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Books about the history of economic thought are often dismissed as of little interest even to the economically literate reader. Theoretical discussions quickly become abstruse, and finding any human interest to leaven the diagrams and equations is often Mission Impossible. Happily, Mark Skousen's new Making Modern Economics: The Lives and Ideas of the Great Thinkers goes a long way toward remedying these typical shortcomings.
Skousen's explanations of sometimes complex theories are masterpieces of clarity. Even the untrained reader will come away from this book with an excellent understanding of the chief strains of modern economics, including the theories of Ricardo, Marx, Keynes, Friedman and many others. Interspersed with theory are amusing and unforgettable anecdotes about the economists themselves. Skousen told about Ludwig von Mises, the great leader of the Austrian school known for his implacable opposition to any form of collectivism, who was attending a meeting of the Mont Pelerin Society, a group founded by Friedrich Hayek to promote laissez-faire capitalism. The membership consisted of the world's most ardent defenders of free-market economics. At one session, Milton Friedman led a discussion about income distribution. An incensed Mises stood up and announced, "You're all a bunch of socialists!" and stomped out of the room. At a later meeting, one of Mises' favorite students, Fritz Machlup, came out in favor of flexible exchange rates instead of the gold standard. Mises became so inflamed that he refused to speak to Machlup for three years. Skousen excels at showing the reader the human side of the great theoreticians. Irving Fisher of Yale, who made a famous prediction of prosperity on the eve of the Great Depression, lost everything in the crash and never made it back. His final venture was a peculiar three-legged chair that he attempted, unsuccessfully, to sell to Sears Roebuck. Yet his writings on interest rates are still masterpieces of theory and exposition. Skousen revels in his subject, and writes with the light touch of one who has mastered his field and enjoys sharing his enthusiasm. He treats the reader to clever chapter titles and even suggested musical accompaniments. The book can be read straight through or browsed for a few pages at a time. For anyone interested in the history of economics, this is a perfect place to start. (M.E. Sharpe, 2001, 504 pages, $29.95) |
A college professor and author, Skousen has produced a witty and sophisticated history of economics from Adam Smith to the conservative counterrevolution of the late 20th century. The book is organized around Smith, whom Skousen believes to be the greatest of economists and the principal architect of the impressive structure of modern economic theory. The author considers the contributions of all of the major economists of the last 200 years as they react to, attempt to demolish, and ultimately expand the model originally expounded by the Scottish master.
