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The ABCs of Political Economy: A Modern Approach
The ABCs of Political Economy is an accessible introduction to modern political economy. While informed by the work of Marx, Keynes, Veblen, Kalecki and other great political economists, Robin Hahnel teaches the reader the essential tools necessary to understand economic issues today from a modern perspective, searching for ways to replace the economics of competition and greed with the economics of equitable co-operation. The ABCs of Political Economy empowers people who are dissatisfied with today's economies but are often intimidated by conventional economic analysis. No previous economics background is assumed, and everything is explained in verbal form in eight core chapters.Examining the nature of today's economic market, issues of economic justice, macroeconomics and globalization, Robin Hahnel provides an ideal introduction to key economic ideas, offering a critical perspective on our present system and outlining clear alternatives for the future.
320 pages, Paperback
First published January 1, 2002
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596 people want to read
About the author
Robin Hahnel
35 books50 followersRobin Eric Hahnel (born March 25, 1946) is Professor of Economics at Portland State University. He was a professor at American University for many years and traveled extensively advising on economic matters all over the world. He is best known for his work on participatory economics with Z Magazine editor Michael Albert.
Hahnel is a radical economist and political activist. Politically he considers himself a product of the New Left and is sympathetic to libertarian socialism. He has been active in many social movements and organizations for forty years, notably as a participant in student movements opposed to the American invasion of South Vietnam, more recently with the Southern Maryland Greens, a local chapter of the Maryland Green Party, and the Green Party of the United States. Hahnel's work in economic theory and analysis is informed by the work of Marx, Keynes, Piero Sraffa, Michał Kalecki, and Joan Robinson, among others. He has served as a visiting professor or economist in Cuba, Peru, and England.
Hahnel is a radical economist and political activist. Politically he considers himself a product of the New Left and is sympathetic to libertarian socialism. He has been active in many social movements and organizations for forty years, notably as a participant in student movements opposed to the American invasion of South Vietnam, more recently with the Southern Maryland Greens, a local chapter of the Maryland Green Party, and the Green Party of the United States. Hahnel's work in economic theory and analysis is informed by the work of Marx, Keynes, Piero Sraffa, Michał Kalecki, and Joan Robinson, among others. He has served as a visiting professor or economist in Cuba, Peru, and England.
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Displaying 1 - 17 of 17 reviews
May 28, 2009
This is an overview of economic theory from the point of view of a radical political economist. Hahnel includes a few chapters with simple economic models -- by this I mean that he describes an aspect of an economic system in an equation or set of equations that illuminates the relationships between different aspects of the system; for example, in one model he demonstrates mathematically why, if resources are not distributed equally to begin with, a credit or wage market will tend to increase efficiency but exacerbate inequality. Since I spend the majority of my working days thinking about natural systems in a mathematical way, I really appreciated that part of the book. However, if that's not your cup of tea, these chapters can easily be skipped.
The remainder of the book explains the dynamics of market economics in more real-world terms. It includes plenty of examples, and is well-written for an attentive beginner, i.e. he really explains the jargon. Much of the book covers the same material that I imagine is in a college introductory micro/macro-economics sequence, but here there are no apologies for capitalism, and Hahnel explains some of the vital (and completely unfounded) assumptions that mainstream economists make when they defend free markets.
This book is by no means light reading -- it was my bus book for about two months -- but I highly recommend it for anyone who wants to better understand economics and is willing to put in a bit of effort.
The remainder of the book explains the dynamics of market economics in more real-world terms. It includes plenty of examples, and is well-written for an attentive beginner, i.e. he really explains the jargon. Much of the book covers the same material that I imagine is in a college introductory micro/macro-economics sequence, but here there are no apologies for capitalism, and Hahnel explains some of the vital (and completely unfounded) assumptions that mainstream economists make when they defend free markets.
This book is by no means light reading -- it was my bus book for about two months -- but I highly recommend it for anyone who wants to better understand economics and is willing to put in a bit of effort.
June 4, 2012
(9/10) More than just an introductory textbook, what Robin Hahnel offers up with The ABCs of Political Economy is an entirely different starting place for economics. He lays the groundwork here for a kind of leftist economics system that escapes both the oversights of conventional capitalist economics and the formalism of Marxist approaches, creating a system which is primarily concerned with *gasp* the way in which people actually live. Before this I had written off contemporary economics as modern phrenology, but Hahnel shows a way in which they could potentially be useful. Some of the examples are mathematically complex, but other than that this book is accessible to neophytes, and is one of those books which is great not so much for its own insights but for creating a new space for thought.
June 18, 2019
[Note: this review is for the revised and expanded edition from 2014]
While not a 'rigorous' introduction to economics and political economy, Hahnel does a great job surveying a number of basic concepts and theories, as well as applications of some simple models to real-world problems for readers with little or no background in either economics or political economy.
Hahnel's objective is to pick out of mainstream economics what is of value to understanding issues ranging from the direction of technological change and distribution of income to differing macroeconomic policies and the economics of climate change, all while simultaneously critiquing textbook theory both from the perspective of its own assumptions - perfect competition, perfect information, zero externalities and transaction costs, etc. - as well from a number of heterodox economic perspectives.
However, this book's strength is also its weakness insofar as it merely offers a sampling of models without much of an analytical and/or methodological toolkit for readers to take with them into the world. It isn't just having a toy model of some social phenomena, but understanding how that model is derived, applied, and most of all tested which distinguishes social science from mere armchair theory; for that, you invariably need long digressions and recourse to mathematical proofs and/or empirical studies, which probably turns most readers off immediately. And by the end, where he offers conjectures on alternative (if laudable) political economic arrangements, there is little offered as evidence of feasibility or desirability for each other than it not being 'neoliberal capitalism'.
Overall, a great introductory text to radical political economy, but by no means definitive and certainly not a perfect substitute for a dedicated textbook in economics.
While not a 'rigorous' introduction to economics and political economy, Hahnel does a great job surveying a number of basic concepts and theories, as well as applications of some simple models to real-world problems for readers with little or no background in either economics or political economy.
Hahnel's objective is to pick out of mainstream economics what is of value to understanding issues ranging from the direction of technological change and distribution of income to differing macroeconomic policies and the economics of climate change, all while simultaneously critiquing textbook theory both from the perspective of its own assumptions - perfect competition, perfect information, zero externalities and transaction costs, etc. - as well from a number of heterodox economic perspectives.
However, this book's strength is also its weakness insofar as it merely offers a sampling of models without much of an analytical and/or methodological toolkit for readers to take with them into the world. It isn't just having a toy model of some social phenomena, but understanding how that model is derived, applied, and most of all tested which distinguishes social science from mere armchair theory; for that, you invariably need long digressions and recourse to mathematical proofs and/or empirical studies, which probably turns most readers off immediately. And by the end, where he offers conjectures on alternative (if laudable) political economic arrangements, there is little offered as evidence of feasibility or desirability for each other than it not being 'neoliberal capitalism'.
Overall, a great introductory text to radical political economy, but by no means definitive and certainly not a perfect substitute for a dedicated textbook in economics.
August 14, 2018
Markets and hierarchical decision making economize on the use of valuable but scarce human traits like 'feelings of solidarity with others, the ability to emphatize, the capacity for complex communication and collective decision making. But more importantly, we must consider about the trust and participation across all. Because markets bribe us with the lure of luxury beyond what others can have and beyond what we know we deserve. Markets reward those who are the most efficient taking advantage of their fellow, and penalize those who insist, illogically, on pursuing the golden rule- do unto others as you would have them do unto you. "Its really survival of the fittest here. If you have a cutthroat heart, you can make it, if you are a good person, i dont think you can".
http://karinaoktriastra.blogspot.com/...
http://karinaoktriastra.blogspot.com/...
September 2, 2008
A fantastic overview of contemporary radical economics. Hahnel presents a solid framework for understanding the meaning of economic justice, a penetrating critique of markets and private ownership of the means of production, and a strong debunking of the myths about capitalist globalization. This book is an invaluable resource for leftists who want to effectively debate and analyze economic issues.
January 19, 2016
Several times I took up the challenge to read an economics introductory book. I've read "naked economic" before and Robin Hahnels book was way deeper but not as well written. Still I preferred The ABCs of Political Economy, as it explains a lot of relations in modern economics from a qualitative AND quantitative perspective. Also Robin Hahnel identifies the problems of modern economics and gives a guide how to change economics to make people more socially equal. Very nice book!
March 4, 2013
Good read about the unwarranted assumptions of mainstream economic theory. Is more theoretical knowledge than practical. The chapters on micro and macro models are especially interesting.
July 28, 2020
This book is a good introductory text, covering a broad ground in a simple and intuitive manner. It lays out a strong narrative - the author is trying to lay bare the inefficiencies and other deficiencies of unfettered, laissez-faire capitalism, and for the most part he does a reasonable job. A wide range of topics are covered - mainstream economic ideas such as the work of Keynes, Adam Smith and Milton Friedman, and the dynamics of international trade; as well as some niche political economists such as Pietro Sraffa. Having presented these ideas, the author does well to lay out how they conflict with classical liberal economics, as well as policies now espoused by neoliberalism - balanced budgets, fiscal austerity and the terms imposed by the IMF during bailouts.
Most of the book (all but the final chapter) is focused on describing these mainstream economic ideas, and for the most part this is very readable (in places the prose repeats itself, and some paragraphs are clearly copied and pasted with a few words changed, which can bog the reader down a little). Having a laid out the issues with capitalism over the course of the book, the concluding chapter is dedicated to suggestions for alternatives. This is where the book is at its weakest - rather than explaining existing ideas, most of this is fresh ground (although taken from the author's previous work). Some of the standard reforms of capitalism such as a strong social safety net, taxes on emissions and a living wage are familiar and have already been implemented in some countries. However, the book's final conclusions revolve around replacing capitalism entirely with a 'participatory economy', which is presented as a bureaucratic hive of councils built on councils (neighbourhood consumer's councils, consumer federations, workers councils and federations and an Iteration Facilitation Board). Given the criticism laid onto 20th century communism as (among other things) conducive to bureaucratic cronyism in the ruling party, it's bizarre that the advocated solution involves a similar central planning system, complete with 1984-esque names.
Nonetheless, on the whole this is a very useful book. It's unapologetically partisan in places, and some of the conclusions are sketchy, but it's a strong introduction into the prevalent economic ideas in the world today, and some of the problems with them.
Most of the book (all but the final chapter) is focused on describing these mainstream economic ideas, and for the most part this is very readable (in places the prose repeats itself, and some paragraphs are clearly copied and pasted with a few words changed, which can bog the reader down a little). Having a laid out the issues with capitalism over the course of the book, the concluding chapter is dedicated to suggestions for alternatives. This is where the book is at its weakest - rather than explaining existing ideas, most of this is fresh ground (although taken from the author's previous work). Some of the standard reforms of capitalism such as a strong social safety net, taxes on emissions and a living wage are familiar and have already been implemented in some countries. However, the book's final conclusions revolve around replacing capitalism entirely with a 'participatory economy', which is presented as a bureaucratic hive of councils built on councils (neighbourhood consumer's councils, consumer federations, workers councils and federations and an Iteration Facilitation Board). Given the criticism laid onto 20th century communism as (among other things) conducive to bureaucratic cronyism in the ruling party, it's bizarre that the advocated solution involves a similar central planning system, complete with 1984-esque names.
Nonetheless, on the whole this is a very useful book. It's unapologetically partisan in places, and some of the conclusions are sketchy, but it's a strong introduction into the prevalent economic ideas in the world today, and some of the problems with them.
April 17, 2025
Even though I don’t agree with all of his points, it’s REALLY good as an introduction to political economy, key economic concepts and how economic theories have developed throughout the history (and why)
June 3, 2015
The book is a new and updated edition of a book written in 2002. In many ways it is timely in light of the fiscal crisis. He does a reasonable job of constructing simple models that would be familiar to neoclassical economists, but uses the models to draw very different conclusions about wealth and income distribution.
There are parts that are pretty dense, and in several cases the author refers to passages from the previous edition that were removed because they were tedious and impenetrable. Not enough of that was done. I had to re-read the section on Sraffa several times. I read Production of Commodities by Means of Commodities back in the 1980s, but felt like I was missing something. It was about time someone addressed the flaws in the Ricardian / Marxian labor theory of value, but I wasn't sure Sraffa accomplished it. Then on about my third reading of Hahnel, it finally sank in. With Sraffa's model, two important conclusions are inescapable: capitalists will not always adopt the technologies that are best for society or even the most efficient if capital is scarce and labor is abundant. They can produce commodities more cheaply but not more efficiently as long as they can keep wages from rising with productivity in Sraffa's model. In other words, there is a tendency to hoard capital when workers have any kind of bargaining power. the other conclusion that follows from that is that wages and returns on investment are a zero-sum game. In some ways, this provides a theoretical basis for the empirical work of Piketty, who has shown that wages have stagnated while wealth has become increasingly concentrated.
Hahnel makes a case for Keynesian fiscal policy and an industrial restructuring that is based on cooperatives and worker-owned enterprises. The author would do well to go beyond preaching to the converted and look for ways to bring his political economy to the political system. In the post-Citizens United US, it will be extremely difficult to elect a government that is interested in raising the incomes of most people because doing so will come at the expense of getting a greedy elite to share their wealth--something not likely to happen.
There are parts that are pretty dense, and in several cases the author refers to passages from the previous edition that were removed because they were tedious and impenetrable. Not enough of that was done. I had to re-read the section on Sraffa several times. I read Production of Commodities by Means of Commodities back in the 1980s, but felt like I was missing something. It was about time someone addressed the flaws in the Ricardian / Marxian labor theory of value, but I wasn't sure Sraffa accomplished it. Then on about my third reading of Hahnel, it finally sank in. With Sraffa's model, two important conclusions are inescapable: capitalists will not always adopt the technologies that are best for society or even the most efficient if capital is scarce and labor is abundant. They can produce commodities more cheaply but not more efficiently as long as they can keep wages from rising with productivity in Sraffa's model. In other words, there is a tendency to hoard capital when workers have any kind of bargaining power. the other conclusion that follows from that is that wages and returns on investment are a zero-sum game. In some ways, this provides a theoretical basis for the empirical work of Piketty, who has shown that wages have stagnated while wealth has become increasingly concentrated.
Hahnel makes a case for Keynesian fiscal policy and an industrial restructuring that is based on cooperatives and worker-owned enterprises. The author would do well to go beyond preaching to the converted and look for ways to bring his political economy to the political system. In the post-Citizens United US, it will be extremely difficult to elect a government that is interested in raising the incomes of most people because doing so will come at the expense of getting a greedy elite to share their wealth--something not likely to happen.
March 10, 2010
I passed over many of this book's chapters due to unshared economic assumptions and/or mathematical demands, but its chapter four on the Laws of Supply and Demand provided a wonderful explanation of the radical individualism inherent in free market analyses. This discussion will stick with me nicely.
February 28, 2008
Robin Hahnel is clearly the best writer in the Parecon crew. Even if you don't agree with everything, his clarity and reasoning is always welcome. He manages to explain a host of economic models in a way where everyone can understand.
December 26, 2013
Alternatif bir piyasa önerisi nasıl olur ve Adam Smith'den bu yana piyasada var olan aksaklıklar,türlü kandırmacalar nelerdir,bunları öğrenmek adına temel oluşturan güzel bir kitap...Ancak çok uç fikirlerin öne sürüldüğünü de kabul etmek lazım...
November 27, 2011
One of books I read to get to know economy a little bit. Easy to read, even for people like me who never majored in economics.
November 14, 2016
sounds parecon but ok
November 29, 2016
A great alternative take on economics that does well to try and displace common economic assumptions in order to bring dogmatic economics back to the more substantial "political economy."
January 28, 2016
Professor Hahnel predicted a world financial meltdown well before anyone....
Displaying 1 - 17 of 17 reviews