Category: Books

Greenspan “Implemented a Successful Rule-Based Monetary Policy”

(p. C12) Effective public policy requires getting good ideas and putting them into practice. There is no better account of the world where economic ideas emerge as economic policy than Sebastian Mallaby’s thoroughly researched (there are 1,625 endnotes) “The Man Who Knew,” which takes up Alan Greenspan’s long career. Mr. Greenspan knew the ideas, Mr. Mallaby first argues, and then tells story after story of how the economist worked them into policy in Washington. Mr. Greenspan approved President Ford’s questionable stimulus package in order to implement ideas on spending control; he skillfully drove reform ideas as chair of the Social Security commission; he implemented a successful rule-based monetary policy at the Fed with careful data analysis for many years, but ran into difficulties when the data gave mixed messages toward the end of his term.

For Taylor’s full book recommendations, see:
John Taylor. “12 Months of Reading.” The Wall Street Journal (Sat., December 10, 2016): C12.
(Note: the online version of the review has the date Dec. 7, 2016, and has the title “John Taylor on Alan Greenspan.”)

The book recommended, is:
Mallaby, Sebastian. The Man Who Knew: The Life and Times of Alan Greenspan. New York: Penguin Press, 2016.

Jane Jacobs Studied the “Mess of Everyday Life”

(p. C6) The decidedly unpredictable and unscientific mess of everyday life was the passion of the urban theorist Jane Jacobs. For her, studying the street and the city was the key to understanding how things work. Robert Kanigel’s “Eyes on the Street: The Life of Jane Jacobs” has taken a place on my bookshelf right next to Robert Caro’s landmark biography of her nemesis, Robert Moses.

For Bierut’s full book recommendations, see:
Michael Bierut. “12 Months of Reading.” The Wall Street Journal (Sat., December 10, 2016): C6.
(Note: the online version of the review has the date Dec. 7, 2016, and has the title “Michael Bierut on Jane Jacobs.”)

The book recommended, is:
Kanigel, Robert. Eyes on the Street: The Life of Jane Jacobs. New York: Alfred A. Knopf, 2016.

Not All Secure Jobs Are Good Jobs

(p. C8) The village idiot of the shtetl of Frampol was given the job of waiting at the village gates for the arrival of the Messiah. The pay wasn’t great, he was told, but the work was steady.

For Epstein’s book recommendations, see:
Joseph Epstein. “12 Months of Reading.” The Wall Street Journal (Sat., December 10, 2016): C8.
(Note: the online version of the review has the date Dec. 7, 2016, and has the title “Books of The Times; Review: ‘A Truck Full of Money’ and a Thirst to Put It to Good Use.”)

Best Entrepreneurs, and Managers, Help Workers Lead Meaningful Lives

(p. C6) In “Payoff,” Dan Ariely makes the strong case that the best way to motivate people, including ourselves, is not through persuasive tactics, however subtle, but by providing the groundwork for meaning in people’s lives.

For Altucher’s full book recommendations, see:
James Altucher. “12 Months of Reading.” The Wall Street Journal (Sat., December 10, 2016): C6.
(Note: the online version of the review has the date Dec. 7, 2016, and has the title “James Altucher on con artists.”)

The book recommended, is:
Ariely, Dan. Payoff: The Hidden Logic That Shapes Our Motivations, Ted Books. New York: Simon & Schuster, Inc., 2016.

Most Novels Portray Businessmen as Either Foolish or Evil

(p. 8) The last book that made you furious?
Al Gore’s “An Inconvenient Truth.” It uses all the tricks of a fire-and-brimstone preacher to sell a message of despair and pessimism based on a really shaky, selective and biased understanding of the science of climate change.

Your favorite antihero or villain?
Harry Potter’s uncle, Vernon Dursley — a much misunderstood man who stands for all the businessmen that novelists have denigrated, while living off the wealth they created. I am being a bit facetious, but I did use to enjoy pointing out to my children that businessmen only ever appear in fiction as foolish or evil or both, when clearly they generally do the world enormous good.

If you could require the president to read one book, what would it be?
The prime minister? “The Hockey Stick Illusion,” by Andrew Montford. It’s a great piece of detective work on a key scientific blunder, based around the work of Steve McIntyre and Ross McKitrick, and it forensically dismantles the mistakes that led to people believing they had at last found evidence that current climate change is unprecedented in rate or scale in this millennium. It may yet prove to be so in the future, but it is not so yet.

Disappointing, overrated, just not good: What book did you feel you were supposed to like, and didn’t?
Easy. The Bible. Not even the fine translations of William Tyndale, largely adopted by King James’s committee without sufficient acknowledgment, can conceal the grim tedium of this messy compilation of second-rate tribal legends and outrageous bigotry.

For the full interview, see:
SIMON PARKIN. “By the Book: Matt Ridley.” The New York Times Book Review (Sun., OCT. 18, 2015): 8.
(Note: the online version of the interview has the date OCT. 15, 2015, and has the title “Matt Ridley: By the Book.” The online version has added questions and answers, that were left out of the published version. The passages quoted above, were in both versions, except for those on recommended presidential reading, which only appeared in the online version.)

Ridley has a courageous and illuminating discussion of environmental issues, in:
Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.

Video Gamers Become “More Optimistic, Creative, Courageous and Determined”

(p. 10) The principles of game design, McGonigal argues, can be used to turn not only leisure into productivity, but also sickness into health. By reframing recuperative tasks such as going for a walk, reconnecting with a friend or writing a short story as gamelike quests, healing can be systematized. Moreover, when you begin to tackle these life quests (McGonigal provides nearly 100 examples) you will, she writes, enter a “gameful” state, becoming more optimistic, creative, courageous and determined. By applying the psychological attributes that games unlock to real-world scenarios, we become like Mario as he guzzles a power-up and transforms into Super Mario.
McGonigal’s promises come thick and early, propped up by the results of two clinical studies. The 30-day program contained in the book will, she writes, “significantly” reduce symptoms of depression and anxiety and decrease suffering. It will increase optimism, make you “more satisfied” and even lead, incredibly, to a life “free of regret.” McGonigal claims that every day for more than five years she has heard from someone telling her that the program changed his or her life.

For the full review, see:
SIMON PARKIN. “Taking Games Seriously.” The New York Times Book Review (Sun., OCT. 12, 2015): 10.
(Note: the online version of the review has the date OCT. 12 [sic], 2015, and has the title “‘SuperBetter’ and ‘The State of Play’.”)

The book under review, is:
McGonigal, Jane. Superbetter: A Revolutionary Approach to Getting Stronger, Happier, Braver and More Resilient–Powered by the Science of Games. New York: Penguin Press, 2015.

Blockchain Can Cut Out Financial Middlemen

(p. A9) Blockchains are basically a much better way of managing information. They are distributed ledgers, run on multiple computers all over the world, for recording transactions in a way that is fast, limitless, secure and transparent. There is no central database overseen by a single institution responsible for auditing and recording what goes on. If you and I were to engage in a transaction, it would be executed, settled and recorded on the blockchain and evident for all to see, yet encrypted so as to be villain-proof. “The new platform enables a reconciliation of digital records regarding just about everything in real time,” write the Tapscotts. No more waiting for that check to clear. It would all be done and recorded for eternity before you know it.
The digital currency bitcoin is currently the best-known blockchain technology. If I wanted to pay you using bitcoin, I would start with a bitcoin wallet on my computer or phone and buy bitcoins using dollars. I would then send you a message identifying the bitcoin I would like to send you and sign the transaction using a private key. The heavily encrypted reassignment of the bitcoin to your wallet is recorded and verified in the bitcoin ledger for all to see, and they are now yours to spend. The transaction is likely more secure and cheaper than a traditional bank transfer.
. . .
The layman, . . . , might want to wait for a more penetrable explanation of blockchains to come along–as one surely will if the authors’ predictions are even one-zillionth right.​

For the full review, see:
PHILIP DELVES BROUGHTON. “BOOKSHELF; Bitcoin Is Just The Beginning; Imagine a personal-identity service that gives us control over selling our personal data. Right now, Google and Facebook reap the profit.” The Wall Street Journal (Fri., May 27, 2016): A9.
(Note: ellipses added.)
(Note: the online version of the review has the date May 26, 2016.)

The book under review, is:
Tapscott, Don, and Alex Tapscott. Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World. New York: Portfolio, 2016.

Dignity and Equality Before the Law Unleashes Creativity in the Poor

(p. A23) We can improve the conditions of the working class. Raising low productivity by enabling human creativity is what has mainly worked. By contrast, taking from the rich and giving to the poor helps only a little — and anyway expropriation is a one-time trick.
. . .
Look at the astonishing improvements in China since 1978 and in India since 1991. Between them, the countries are home to about four out of every 10 humans. Even in the United States, real wages have continued to grow — if slowly — in recent decades, contrary to what you might have heard. Donald Boudreaux, an economist at George Mason University, and others who have looked beyond the superficial have shown that real wages are continuing to rise, thanks largely to major improvements in the quality of goods and services, and to nonwage benefits. Real purchasing power is double what it was in the fondly remembered 1950s — when many American children went to bed hungry.
What, then, caused this Great Enrichment?
Not exploitation of the poor, not investment, not existing institutions, but a mere idea, which the philosopher and economist Adam Smith called “the liberal plan of equality, liberty and justice.” In a word, it was liberalism, in the free-market European sense. Give masses of ordinary people equality before the law and equality of social dignity, and leave them alone, and it turns out that they become extraordinarily creative and energetic.

For the full commentary, see:
DEIRDRE N. McCLOSKEY. “Economic View; Equality, Liberty, Justice and Wealth.” The New York Times, SundayBusiness Section (Sun., SEPT. 4, 2016): 6.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date SEPT. 2, 2016, and has the title “Economic View; The Formula for a Richer World? Equality, Liberty, Justice.”)

McCloskey’s commentary, quoted above, is related to her book:
McCloskey, Deirdre N. Bourgeois Equality: How Ideas, Not Capital, Transformed the World. Chicago: University of Chicago Press, 2016.

Intellectuals Embrace Despair

(p. A23) Public conversation is dominated by people’s ahistorical insistence that this country is sliding toward decline. As Arthur Herman writes in his book “The Idea of Decline in Western History,” “The sowing of despair and self-doubt has become so pervasive that we accept it as a normal intellectual stance — even when it is directly contradicted by our own reality.”

For the full commentary, see:
Brooks, David. “The Age of Reaction.” The New York Times (Tues., SEPT. 27, 2016): A23.

The book quoted in the above passage from the Brooks commentary, is:
Herman, Arthur. The Idea of Decline in Western History. New York: Free Press, 1997.

Do Manic Spells Help or Hurt Entrepreneurial Boldness?

(p. C1) In an author’s note, Mr. Kidder explains that “A Truck Full of Money” is a kind of sequel to “The Soul of a New Machine” (1981), his Pulitzer Prize-winner about the race to build a next-generation minicomputer. Fair enough: The writer is returning to his roots.
But a book about a software guy and software culture in 2016 isn’t nearly as novel as a book about hardware guys and hardware culture in 1981, and Mr. Kidder is not in the same command of his material.
. . .
(p. C4) There is, however, an element of Mr. English’s story that’s quite striking, one that makes “A Truck Full of Money” feel very much like a Tracy Kidder book.
In his 20s, Mr. English was told he had bipolar disorder. For a long time, he kept his diagnosis a secret. But today, he is wonderfully open and courageous about it.
Many of Mr. Kidder’s subjects are coiled with enough energy to launch a missile, of course, but Mr. English has a psychiatric diagnosis to go with it. The questions Mr. Kidder raises — Are Mr. English’s manic spells responsible for his entrepreneurial boldness? Or does he succeed in spite of them? — are well worth probing, and Mr. Kidder’s portrayal of living with manic depression is as nuanced and intimate as a reader might ever expect to get. On a good day, Mr. English’s mind is gaily swarming with bumblebees. On a bad one, though, he’s “Gulliver imprisoned by the tiny Lilliputians, laid out on his back, tied to the ground with a web of tiny ropes.”
Many of the features of Mr. English’s biography fit a familiar pattern. He was a low-achieving student with a high-watt intelligence. He discovered computer programming in middle school and was instantly smitten; today, he thinks fluently in layers of code — “each hanging from the one above, like a Calder mobile” — and his brain is a regular popcorn maker of ideas.
. . .
When he’s “on fire” (his term), he grows irritable with the slow dial-up connection of other people’s brains. He exaggerates. He slurs his words. His ideas range from extremely creative to flat-out wackadoo.
. . .
Over the years, Mr. English has tried a Lazy Susan of medications to subdue his highs and avert his lows. Many left him feeling listless and without affect. Being bipolar meant constantly weighing the merits of instability versus a denatured, drained sense of self.

For the full review, see:
JENNIFER SENIOR. “Books of The Times; The Road from Mania to Wealth and Altruism.” The New York Times (Tues., SEPT. 13, 2016): C1 & C4.
(Note: ellipses added.)
(Note: the online version of the review has the date SEPT. 12, 2016, and has the title “Books of The Times; Review: ‘A Truck Full of Money’ and a Thirst to Put It to Good Use.”)

The book under review, is:
Kidder, Tracy. A Truck Full of Money: One Man’s Quest to Recover from Great Success. New York: Random House, 2016.

Kidder’s wonderful early book, is:
Kidder, Tracy. The Soul of a New Machine. 1st ed. Boston: Little, Brown and Co., 1981.