yet the unfamiliar jargon and math of economics can seem daunting. This clear, accessible, and even humorous book is ideal for young readers new to economics and for all readers who seek a better understanding of the full sweep of economic history and ideas. Economic historian Niall Kishtainy organizes short, chronological chapters that center on big ideas and events. He recounts the contributions of key thinkers including Adam Smith, David Ricardo, Karl Marx, John Maynard Keynes, and others, while examining topics ranging from the invention of money and the rise of agrarianism to the Great Depression, entrepreneurship, environmental destruction, inequality, and behavioral economics. The result is a uniquely enjoyable volume that succeeds in illuminating the economic ideas and forces that shape our worldThe book is chronological, from early Greek philosophers to twenty-first century economic psychologists, inequality researchers, and others, who are clearly different from the mid-twentieth century mainstream. Overall, Kishtainy gives significant attention to economic thinkers who were outside the consensus of their time. In England, economists such as Thomas Mun began thinking about how their country could become richer than its rivals. He believed that what was good for merchants was good for the nation. Countries set up special companies allowing investors to pool their money and share in the profits, like the East India Company, in which Mun was an official. In these blinks, we’ll learn the history of the field, from the ancient Greeks to the cowboy (and girl) bankers who triggered the global financial collapse of 2007. Perhaps by considering how earlier economists sought to explain their own times, we can see our own more clearly. The author tries hard to not make this book a "Capitalism is the greatest and most perfect system in the history of mankind without any flaws." But saying that, he is not perfect and definitely fails to meet the goal of being perfectly impartial. If you want a book that is a history the different ways economists have understood markets and capitalism over the last 250 years, then this book is for you. There are a few detours here and there away from Capitalism, but capitalism makes up about 75% of this book.

This book is an intellectual treasure trove for anyone interested in history, big ideas, and the role that economic thinking has played in both for more than 2000 years."—Charles Wheelan, author of Naked Economics The first time Krishtainy mentions a female economist—Joan Robinson—he introduces her as ‘a Cambridge professor’s wife’ (85). Though he aims to convey Robinson’s ‘outsider’ status as a woman in economics in the early twentieth century (85), such language perpetuates this position and undermines her contribution to the canon of economic thought.

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This book is an intellectual treasure trove for anyone interested in history, big ideas, and the role that economic thinking has played in both for more than 2000 years."—Charles Wheelan, author of Naked Economics

Kishtainy is rather balanced and unbiased in his history, presenting the ideas of key figures like Keynes and Friedman while showing opposing points of view or theories to demonstrate how complex the field is and how many different ways there are of understanding economics. Some figures he covers are really neat, like the Indian economist-philosopher Amartya Sen, who started looking at different ways to be poor or wealthy than traditional money/food ones, focused on “capabilities” rather than on mere freedoms, and also cast a light on gender inequality. He also employs an array of useful analogies and metaphors to explain various interpretations of the economy. For example, to understand John Maynard Keynes, remember that he rejected the idea that economies are like ‘round-bottomed roly-poly toys’ that, when pushed over, self-correct (108). To describe the limits of Say’s Law of Markets, think of a bathtub: the water level indicates spending, and savings are water leaking down the drain (106). Aristotle’s grumbling didn’t have much of an impact on the development of an economy, though. Commerce, once it had begun, was here to stay.

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In the early twentieth century, the Russian revolutionary Vladimir Lenin put Marx’s ideas into practice. He and other economists hypothesized that imperialism, the European practice of taking over foreign territories for profit, had propped up capitalism longer than its natural life cycle. When Lenin overthrew Tsarist Russia in 1917, he set up the world’s first communist state: the Soviet Union, also known as the USSR. It would be, Lenin proclaimed, the enemy of imperialism. Those who refuse to learn from the past are doomed to repeat it. Economics can help guide policy in a sensible direction; but the misuse of economics has also left individuals, companies, and countries in ruin.To understand what economics has got right—and to avoid repeating its mistakes—read this book."—Simon Johnson, Professor at MIT Sloan and author of 13 Bankers

But when we write history books and do not include alternative voices, we perpetuate their exclusion. We may argue such voices are rare or difficult to find, but by failing to include them, we make it even more difficult for the next generation of readers and thinkers to find them. This is a serious concern, especially as men’s voices continue to dominate economics today. I would highly recommend this book to people interested in the topic but also to all university students whichever their field as economics study all of our economic relationships. The first two of these elements are standard in textbooks (i.e., scarcity, positive/normative); and they are stated here in an unexceptional way. The third element (capitalist/non-capitalist economies) reflects Kishtainy’s selection of topics, apparently with an eye to giving pre-capitalist and non-capitalist thought its due. The fourth element (critical eyes) is good advice for readers of economics. (Economists, however, tend to have critical eyes only for the work of other economists.) There is, however, a significant oversight in the book: Kishtainy focuses almost exclusively on the contributions of white, western men. Shouldn’t a history of economics—however ‘little’—include reference to the economic ideas that developed in ancient China and India? The Arthashastra, for instance, was an ancient Indian text that informed economic policy in the empires of South Asia for centuries. Or what about Islamic economics, which flourished as early as the eighth century and still influences much of the banking world today? A lively, inviting account of the history of economics, told through events from ancient to modern times and through the ideas of great thinkers in the fieldAt the outset, Kishtainy announces key elements of his own understanding of economics. First, he says, is an emphasis on scarcity, and the corollary need to make choices. Second, is the positive-normative distinction, (overly) simplified by quoting Alfred Marshall that economists need “cool heads but warm hearts.” Third is the distinction between capitalist and traditional economies, while noting that the predominant focus of modern economics has been on capitalist markets. Fourth, he writes, that to Marshall’s “head and heart” must be added self-critical eyes. That is, readers of economics should be alert to cultural or class biases in economics. You might think you know what economics is about. Input-output, supply and demand, etcetera, etcetera. In a way, you’d be right. The word economics comes from the ancient Greek – oikos for house, and nomos for law. For the Greeks, economics was about managing households. A whistle-stop introduction to the great works and thinkers of each age, this is a clear and accessible primer."--Laura Garmeson, Financial Times