‘Good Economics for Hard Times- Better Answers to our Biggest Problems’
- A Book-Review
Yes, governments should build good trust in public that they are doing but for their nations
In
democracies it is important, as political parties have to woo voters to poll in
their favour.
I am
reading a book ‘Good Economics for Hard Times : Better Answers to our
Biggest Problems’
It is by
Indian Abhijit V. Banerjee & US Esther Duflo, winners of 2019 Nobel Prize in
Economics.
It figures
out how to deal with today's critical economic problems – greatest challenge of
time
What
is at stake is the whole idea of the good life, and perhaps, of liberal democracy
also.
We’ve resources
to solve problems, but lack ideas to jump dividing disagreement-wall & distrust
Only
if we can engage seriously in this quest, and world’s best minds work with
governments.
If civil society can redesign social effectiveness & political viability programs, history will gratefully remember our era.
Questions are whether international trade is good for all, do immigrants from poorer countries take jobs from low-income native workers, or does redistribution actually undermine incentives,
Or should
we worry about rise of artificial intelligence or celebrate it, how do we
manage trade-off between growth & climate change, and is economic growth is
over in West & should we care?
Figuring
out how to deal with today's critical economic problems’ is great challenge of present,
And it
is much greater than a space travel, perhaps even than curing the cancer.
The Book
carefully lays out evidence for grounded approach to tackle most pressing
global problems
With
focus on alleviating inequality & poverty, it clears path for more
interdisciplinary work centred on improving citizens’ well-being &
protecting human dignity.
The
authors emphasise the role of policy in influencing individual behaviour, habits
and norms
And specifically,
they call for the interventions that marry issues of psychology & economics.
A book
must include a change-theory : How to use insight to bring about a more humane
world
Authors
offer an enlightened selfishness by rich : ‘They may eventually see self-interest
to argue for a radical shift towards real sharing of prosperity’.
A rigor
sharp analysis disseminated to public is -‘Only course against bad ideas is to
be vigilant’.
The
book’s greatest contribution is to provide ideas by demonstrates both brilliant
insights
Mainstream
economics can inform of limits, progressive internationalism has duty to
transcend.
They conclude
despite best efforts of generations of economists, deep mechanisms of
persistent economic growth remain elusive,
And recommend
a focus on poverty reduction using insights from randomized controlled trials.
Bill
Gates says ‘Economics is not grounded in natural laws like Newton's Law of gravitation
And it
is very much rooted in the human nature, which is notoriously hard to predict.
Those
lucky enough to be in right place at right time, with right skills or ideas, grow
wealthy, sometimes fabulously so’, and ‘For the rest, jobs were lost & not
replaced’
Trade created
more volatile world, jobs suddenly vanish only to turn up a thousand miles
away.
Politicians
need be more honest, enact smart policies helping losers from trade & technologies
They may
use extensive data to zoom out & show us a wider view of their human
dynamics.
John
Maynard Keynes, founder of Keynesian economics, once said, ‘If economists could
manage to get them thought of as humble, competent men as dentists, that would
be splendid’.
Able
economists like plumbers patiently solve problems with a combination of
intuitions grounded in science.
Some guess
with grounded in science, some aided by experience, and a pure
trial & errors
Preferred
tool of trial & errors is randomly controlled, but make healthy use of
other evidences.
To fix
a water tap, informed poking is good, but house-building thinking is hard what you
want
Not
just technical knowledge, but also normative judgement what we try to achieve &
for whom.
Authors
remain a little enigmatic in that respect, they certainly want world to be a
better place
But not
clear what that place would look like, other than having less poverty &
nastiness.
We have
resources to address issues of Immigration & inequality & globalisation,
And of
technological disruption, slowing growth & accelerating climate change,
etc.
But lack
ideas that will help us to jump walls of disagreement & distrust that
divides
If succeed,
history will gratefully remember our era; otherwise, incalculable potential
losses.
Developing
world has people- problems left behind by development, ballooning inequality,
And of
lack of faith in the governments, there’re fractured societies & polity,
and so on.
Economics
must try ideas-solutions & be wrong, its ultimate goal is to build more
humane world
Democracy
can live with dissent, if all respect each other, but demands some
understanding.
Focus
on income alone is not just a convenient shortcut, but more of having a
fulfilling life
Respect
for community, the comforts of family & friends, and dignity, lightness
& pleasure.
A deep
human desire is of the dignity & human contract, and we all should work.
This is
little about of this 403-pages work of husband-wife, one from JNU & other
from MIT
As a
human-being, I must too inculcate a broader world-view for citizens’ welfare
& dignity.
Pawan
Kumar,
10th
February, 2024 Saturday, Time 20.37 (Evening)
(My Chennai Dairy 13th April 2023, Thursday, 7.20 A.M.)
