Economic Policy Beyond the Headlines

by George P. Shultz, Kenneth W. Dam

Drawing from their experience as government insiders, George P. Shultz and Kenneth W. Dam show how economic policy is shaped at the highest levels of government. They reveal the interconnections between economic, social, and international policy, covering issues such as the advocacy system and the role of the individual in shaping policy. A new chapter, 'A Changed World,' explores the various influences of our increasingly global economy on economic strategy. With rare candor, authority and breadth of vision, Shultz and Dam have produced a brilliant introduction to economic policy, its principles, and practice.

"A model of brevity and lucidity . . . [ Economic Policy Beyond the Headlines ] incorporates a unique and rewarding blend of economic reasoning with a high level of political awareness . . . enriched by the wide personal experience in government of the authors."—Albert T. Sommers, Across the Board

"[Shultz and Dam] help foreign readers to understand why the world looks so different from Washington. . . . This book should provide the model."— The Economist

"A wise and valuable book showing great insight into the realities of economic policy making."—Henry A. Kissinger

Genres: Economics, Nonfiction, Politics

249 pages, Paperback

First published June 20, 1998

About the author

American economist, statesman, and businessman. He served in various positions under three different Republican presidents, including Secretary of State, Treasury and Labor, as well as Director of the Office of Management and Budget.
He graduated from Princeton University before serving in the United States Marine Corps during World War II. After the war, Shultz earned a PhD in industrial economics from the Massachusetts Institute of Technology (MIT). He taught at MIT from 1948 to 1957, taking a leave of absence to take a position on President Dwight D. Eisenhower's Council of Economic Advisers. After serving as dean of the University of Chicago Graduate School of Business, he accepted President Richard Nixon's appointment to the position of United States Secretary of Labor. In that position, he imposed the Philadelphia Plan on construction contractors that refused to accept black members, marking the first use of racial quotas by the federal government. In 1970, he became the first Director of the Office of Management and Budget, and he served in that position until his appointment as United States Secretary of the Treasury in 1972. Shultz supported the Nixon shock, which sought to revive the ailing economy in part by abolishing the gold standard. He also presided over the end of the Bretton Woods system.
Schultz left the Nixon administration in 1974 to become an executive with Bechtel. After becoming president and director of that company, he accepted President Ronald Reagan's offer to serve as the United States Secretary of State. He held that office from 1982 to 1989. Shultz pushed for Reagan to establish relations with Soviet leader Mikhail Gorbachev, which led to a thaw between the United States and the Soviet Union. He opposed the U.S. aid to the Sandinistas which led to the Iran–Contra affair.
Shultz retired from public office in 1989 but remained active in the business and political world. He is a member of the Hoover Institution, the Institute for International Economics, the Washington Institute for Near East Policy, and other groups.

Reviews

[Ammon · Rating 4 out of 5]

Fascinating and surprisingly reasonable for a bunch of Republicans (although, granted this was when Republicans actually stood for fiscal responsibility along with a heady dose of corporate patronage.

[Tessa · Rating 4 out of 5]

This book is a little too old-school conservative for my taste and for complete applicability to the economic issues of today. However, this book is really good for three things: 1) if you understand a little bit about economics and policy making but want to understand it more 2) if you want to understand the conservative methodology and reasoning that set the stage for current economic policy pursued by Republicans and 3) if you really like learning about economics issues in the early 1970s or need to do so for whatever reason. Had to chug my way through this one, but still relatively captivating — or as much as economics can be.

[Gregory]

I'm sure this book was good when it was first published, but now it's too dated.

[Kelsey · Rating 1 out of 5]

Bad writing and poor editing

[Aliza · Rating 2 out of 5]

I found the discussion of international monetary policy enlightening - this was something I felt I needed to understand better, and it did clarify exchange rates and import/exports theories for me. But large chunks of the books are pretty dry, and I think there is too much focus on the authors' theory of "The Balkanization of Politics." I agree that there are sometimes too many interest groups and agencies trying to advance conflicting agendas, but I don't think the pages devoted to this topic was necessary. I just found myself getting bored quite often.

The authors are clearly Republican, but for the most part I think they kept a partisan agenda out of their writing - that is, until the afterword, where the calls for privatized social security and dramatically lower taxes made me want to heave the book against a wall.

[Mo · Rating 4 out of 5]

Very useful despite being outdated. The author's apparent confidence that the market can solve any problem if left to itself - including environmental ones - seems naive in retrospect. Highlights: the bureaucracy involved in formulating economic policy, the interaction of domestic and international markets as well as the public and private sector, the influence of anticipation and expectations, + a Republican advocating straight-up income redistribution via a negative income tax (ahh, the 70's).

[Kirsten Allen · Rating 3 out of 5]

What can I say, it is a book about economic policy. They could do with putting out a third edition that has been totally revised, instead of using the same example from 1977 and just adding a new chapter, which is what they did for the second edition.