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Summary of Good Economics for Hard Times 

4.6 . 3627 reviews

Short summary

At a time when economic policies are failing, and ideologies are blinding us from seeing what’s right in front of us, we need to employ good economics. “Good Economics for Hard Times,” tells a story of what went wrong and why. It also shows us solutions we can implement to build a more humane world. Abhijit V. Banerjee and Esther Duflo are world renowned economists with many awards under their belt. “Banerjee and Duflo brilliantly illuminate the largest issues of the day, including immigration, trade, climate change, and inequality.” ~ Cass R. Sunstein

Table of content

  • Summary of Good Economics for Hard Times
  • About the author
  • What is Good Economics for Hard Times about?
  • Who should read Good Economics for Hard Times
  • Topics in Good Economics for Hard Times
first key point

Inequality is exploding, environmental catastrophes loom large, and global policies are failing, but we are doing too little to confront them

Listen the first key point
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The public disagrees on immigration, trade, growth, inequality, or the environment. The world is becoming more polarized. In the US, for example, 81% of those who identify with one party have a negative opinion of the other party. 61% of Democrats view Republicans as racists, sexists, or bigots. 54% of Republicans call Democrats spiteful. A third of Americans wouldn’t even endorse marriage across party lines.

People are not listening to one another because of the polarization that some politicians peddle. Also, there is no consensus on the social problems and how we need to fix them.
Modern society no longer tolerates democracy and debate.
It behooves social scientists to offer facts and interpretation of facts that will help mediate these divides hoping that each side will understand what the other is saying. That way, they can arrive at some reasoned disagreement if consensus is impossible.
Democracy can live with dissent, as long as there is respect on both sides. But respect demands some understanding. ~ Banerjee et al.
The present crisis revolves around economic policy issues. What should be the focus of the West? Should it be growth since we are already affluent? Or should it be on the increasing inequality? Can we blame the present situation on international trade? Should we find another manufacturing hub to replace China? Is migration the problem it is painted to be? Should we be as concerned about AI as we are about low-skilled migration?

Virtually all economists have an opinion on these topics. Unfortunately, people hardly trust economists. What undermines the trust people have in economists is that there is plenty of lousy economics around. Academic economists do not have time to explain their conclusions for ordinary people to understand.

This summary makes a bold attempt to provide good economics in plain language, hoping that we will apply these principles to the hard times we live in globally.
second key point

Misconception that migration to greener pastures drive down wages in the host countries

Migration is big news globally. It is arguably the single most influential political issue in the world’s wealthiest countries. Despite facts that prove otherwise, racist alarmism, driven by a fear of the intermingling of races and the myth of purity and political ambition, has been crying wolf about the adverse effects of immigration into their countries.
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third key point

Most people leave their homes only when there is no longer a place to call home for them

fourth key point

More than economic motivation is necessary to make people migrate

fifth key point

Large bouts of immigration hardly harm the economic opportunities of locals

sixth key point

Modern economics encourages free trade

seventh key point

Skepticism about free trade is bolstered by the realities of the experiences of a number of individual developing countries

eighth key point

Populist leaders throughout the world are feeding on the increasingly open expression of unvarnished animus toward people of different race

ninth key point

Economics typically suggests that opportunities are everywhere, waiting to be discovered and grabbed by those who need them

tenth key point

Conclusion

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What is Good Economics for Hard Times about?

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