If you're anything like me and the current uncertainties in the economy leave you confused and scared and wishing for someone to explain what is happening, why it is happening, and most importantly, what to do about it, you might consider picking up a copy of Mindful Economics by Joel Magnuson.
At the outset, Mindful is refreshing in that it runs counter to much of contemporary economic dogma. There are no laudatory genuflections toward the "free market." Nor does the book contain any "get rich quick" schemes. As its title suggests, Mindful is not light reading. It is a book that takes some thought. But the effort is well worth it.
Magnuson's thesis for the book is simple: Historically, capitalism has demonstrated it has many flaws. Being systemic, they cannot be fixed merely by tinkering with taxes, tariffs, or regulations. Magnuson demonstrates quite convincingly that environmental degradation, exploitation of workers, and financial instability are not examples of capitalism breaking down. Instead, they are the logical result of an economic system whose overall purpose is to "make and accumulate profits for an investor class who own and control the property of private businesses, i.e., capital."
The turbulent history of labor relations in this country presents a devastating indictment of capitalism's essentially anti-democratic nature. Moreover, the repeated cycles of business monopolization and the concentration of wealth and power in the hands of a small investor class belie big businesses' claims that the "free market" is a panacea for the ages. In the book, Magnuson gives many examples of capitalism's shortcomings, but perhaps the most devastating example is its reliance on economic growth. In Magnuson's words: "Capitalism requires exponential growth and no matter how intelligently you design it, it is not sustainable."
Magnuson's historical scholarship is sound. Likewise, his analysis of capitalism's flaws seems accurate. It is in the third part of the equation, however