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Failed: What the "Experts" Got Wrong about the Global Economy
Why has the Eurozone ended up with an unemployment rate more than twice that of the United States more than six years after the collapse of Lehman Brothers? Why did the vast majority of low- and middle-income countries suffer a prolonged economic slowdown in the last two decades of the 20th century? What was the role of the International Monetary Fund in these economic failures? Why was Latin America able to achieve substantial poverty reduction in the 21st century after more than two decades without any progress?Failed analyzes these questions, explaining why these important economic developments of recent years have been widely misunderstood and in some cases almost completely ignored. First, in the Eurozone, Mark Weisbrot argues that the European authorities' political agenda, which included shrinking the welfare state, reducing health care, pension, and other social spending, and reducing the bargaining power of labor played a very important role in prolonging the Eurozone's financial crisis and pushing it into years of recession and mass unemployment. This conclusion is based not only on public statements of European officials, but also on thousands of pages of documentation from consultations between the IMF and European governments after 2008.The second central theme of Failed is that there are always practical alternatives to prolonged economic failure. Drawing on the history of other financial crises, recessions, and recoveries, Weisbrot argues that regardless of initial conditions, there have been and remain economically feasible choices for governments of the Eurozone to greatly reduce unemployment-including the hardest hit, crisis-ridden country of Greece.The long-term economic failure of developing countries, its social consequences, as well as the subsequent recovery in the first decade of the 21st century, constitute the third part of the book's narrative, one that has previously gotten too little attention. We see why the International Monetary Fund has lost influence in middle income countries. Failed also examines the economic causes and consequences of Latin America's "second independence" and rebound in the twenty-first century, as well as the challenges that lie ahead.
312 pages, Kindle Edition
First published August 22, 2015
13 people are currently reading
255 people want to read
About the author
Mark Weisbrot
7 books5 followersMark Weisbrot is an American economist and columnist, and is co-director, with Dean Baker, of the Center for Economic and Policy Research (CEPR) in Washington, D.C. As a commentator, he contributes to such publications as The New York Times, The Guardian and Brazil's largest newspaper, Folha de S. Paulo.
As an economist, Weisbrot has opposed privatization of the United States Social Security system and is critical of globalization and the International Monetary Fund (IMF). He has supported efforts by South American governments to create a Bank of the South, in order to make them more independent of the IMF. Weisbrot's work on Latin American countries (including Argentina, Bolivia, Brazil, Ecuador and Venezuela) has attracted national and international attention, and in 2008 was cited by Brazilian Foreign Secretary Celso Amorim. In early 2010, Weisbrot's work on Latvia's economic crisis attracted national and international attention.
Weisbrot has several times contributed testimony to Congressional hearings, in 2002 to a House of Representatives committee, on Argentina's 1999-2002 economic crisis, and in 2004, to the US Senate Foreign Relations Committee, on the state of democracy in Venezuela, and on media representation of Hugo Chávez and of Chávez's Venezuela.
As an economist, Weisbrot has opposed privatization of the United States Social Security system and is critical of globalization and the International Monetary Fund (IMF). He has supported efforts by South American governments to create a Bank of the South, in order to make them more independent of the IMF. Weisbrot's work on Latin American countries (including Argentina, Bolivia, Brazil, Ecuador and Venezuela) has attracted national and international attention, and in 2008 was cited by Brazilian Foreign Secretary Celso Amorim. In early 2010, Weisbrot's work on Latvia's economic crisis attracted national and international attention.
Weisbrot has several times contributed testimony to Congressional hearings, in 2002 to a House of Representatives committee, on Argentina's 1999-2002 economic crisis, and in 2004, to the US Senate Foreign Relations Committee, on the state of democracy in Venezuela, and on media representation of Hugo Chávez and of Chávez's Venezuela.
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Displaying 1 - 10 of 10 reviews
July 16, 2015
I would like to start with a brief quote taken from Chapter 1 footnote 47: “We are assuming here…” This ideally, should have been the title of the book.
This book is filled with as many charts, graphs, and other data as you could wish for. It would have made for interesting reading except for one glaring typo that occurred consistently in the first quarter of the book, the use of the letter “w” in the word “could.” This author had an agenda that he went after with highly biased, bordering on invective language and presentation. He has an ax to grind with the IMF, and by stated implication, the United States. The author consistently uses the word would - things would have been far better without the IMF meddling - instead of the word could - things could have been far better with a different course of action by the IMF. There were many factors presented, but we were 27% into the book… the Preface, the Forward, and most of Chapter one, before the word could is introduced to the reader (see Chapter 1 footnote mentioned above). Hindsight is always perfect. But it is given no credence in this presentation. Isn’t that what history is? Learn from our mistakes? Not according to the framework laid out here. Everyone should have known ahead of time which policies would fail, and avoided them.
At location 1402, the Author says: “Some have pointed to the economic growth success stories of China and more recently India, and argued that since this is nearly half of the developing world - about 2.6 billion people - the neoliberal reforms have been a success. As discussed below, there is scant evidence that these countries’ years of rapid growth can be attributed to neoliberal policies.” By location 1598 the author attributes China’s success to a careful retention of tariffs. But he attributes India’s success to a sizable reduction in tariffs.
Basically, if the data supports his views, he trumpets it out for our edification. If the data does not support his views, he sweeps it aside as inconsequential.
This is really sad to see, because a lot of the information he provides the reader could really take to heart, and agree with. But because of the consistent strident bias in the presentation, the reader is not even given a chance to agree or disagree with him, when forming his own opinion. And isn’t that the purpose of our picking up this book? Form our own opinion based on the facts? Apparently not.
A complimentary advance copy of this book was provided by the publisher for the purpose of review at Netgalley.com .
This book is filled with as many charts, graphs, and other data as you could wish for. It would have made for interesting reading except for one glaring typo that occurred consistently in the first quarter of the book, the use of the letter “w” in the word “could.” This author had an agenda that he went after with highly biased, bordering on invective language and presentation. He has an ax to grind with the IMF, and by stated implication, the United States. The author consistently uses the word would - things would have been far better without the IMF meddling - instead of the word could - things could have been far better with a different course of action by the IMF. There were many factors presented, but we were 27% into the book… the Preface, the Forward, and most of Chapter one, before the word could is introduced to the reader (see Chapter 1 footnote mentioned above). Hindsight is always perfect. But it is given no credence in this presentation. Isn’t that what history is? Learn from our mistakes? Not according to the framework laid out here. Everyone should have known ahead of time which policies would fail, and avoided them.
At location 1402, the Author says: “Some have pointed to the economic growth success stories of China and more recently India, and argued that since this is nearly half of the developing world - about 2.6 billion people - the neoliberal reforms have been a success. As discussed below, there is scant evidence that these countries’ years of rapid growth can be attributed to neoliberal policies.” By location 1598 the author attributes China’s success to a careful retention of tariffs. But he attributes India’s success to a sizable reduction in tariffs.
Basically, if the data supports his views, he trumpets it out for our edification. If the data does not support his views, he sweeps it aside as inconsequential.
This is really sad to see, because a lot of the information he provides the reader could really take to heart, and agree with. But because of the consistent strident bias in the presentation, the reader is not even given a chance to agree or disagree with him, when forming his own opinion. And isn’t that the purpose of our picking up this book? Form our own opinion based on the facts? Apparently not.
A complimentary advance copy of this book was provided by the publisher for the purpose of review at Netgalley.com .
May 6, 2016
I'm giving this an extra star for accessibility -- breezy and concise, this is my new go-to recommendation for what to get your bourgie semi-economically minded relatives who need a push in the right direction.
October 18, 2020
An interesting and authoritative book. While the author clearly is an expert in his field and is therefore clearly able to articulate his argument, an opposing side would also be interesting to counterbalance this book. If, as the author argues, the economic policies of the 2000's as influenced by the ECB and IMF have had such negative consequences on a number of nations, with a crystal ball these issues could have been foreseen and avoided. Let's hope that history does not repeat and these lessons have been learned. An updated commentary regarded economic policy in response to the Covid-19 pandemic would be interesting.
August 13, 2023
This didn't age well: "The us goverment did not take advantage creation as it could have...There is no downside to this money creation since there is no significant risk that inflation will become too high"
November 2, 2015
The sub-title to this book is “what the ‘experts’ got wrong about the global economy” and seeing that immediately reminded one of a phrase that was popular when this reviewer was young: “expert: x is an unknown quantity and spurt is a drip under pressure.” In many ways, it is a rather apt description of the so-called experts, the masters of the universe, who are acting on our collective behalf.
The author seeks to look at why so many experts have failed to understand the global economy, coming out with bold (wrong) predictions or just plain misunderstanding things in recent years. Posing questions such as why did the Eurozone end up with an unemployment rate more than twice than that of the United States and six years after the collapse of Lehman Brothers and what caused the prolonged economic failure experienced by the majority of the world’s low- and middle-income countries at the end of the 20th century? It can’t all just be bad luck, one of those things, or something that is hard to explain… can it?
The author believes that there have been valid alternatives to economic failure and in most cases those wielding the crystal ball could have read the future better and certainly reacted a lot quicker with a higher degree of confidence and accuracy. Politics and adherence to political dogma comes in for much blame in this interesting, thought-provoking book, yet ignorance, bravado and a closed-mind are also symptoms that have inhabited a fair few who may have had a hand or more in the economic soup. In many cases not only did they burn the soup and make its flavour run out, but also they managed to upend the saucepan, destroy the kitchen and do serious damage to the house at the same time.
Mixing economic and political history, current day awareness, opinion and a few provocative fireworks into an interesting, compelling read, you don’t even need to understand it all or agree with it to enjoy the book. Yet you may find a great connection and a meeting of minds, along with rising blood pressure due to the activities and omissions of a few…
You may sense the author’s opinions and colours with ease! Punches are not being pulled, egos are not being massaged and neither is academic-neutral language being deployed. Text such as this is crystal clear: “Of all the examples of neoliberal policy failure since the Great Recession, the Eurozone crisis stands out as a work of art. The European authorities who made this mess – the European Commission, the European Central Bank and the International Monetary Fund – known as ‘The Troika’ – provide one of the clearest, large-scale demonstrations in modern times of the damage that can be done when people in high places get their basic macroeconomic policies wrong. That it has happened in a set of high-income economies with previously well-developed democratic institutions makes it even more compelling.” Ouch!
Should you believe that the author is presenting “a load of old cobblers” (translation: a technical term, often used to show you disagree with the fundamental argument) you can follow the sources for yourself and see whether the author has an argument you may hold with, or whether you are still of the belief that he must have been “smoking something” to come up with such a fantasy.
In any case, it was an interesting read. It gives you food for thought. Anything more than that is a bonus and it may depend on your own perceptions and potential willingness to accept a counterpoint. A worthy consideration to your reading list in any case!
Failed, written by Mark Weisbrot and published by Oxford University Press. ISBN 9780195170184. YYYY
Autamme.com
The author seeks to look at why so many experts have failed to understand the global economy, coming out with bold (wrong) predictions or just plain misunderstanding things in recent years. Posing questions such as why did the Eurozone end up with an unemployment rate more than twice than that of the United States and six years after the collapse of Lehman Brothers and what caused the prolonged economic failure experienced by the majority of the world’s low- and middle-income countries at the end of the 20th century? It can’t all just be bad luck, one of those things, or something that is hard to explain… can it?
The author believes that there have been valid alternatives to economic failure and in most cases those wielding the crystal ball could have read the future better and certainly reacted a lot quicker with a higher degree of confidence and accuracy. Politics and adherence to political dogma comes in for much blame in this interesting, thought-provoking book, yet ignorance, bravado and a closed-mind are also symptoms that have inhabited a fair few who may have had a hand or more in the economic soup. In many cases not only did they burn the soup and make its flavour run out, but also they managed to upend the saucepan, destroy the kitchen and do serious damage to the house at the same time.
Mixing economic and political history, current day awareness, opinion and a few provocative fireworks into an interesting, compelling read, you don’t even need to understand it all or agree with it to enjoy the book. Yet you may find a great connection and a meeting of minds, along with rising blood pressure due to the activities and omissions of a few…
You may sense the author’s opinions and colours with ease! Punches are not being pulled, egos are not being massaged and neither is academic-neutral language being deployed. Text such as this is crystal clear: “Of all the examples of neoliberal policy failure since the Great Recession, the Eurozone crisis stands out as a work of art. The European authorities who made this mess – the European Commission, the European Central Bank and the International Monetary Fund – known as ‘The Troika’ – provide one of the clearest, large-scale demonstrations in modern times of the damage that can be done when people in high places get their basic macroeconomic policies wrong. That it has happened in a set of high-income economies with previously well-developed democratic institutions makes it even more compelling.” Ouch!
Should you believe that the author is presenting “a load of old cobblers” (translation: a technical term, often used to show you disagree with the fundamental argument) you can follow the sources for yourself and see whether the author has an argument you may hold with, or whether you are still of the belief that he must have been “smoking something” to come up with such a fantasy.
In any case, it was an interesting read. It gives you food for thought. Anything more than that is a bonus and it may depend on your own perceptions and potential willingness to accept a counterpoint. A worthy consideration to your reading list in any case!
Failed, written by Mark Weisbrot and published by Oxford University Press. ISBN 9780195170184. YYYY
Autamme.com
February 28, 2016
Fascinating and easy-to-read critique of mainstream economic policies. Weisbrot is strongly opposed to austerity measures, as they've been applied in much of the Global South and in Europe, and he marshals a good deal of economic evidence to argue that these policies have been terrible by almost any measure. He argues that measures designed to corral inflation, reduce budget deficits, privatize resources, cut social spending, and limit taxation have generally had negative outcomes in terms of inequality, unemployment, and economic growth.
Weisbrot's discussion of Europe is the most technical and least interesting part of the discussion (unless of course you're European). So if the first half of the book feels too technical, skip to the later half: to the more global arguments he's making. E.g. Weisbrot's chapter on the IMF simply bludgeons what has been an increasingly inept and out of touch and indeed violent organization. His chapter on Latin America (and his earlier discussion on Argentina) demonstrate that the "Washington Consensus" policies pursued in the 1970s and 1980s and into the 1990s were horrifically cruel to growth, poverty, and well-being, while the new policies of Morales, Lula, Chavez, et al. have produced far better outcomes, not only in terms of social justice, but in terms of economic growth.
Along the way, Weisbrot shows that many of the most successful economies (China, India, etc.) have gone *against* conventional economic wisdom about budgets, currency rates, spending, and so forth. "Free market" policies have created economic stagnation, increasing rates of poverty, widening inequality, and more. Moreover, as Weisbrot shows, these "free market" solutions rely heavily on institutions and coercive measures, rather than markets.
Weisbrot's book is a readable, yet brutal indictment of status quo assumptions that operate in economics today. Nicely compliments, Byth's _Austerity: The History of a Dangerous Idea_. _Failed_ is an excellent book. It would be nice to see it get more attention at universities and in the corridors of power.
Weisbrot's discussion of Europe is the most technical and least interesting part of the discussion (unless of course you're European). So if the first half of the book feels too technical, skip to the later half: to the more global arguments he's making. E.g. Weisbrot's chapter on the IMF simply bludgeons what has been an increasingly inept and out of touch and indeed violent organization. His chapter on Latin America (and his earlier discussion on Argentina) demonstrate that the "Washington Consensus" policies pursued in the 1970s and 1980s and into the 1990s were horrifically cruel to growth, poverty, and well-being, while the new policies of Morales, Lula, Chavez, et al. have produced far better outcomes, not only in terms of social justice, but in terms of economic growth.
Along the way, Weisbrot shows that many of the most successful economies (China, India, etc.) have gone *against* conventional economic wisdom about budgets, currency rates, spending, and so forth. "Free market" policies have created economic stagnation, increasing rates of poverty, widening inequality, and more. Moreover, as Weisbrot shows, these "free market" solutions rely heavily on institutions and coercive measures, rather than markets.
Weisbrot's book is a readable, yet brutal indictment of status quo assumptions that operate in economics today. Nicely compliments, Byth's _Austerity: The History of a Dangerous Idea_. _Failed_ is an excellent book. It would be nice to see it get more attention at universities and in the corridors of power.
August 26, 2016
The title says it all: the author obviously has an axe to grind with the world's economic experts and the IMF in particular. In his scathing criticism, he doesn't hold back punches and is obviously not afraid to offend anyone.
Weisbrot is completely against austerity measures, believing they shrink the economy and widen the inequality gulf, making the rich richer and the poor poorer. He puts a lot of the blame for those measures squarely on the shoulders of the IMF, believing countries would be better off economically without the organisation's meddling. Instead, he points out how countries such as China and India have gone against the conventional wisdom of free trade policies to boost their economies, which are now two of the most successful worldwide.
The author makes extensive use of charts, graphs, and other data to back up his thesis and encourage all countries to breaking away from the chains of the IMF and "free trade" policies, promising them a brighter future if they do so. While I agree with many of the theories in this book, I found the author's biases quite offputting. When a book is so obviously biased, I can't help but wonder if the author has shown us all the data or if he removed those that didn't agree with his theory? I am just sceptical like that.
Despite its few shortcomings, the book is an accessible read about a complex economic problem that provides interesting food for thought. Not everyone will agree with the author's thesis, but the book is still well worth a read.
Weisbrot is completely against austerity measures, believing they shrink the economy and widen the inequality gulf, making the rich richer and the poor poorer. He puts a lot of the blame for those measures squarely on the shoulders of the IMF, believing countries would be better off economically without the organisation's meddling. Instead, he points out how countries such as China and India have gone against the conventional wisdom of free trade policies to boost their economies, which are now two of the most successful worldwide.
The author makes extensive use of charts, graphs, and other data to back up his thesis and encourage all countries to breaking away from the chains of the IMF and "free trade" policies, promising them a brighter future if they do so. While I agree with many of the theories in this book, I found the author's biases quite offputting. When a book is so obviously biased, I can't help but wonder if the author has shown us all the data or if he removed those that didn't agree with his theory? I am just sceptical like that.
Despite its few shortcomings, the book is an accessible read about a complex economic problem that provides interesting food for thought. Not everyone will agree with the author's thesis, but the book is still well worth a read.
April 11, 2016
Like a data-driven (instead of anecdote-driven) version of Boomerang: Travels in the New Third World - that is to say, a better version. Much of this will fail to blow your mind if you've paid any attention to global economics over the last ten years (the troika pushes pro-cyclical policies that worsen recessions? YOU DON'T SAY), but all of it is still commendably strong, and the chapters on various countries in Latin America are indispensable.
November 15, 2015
15a02 #### GaryNull .30 Black Peoples' Perspective .45 Dr. Mark Weisbrot, Oliver Stone’s 'So of the Border' & 'Failed- What Experts Got Wrong About Global Econ' CEPR.org .mp3
Displaying 1 - 10 of 10 reviews