The very fact that so few economists saw the 2008 economic collapse coming indic
ates how out of touch they were (and are) with economic realities. Enamored with
the idea that capitalism is self-correcting, they failed to heed ample warnings
of severe imbalances and risky behavior caused by lack of regulation of the fin
ancial markets. Financial journalist Madrick draws on the works of several well-
regarded economists, including John Maynard Keynes and Milton Friedman, as well
as philosopher-economist John Stuart Mills and others to examine the shortcoming
s of contemporary economics. Madrick offers an overview of how economic thinking
has evolved from Adam Smith's invisible hand concept, taking aim at seven major
ideas that have driven economists in the past 30 years and led to enormous harm
. He explores the contradictions in economic theories as economists square off o
ver philosophical beliefs about the proper role of government in the economy, th
e relative merits of deficits, and government economic stimulus.
