Economics for the Rest of Us : Debunking the Science That Makes Life Dismal

**"Vivid case studies . . . Adler's frustration with wrongheaded economic thinking is as entertaining as it is thought provoking." —__Publishers Weekly__** Why do so many contemporary economists consider food subsidies in starving countries, rent control in rich cities, and health insurance everywhere "inefficient"? Why do they feel that corporate executives deserve no less than their multimillion-dollar "compensation" packages and workers no more than their meager wages? Here is a lively and accessible debunking of the two elements that make economics the "science" of the rich: the definition of what is efficient and the theory of how wages are determined. The first is used to justify the cruelest policies, the second grand larceny. Filled with lively examples—from food riots in Indonesia to eminent domain in Connecticut and everyone from Adam Smith to Jeremy Bentham to Larry Summers—__Economics for the Rest of Us__ shows how... “Vivid case studies . . . Adler’s frustration with wrongheaded economic thinking is as entertaining as it is thought provoking.” — Publishers Weekly Why do so many contemporary economists consider food subsidies in starving countries, rent control in rich cities, and health insurance everywhere “inefficient”? Why do they feel that corporate executives deserve no less than their multimillion-dollar “compensation” packages and workers no more than their meager wages? Here is a lively and accessible debunking of the two elements that make economics the “science” of the rich: the definition of what is efficient and the theory of how wages are determined. The first is used to justify the cruelest policies, the second grand larceny. Filled with lively examples—from food riots in Indonesia to eminent domain in Connecticut and everyone from Adam Smith to Jeremy Bentham to Larry Summers— Economics for the Rest of Us shows how today’s dominant economic theories evolved, how they explicitly favor the rich over the poor, and why they’re not the only or best options. Written for anyone with an interest in understanding contemporary economic thinking—and why it is dead wrong— Economics for the Rest of Us offers a foundation for a fundamentally more just economic system. “Brilliant.” —David Cay Johnston, Pulitzer Prize–winning and New York Times –bestselling author of It’s Even Worse Than You Think Income equality, the earliest standard of efficiency Equality does not matter : Pareto efficiency and the free market The Pareto efficiency cops Why redistributing goods may be Pareto efficient after all It is not Pareto efficient : the rich pay too much taxes Private goods Government-supplied goods The classical theory of wages The neo-classical theory of wages : John Bate Clark The evidence The minimum wage Theories of wages and the great depression "Sticky wages " "Efficiency wages", or why unemployment is the fault of shirking by workers Executive compensation Wages, executive compensation, profits, and team production Immigration and wages : an introduction Immigration and immigrants : key figures The effect of immigration on wages The empirical evidence Policy responses to immigration. Income Equality : The Earliest Standard Of Efficiency -- Equality Does Not Matter : Pareto Efficiency And The Free Market -- The Pareto Efficiency Cops -- Why Redistributing Goods May Be Pareto Efficient After All -- A Brief History Of The Federal Income Tax -- It Is Not Pareto Efficient : The Rich Pay Too Much Taxes (or, Laffer's Napkin) -- Private Goods -- Government-supplied Goods -- The Classical Theory Of Wages -- The Neo-classical Theory Of Wages : John Bates Clark -- The Evidence -- The Minimum Wage -- Theories Of Wages And The Great Depression -- Sticky Wages -- Efficiency Wages, Or, Why Unemployment Is The Fault Of Shirking By Workers -- Executive Compensation. Moshe Adler. Includes Bibliographical References. Argues that contemporary economic theories, particularly those concerning efficiency and wages, favor the rich over the poor, and that there are better, more just options