By Rand McGreal
Rating: 4 out of 5 stars
My Dinner with Andre with economists.
Does anyone remember the 1981 film
My Dinner With Andre?
It was a surprise hit about two men talking over dinner. That was it.
But it was utterly fascinating with the two men discussing slightly
alternating views on life.
Rand McGreal uses a similar but
ultimately fundamentally different conceit to espouse his views of
economics. In this fictional essay that is presumably meant to introduce
the economic theories of Richard Cantillon to the layman, McGreal is at
an impasse on his book about the 18th century economist. While he is
sitting in a Seattle restaurant, he is greeted by what appears to be an
eccentric homeless person who confidentially has the same name as the
economist. But eventually McGreal comes to believe it is the same person
and they have a discussion about economics and the financial state of
our modern society. Unlike
My Dinner with Andre, McGreal and
Cantillon are soon walking around Seattle and McGreal is taking as much
delight in introducing Cantillon to 21st century America as Cantillon
is having correcting McGreal interpretations of his ideas.
In
the preface, McGreal warns the reader to "do not judge the book by the
vehicle of communication, but the ideas you meet." Well, I'm a book
reviewer, not an economist. So the quality of the communication is an
essential if not over-riding part of my judgement. But McGreal need not
worry for he is an excellent communicator taking ideas that may seem dry
to some readers and presenting them in an entertaining way. If
McGreal's goal is to popularize the theories of Cantillon, he appears to
have a good start. I found this short book very easy to read despite
its topic and had a few smiles along the way.
Yet it is clear
that the author wishes to persuade too. The economic theories of
Cantillon, and of the author's, state that wealth is a product of
entrepreneurs not the government. He decries the Keynesian position that
government spending and regulation of interest rates will ever produce
productivity and relieve us from our financial dilemma. There's a lot
more but I think I presented a simple summary well enough. I think it is
safe to say the author takes a relatively Libertarian stance on the
role of government in free enterprise.
As I said, I'm not an
economist. My university background was in Sociology which I would say
has an uncomfortable relationship with economics. Most social scientists
feel that Economists spend to much attention to abstract numbers rather
than to the twists and turns of human nature and social patterns. I'm
also sure most economists would disagree with this. Back in the late
70s, a finance analyst friend who was quite knowledgeable in economics
told me I knew nothing about the field. He was probably right. But since
he also told me that simultaneous high inflation and high unemployment
was an impossibility a few months before the nation became entrenched in
the simultaneous rise in inflation and unemployment made me wonder
about his own knowledge. Of course, I do not hold that against the
author. I'm just stating I take economic truths with a grain of salt
just as I do other soft sciences including sociology and psychology. I
would wonder aloud to Mr McGreal and ghostly Cantillon whether their
viewpoint of entrepreneurship, which makes sense to me up to a certain
point, still hold when those bastions of free enterprise become
multi-national corporations that operate as a government unto
themselves. Can it be said that massive corporations primarily produce
wealth through products rather than having the only goal of increasing
wreath (meaning money in this case) for their constituents in any way,
shape or form?
But I digress a bit and I do reveal my own bias
which is perfectly fine. The main point is that McGreal writes a fully
delightful romp that expresses his views with clarity and insight
without being dull. Not only that, but he also gives this admittedly
Keynes (and Krugman) biased layman a lot to think about. If you have the
slightest interest in economics and the financial state of the world,
this is essential reading. Even if you don't, it is worth a try. The
ending leaves open the possibility of other dialogues with historical
figures in economics and I welcome such endeavors.
One more thing I learned. When in Seattle, hunt down the first Starbucks and look for those Minimus/Maximus food trucks!
Method acquired: Goodreads Firstreads