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The End of Progress: How Modern Economics Has Failed Us
A cold, hard look at how modern economics has failed us and why we need a new measure of progress Modern economics has fallen short. It has widened the gap between rich and poor. It has not allocated the world's resources fairly. It has brought the West to the brink of financial ruin. It has placed short-term gain before long-term progress. And it has made us focus on the individual, not the society. The end result is a worldwide financial crisis of epic proportions and a planet being scraped clean of the resources needed by future generations, and things are only getting worse. In The End of How Modern Economics Has Failed Us popular economist Graeme Maxton looks at what went wrong, and what we can do to get ourselves back on track. During the Age of Enlightenment society flourished, propelled by the wonder of new discoveries, radical ideas for economic and social development, and a sense that we all had a responsibility to improve our world. It's time to get back to those ideals, step back and examine our values, and work out what humankind really needs. A thought-provoking, informative book, The End of Progress looks at what got us into our present mess, and shines light onto the road ahead.
- GenresEconomicsNonfiction
256 pages, Hardcover
First published August 4, 2011
4 people are currently reading
92 people want to read
About the author
Graeme Maxton
18 books10 followersGraeme Maxton is an economist and writer covering the world economy, global business and Asia. Well-known for his insights, stimulating presentations and event-chairing style, he provides punchy, clearly articulated analysis on the opportunities and risks that lie ahead. He has a reputation for accurate predictions too – having anticipated the 2007 financial crisis nearly a decade ahead.
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Displaying 1 - 9 of 9 reviews
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April 30, 2021
November 17, 2016
This isn't a post-apocalyptic thriller. It's not a horror story. It's far scarier. Published in 2011, the author warns of events to come…the rise of religious extremism and right-wing nationalism, the increasing disparity between the rich and everyone else, the exploitation of people and the depletion of natural resources, unmanageable debt and economic collapse…. The cause, he claims (on page 209) is that "Modern economics has twisted the ideas of classical economics. Economics was a subject that originally stemmed from moral philosophy. Its theories were based on concepts of equality, fairness and value, not undeserved profit and selfishness."
The author suggests that we in Western society, the beneficiaries of the Enlightenment, have forgotten, or are simply ignoring, the aspect of social responsibility inherent in Adam Smith's theories about the 'free market'. The enlightened self-interest necessary to guide Smith's invisible hand is now operating in a very unenlightened manner. We're still all on board with the self-interest part, though. We've come to equate 'progress' with 'profit', as if money is the only proper way to measure the value of things. We've allowed speculators, financiers, and profit-seeking corporations to shape public policy with little or no regard for anything beyond their next quarterly earnings, and we've crippled governments from being able to provide a counterbalance to their selfish interests. After all, functional, responsible governments might insist that banks and businesses consider the effects of what they are doing on people other than their shareholders, and that might cut into their short-term profits. We can't have that!
The author's observations and predictions are disturbingly accurate, in my opinion, although he tends toward alarmism. He briefly mentions nations such as Germany, which has not allowed the quest for profit to run as badly out of control as the US and UK. But rather than seeing this as a hopeful sign, he suggests that the problems we've created are so great that all nations are endangered, regardless of their national policies. He also discounts the efforts of entrepreneurs. He acknowledges that they exist, but he questions their motives. He may be right in this, but when I see people like Elon Musk using his wealth to advance space exploration (Space X); develop new, more efficient transportation (hyperloop and Tesla electric cars); and develop improved solar technology (Solar City roof shingles, etc.), I think that all might not be lost. Yes, governments have weakened. They don't regulate or tax to the extent they perhaps should. They invest too little in education, scientific research, national infrastructure, and other things of long-term benefit. And there is no doubt that the financial sector is skimming billions of dollars from the economy and providing nothing of true value in return. And many corporations, so concerned with keeping their stock prices and dividends high, are cutting back on R&D and labor. But I have to believe, or at least I want to believe, that there will always be someone, a nation or an individual, who has the right combination of wisdom, assets, and drive, to keep the dream of the Enlightenment alive. In order for humanity to continue to progress, we need that.
The final section of the book is devoted primarily to suggestions of what needs to be done to get us out of the jam we've gotten ourselves into. We need to stop consuming so much. We need to be more skeptical. We need to be more optimistic. We need to tax more. We need to develop a new economic model. We need to ask ourselves what life is truly about…. Maybe, but we won't; at least not before things fall apart. After about two hundred pages convincingly relating how shortsighted and selfish interests have taken over the economy, he tells us it's possible to turn it around. Who's going to do that? The same shortsighted selfish people who got us here? They're the ones in charge now! I wish we could suddenly get a lot wiser, but I'm doubtful. When anticipating collective human behavior, I've found it's normally best not to assume too much. Individually, we can be rational, responsible, and insightful, but as a whole, we tend to behave like an impulsive six-year-old. We've dug ourselves a deep hole. For the last thirty-plus years we drank the Kool-Aid that said we could buy on credit, consume, and waste as if the bill would never come due, as if today was all that mattered because tomorrow would take care of itself. Well, we're fast approaching tomorrow. It looks like it's going to be pretty dark and cloudy.
(This review was originally published on the Avery Slom Philosophical Laboratory)
The author suggests that we in Western society, the beneficiaries of the Enlightenment, have forgotten, or are simply ignoring, the aspect of social responsibility inherent in Adam Smith's theories about the 'free market'. The enlightened self-interest necessary to guide Smith's invisible hand is now operating in a very unenlightened manner. We're still all on board with the self-interest part, though. We've come to equate 'progress' with 'profit', as if money is the only proper way to measure the value of things. We've allowed speculators, financiers, and profit-seeking corporations to shape public policy with little or no regard for anything beyond their next quarterly earnings, and we've crippled governments from being able to provide a counterbalance to their selfish interests. After all, functional, responsible governments might insist that banks and businesses consider the effects of what they are doing on people other than their shareholders, and that might cut into their short-term profits. We can't have that!
The author's observations and predictions are disturbingly accurate, in my opinion, although he tends toward alarmism. He briefly mentions nations such as Germany, which has not allowed the quest for profit to run as badly out of control as the US and UK. But rather than seeing this as a hopeful sign, he suggests that the problems we've created are so great that all nations are endangered, regardless of their national policies. He also discounts the efforts of entrepreneurs. He acknowledges that they exist, but he questions their motives. He may be right in this, but when I see people like Elon Musk using his wealth to advance space exploration (Space X); develop new, more efficient transportation (hyperloop and Tesla electric cars); and develop improved solar technology (Solar City roof shingles, etc.), I think that all might not be lost. Yes, governments have weakened. They don't regulate or tax to the extent they perhaps should. They invest too little in education, scientific research, national infrastructure, and other things of long-term benefit. And there is no doubt that the financial sector is skimming billions of dollars from the economy and providing nothing of true value in return. And many corporations, so concerned with keeping their stock prices and dividends high, are cutting back on R&D and labor. But I have to believe, or at least I want to believe, that there will always be someone, a nation or an individual, who has the right combination of wisdom, assets, and drive, to keep the dream of the Enlightenment alive. In order for humanity to continue to progress, we need that.
The final section of the book is devoted primarily to suggestions of what needs to be done to get us out of the jam we've gotten ourselves into. We need to stop consuming so much. We need to be more skeptical. We need to be more optimistic. We need to tax more. We need to develop a new economic model. We need to ask ourselves what life is truly about…. Maybe, but we won't; at least not before things fall apart. After about two hundred pages convincingly relating how shortsighted and selfish interests have taken over the economy, he tells us it's possible to turn it around. Who's going to do that? The same shortsighted selfish people who got us here? They're the ones in charge now! I wish we could suddenly get a lot wiser, but I'm doubtful. When anticipating collective human behavior, I've found it's normally best not to assume too much. Individually, we can be rational, responsible, and insightful, but as a whole, we tend to behave like an impulsive six-year-old. We've dug ourselves a deep hole. For the last thirty-plus years we drank the Kool-Aid that said we could buy on credit, consume, and waste as if the bill would never come due, as if today was all that mattered because tomorrow would take care of itself. Well, we're fast approaching tomorrow. It looks like it's going to be pretty dark and cloudy.
(This review was originally published on the Avery Slom Philosophical Laboratory)
December 8, 2011
Great analysis on how economics, politics, our desire to consume and borrow money are linked. We have not only been exploiting our natural resources but we are not paying what we should for using them. This creates incentives to keep doing the same as if we were blinded to our actions. Graeme, also does an amazing job in showing the implications of future political and economic decisions and how tough they will be to make. We are at a point where the right decisions won’t please everyone, especially the ones who have the power to make them. The title ‘end of progress’ fits so well on our global problems. But it also indicates that we might be looking at the wrong measures to assess progress.
We all need to be more aware of the consequences of our way of living and how much we are asking our and future generation to pay. Worse, many will pay with their lives, bad nutrition and poor standards of living.
It's easy to say that we need to save the planet, but without understanding the big picture we can't do much. In this book, Graeme describes the big picture and the tensions that are at stake. I’m impressed by the many perspectives Graeme looks at to build his argument. Well done!
An easy read, although I wished there were more info-graphics visualizing the many trillions of dollars of debt, the cost incurred to our planet and the benefit we get from nature. Yet, a not so easy topic is make clear to any reader.
We all need to be more aware of the consequences of our way of living and how much we are asking our and future generation to pay. Worse, many will pay with their lives, bad nutrition and poor standards of living.
It's easy to say that we need to save the planet, but without understanding the big picture we can't do much. In this book, Graeme describes the big picture and the tensions that are at stake. I’m impressed by the many perspectives Graeme looks at to build his argument. Well done!
An easy read, although I wished there were more info-graphics visualizing the many trillions of dollars of debt, the cost incurred to our planet and the benefit we get from nature. Yet, a not so easy topic is make clear to any reader.
July 7, 2015
If you weren't feeling worried enough about the world economy and the future of humanity; this book will provide sufficient stress to keep you awake at least for sometime. As with anything, whether religion, science, and especially economics: we have to constantly question the theories and the assumptions, else we are lulled by false beliefs and end up realising it was too late. The book highlights the mania of constant growth (at almost any cost) that has become a mantra of countries around the world leading to resource exhaustion, exploitation, conflicts, wars and reversal in improvement of living conditions for the poorest in the world while making some people rich beyond comprehension.
The fundamental question of the purpose of that growth, the balance required, and growth for whom has been overlooked in this mad rush to grow and industrialise and consumer ever more. Encouraging people to take ever increasing debts to consume more for the purpose of growth doesn't make any sense except probably to the GDP calculating economists.
In the end, as with anything else, the question we have to constantly ask is 'What is the purpose?' and if we can't find a sufficiently satisfying answer, then ask again and again for that is what makes us human.
The fundamental question of the purpose of that growth, the balance required, and growth for whom has been overlooked in this mad rush to grow and industrialise and consumer ever more. Encouraging people to take ever increasing debts to consume more for the purpose of growth doesn't make any sense except probably to the GDP calculating economists.
In the end, as with anything else, the question we have to constantly ask is 'What is the purpose?' and if we can't find a sufficiently satisfying answer, then ask again and again for that is what makes us human.
August 16, 2012
huxley was right. orwell was right. tyler durden was right. naomi klein was right. jean-jacques rousseau was right. earth is literally choking. prosperity without growth is the only option, yet as a concept, is unacceptable for the worlds stock markets.
recommended related learning:
podcast:
http://www.abc.net.au/radionational/p...
futurist opinion peice:
http://grinding.be/2011/03/07/its-not...
rolling stone article:
http://www.rollingstone.com/politics/...
"Their actions are founded on an acceptance of injustice. They see their role as trying to mitigate the effects. Today’s billionaires do not fight to bring change to the system that created their unequal wealth. Few appear to see any inconsistency or irony in their offering help to the poor."
https://kindle.amazon.com/work/the-en...
recommended related learning:
podcast:
http://www.abc.net.au/radionational/p...
futurist opinion peice:
http://grinding.be/2011/03/07/its-not...
rolling stone article:
http://www.rollingstone.com/politics/...
"Their actions are founded on an acceptance of injustice. They see their role as trying to mitigate the effects. Today’s billionaires do not fight to bring change to the system that created their unequal wealth. Few appear to see any inconsistency or irony in their offering help to the poor."
https://kindle.amazon.com/work/the-en...
November 13, 2012
One of the BEST books I have read covering the subject of the state of the economic model pursued the world over.
I firmly have believed that it is completely WRONG. This book disects it from all angles: unlike other writings. It is very detailed, showing how the model has failed mankind in every aspect of ourlives. This model has truly sent mankind back to the Dark Ages.
My childerns' generation WILL suffer the major serious concequences, as will the childern around the world.
The recommended solutions CAN NOT be refuted. Yes they are the bitter pill to swallow. Unfortunately there are NO alternatives.
The trajectory of our near future can be seen very clearly.
OUTSTANDING
I firmly have believed that it is completely WRONG. This book disects it from all angles: unlike other writings. It is very detailed, showing how the model has failed mankind in every aspect of ourlives. This model has truly sent mankind back to the Dark Ages.
My childerns' generation WILL suffer the major serious concequences, as will the childern around the world.
The recommended solutions CAN NOT be refuted. Yes they are the bitter pill to swallow. Unfortunately there are NO alternatives.
The trajectory of our near future can be seen very clearly.
OUTSTANDING
January 3, 2014
Often bleak, but an important read. A macro look at the current state of the world, and the frightening outcomes of unchecked consumerism. If even only some of what Maxton predicts comes to pass, we're in for some pretty ugly times in the next few decades.
July 7, 2014
This book promised much more than it delivered. It claimed to be a new take on Adam Smith, but mostly used Smith's name to espouse a lot of gloom and doom. I am not sure the author really read Adam Smith.
November 13, 2015
An eyeopening book even though its already some years old. I had the pleasure to attend a live talk of Mr. Maxton about the Club of Rome and all the climate issues.
Displaying 1 - 9 of 9 reviews