The Contours of Descent: Us Economic Fractures and the Landscape of Global Austerity [Hardcover]

Mr. Pollin is a Professor at the University of Massachusetts-Amherst. The humanity and practicality that infuses this book is no doubt a reflection of Mr. Pollin's real world experiences, which includes work on developing living wage proposals in various U.S. cities, serving as a consultant to the United Nations Development Program in Bolivia, and as Economic Spokesperson to the 1992 Presidential campaign of Governor Jerry Brown.

Neoliberalism is defined by the "Washington consensus" of decreased government spending, free trade and deregulated markets. Mr. Pollin critiques the system for its three major defects: The "Marx problem" pertaining to the relative bargaining relationship between employers and workers; the "Keynes problem" of the tendency of financial markets to engage in speculation; and the "Polanyi problem" of the corrupting effect of corporate power.

The author builds a convincing case that all three problems have been exacerbated by neoliberalist policies, resulting in a host of deleterious effects. These include widening gaps between the rich and poor (Marx), speculative bubbles in the financial markets (Keynes), accounting scandals (Polanyi), and others. Moreover, the author provides research to show that the cumulative effect of these policies has been to slow world economic growth, thereby undoing years of progress and preventing many developing nations from significantly raising living standards for their citizens.

Mr. Pollin critiques the Clinton administration and Robert Rubin in particular for championing financial market deregulation as the linchpin for its "Eisenhower Republican" economic strategy. The author is presuasive in detailing how the stock market boom of the 1990s provided fuel for the economic boom; unfortunately, its demise quickly erased most of the gains attributed to the Clinton economy, such as a real decrease in the number of persons living in poverty. In fact, the author suggests that the single-minded pursuit of a balanced budget allowed Clinton to squander a historic opportunity to use surplus government dollars to invest in education, healthcare and the environment --programs that the author believes are critical to creating a more durable kind of prosperity for the American people.

Mr. Pollin launches a no less scathing critique of the Bush administration's policies, which the author believes have been designed to be little more than a "bonanza to the rich" at the expense of workers. The author explains that crisis has been used by Bush to justify giveaways to corporations and the wealthy; meanwhile, aggressively anti-labor and anti-environmental policies have further squeezed living standards for most. Furthermore, by highlighting the inconsistencies in Bush's budget proposals, Mr. Pollin suggests that the administration is intent on creating a fiscal crisis in order to force a dismantling of the populist social safety net.

One section that I found particularly interesting was Mr. Pollin's discussion of stimulating the economy by means of defense spending and the Iraq war. His analysis of the situation however suggests that the occupation of Iraq will further slow the U.S. economy as a whole but will benefit specific corporations engaged in the production and distribution of oil, thereby calling into question the real motives for the war.

Mr. Pollin dedicates a chapter examining the "landscape of global austerity" that has resulted from Washington's imposition of neoliberal policies onto the developing world. The analysis focuses on case studies in India, Argentina and elsewhere to highlight the human costs of the neoliberal experiment in specific countries. For example, the author shows how Asian sweatshop bosses have repressed their workers in order to gain competitive advantage for their export-oriented economies. The author argues that "policies to eliminate sweatshops and guarantee workers decent...minimum wages" are needed to narrow inequality, restore impoverished communities and develop new markets.

The final chapter explores the author's alternative economic policies more fully. The recommendations include full-employment policies, living wages and labor rights to solve the Marx problem, and financial system regulation, taxation, and increased banking reserve requirements to solve the Keynes problem. The issue is one of morality as well. Recalling Adam Smith, the author suggests that continuing with the failed neoliberal experiment of privileging the interests of capital over the rights of people amounts to "corruption of moral sentiments on a global scale" and should rightly yield to an economics dedicated to equity and social justice.

I strongly recommend this powerful, insightful and humane book to everyone.

While Pollin takes on the shameless economic policies of Bush - rewarding the rich at the expense of everyone else - he also argues strongly against Paul Krugman or other apologists for Clinton. Arguing that essentially both Bush and Clinton (and Greenspan throughout) have operated under the same absolute Washington 'Consensus' ideas about the economy, he shows how these ideas have led to greater inequalities in US society and worse conditions for the average American. The fabulous decade (the late nineties) were really just a "hollow boom." He also explains how neoliberalism has been a disaster for the developing world.

But its not all gloom and doom. Pollin has a chapter on simple and proven economic changes that could be achieved and which would not only give every American a fairer chance, but would boost the economy at the same time. If you want great background reading to Democrats economic proposals for the 2004 elections - and any real and achievable change - read this book !!!