Redeeming Economics

by John D. Mueller

Economics is primed for a revolution, says respected economic forecaster John D. Mueller. To make this leap forward will require looking backward, for as Redeeming Economics reveals, the most important element of economic theory has been ignored for more than two centuries.

Since the great Adam Smith tore down this pillar of economic thought, economic theory has had no way to account for a fundamental aspect of human experience: the social relationships that define us, the loves (and hates) that motivate and distinguish us as persons. In trying to reduce human behavior to mere exchanges, modern economists have lost sight of how these essential motivations are expressed: as gifts (or their opposite, crimes). Mueller makes economics whole again, masterfully reapplying economic thought as articulated by Aristotle, Augustine, and Aquinas.

Contrarian and compelling, Redeeming Economics covers everything from unemployment, to inflation, to the economics of parenthood, to the greatest geopolitical challenge facing the United States, to flaws in the mega-bestseller Freakonomics, to the author’s illuminating exchange with the controversial philosopher Peter Singer.

Genres: Economics, Nonfiction, Business

400 pages, Kindle Edition

First published February 1, 2007

Reviews

[Andrew · Rating 2 out of 5]

I appreciate that Mueller sees that there are significant problems with economics as a profession. I greatly appreciate his critique of Adam Smith and classical economics. I also like his survey of scholastic economics. However, I did not like his dismissal of Austrian Economics:

Most of [Menger's] Austrian-school followers today reject even the mathematical description of economic events... Since without mathematical treatment, empirical verification of an economic theory is virtually impossible, despite its impressive beginnings Austrian-school economics has contributed relatively little in recent decades to the development of economic theory, and it has become virtually irrelevant to the formulation of economic policy."

Setting aside the fact he sets this odd standard: that the ruling class, who formulates economic policy, are the arbiters of whose economic we should study, we'll look at another troubling aspect of his dismissal of Austrian-school economics—methodology.

Since economics is a study of human action within space and time, we cannot apply scientific method to it and empirically test anything! We can look at empirical data from test group but we can never look at the data from the control group since there are not two parallel universes running simultaneously! We can however study economics through thought experiment and the logical deduction of irrefutable theory. The rest of Mueller's book which contains copious "empirical proofs" which differ little in their content from professional economics, despite coming to different conclusions (e.g. his discussion of abortion and crime). Most disappointing in his dismissal of Austrian-school economics is brings up Mises a few times merely as a foil and never once mentions Rothbard. Anyone who brings up the Austrian School without a mention of Rothbard has not dealt seriously with it. It would be like not mentioning Machiavelli in a discussion of Renaissance political theory, or redacting the name of Marx from a discussion of Communism.

Without a serious critique of Austrian theory, Mueller has merely torn down the modern strawman of Keynesiansim and Monetarism, but he has pretended the formidable Austrian school does not exist.

*A good companion to Redeeming Economics, especially Mueller's survey of economic history, is Murray Rothbard's Economic Thought Before Adam Smith and Classical Economics.

[Matt · Rating 4 out of 5]

This is a rather challenging read, and so even though I would recommend this book to others, I would do so with a bit of qualification. As a novice with no formal training in economics, I found the chapters outlining economic theory and the history reasonably understandable. For the chapters dealing with in-depth economic analyses, I found myself skipping large chunks, especially when it dealt with mathematical equations. Someone may have to make heads or tails of all that for me.

[Betsy Dion · Rating 4 out of 5]

I read most of this book, but then I had to return it to the library. It was definitely over my head, but I will probably buy a copy, and try to understand it better. I want to understand his explanations of what Aquinas and Augustine taught about economics.

[Paul · Rating 2 out of 5]

I appreciate the attempt but unfortunately the final suggestions of returning to the gold standard, a flat tax, and grumbling about the Fed doesn't really live up to the promise of neo-scholastic economics. Maybe the "neo" was the problem from the start...
Some good points on occasion though:
A healthy society doesn't abort the next generation.
Modern economics does not account for the non-commercial elements of human capital, especially in the home.
Now in 2023, a full thirteen years later, I'm sure he'd have a field day with the new normal of both parents being expected to work to maintain a certain standard of living.
Other areas are unfortunately lacking:
He brushes past deregulation to blame solely the housing market for the problems of '08.
He doesn't mention at all the effect of financialization on real industry.
I can only imagine what he thinks of Hungary's government subsidies for promoting family welfare in a world designed for the single consumer.

[Ian · Rating 4 out of 5]

Has economics been simplified on such a way that we have a poorer understanding now of economic laws and processes than the medievals did? That's precisely what Mueller argues, and quite persuasively.

[Karl · Rating 3 out of 5]

8 Dec 2018: Changed rating from 4 stars to 3 stars due to its rather simplistic reading of the history of economic thought.

Not the worst book for newcomers, but Mueller ignores several nuances and critical events that would challenge his thesis.