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False Economy: A Surprising Economic History of the World Paperback – 24 Jun 2010

4.1 out of 5 stars 16 customer reviews

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Product details

  • Paperback: 336 pages
  • Publisher: Penguin (24 Jun. 2010)
  • Language: English
  • ISBN-10: 0141033703
  • ISBN-13: 978-0141033709
  • Product Dimensions: 12.9 x 2 x 19.8 cm
  • Average Customer Review: 4.1 out of 5 stars  See all reviews (16 customer reviews)
  • Amazon Bestsellers Rank: 462,284 in Books (See Top 100 in Books)

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Review

"New York Times" Bestseller

"A thorough examination of economies from the age of empire to the age of the IMF... Beattie's analysis dazzles." -- "The Washington Post"

"Beattie, who studied history at Oxford University and economics at Cambridge, draws on both disciplines to overturn assumptions about the evolution of the global economy... "False Economy" is full of insightful nuggets." -- "BusinessWeek"

"Provocative... It would be fun to talk with Mr. Beattie at a dinner party." -- "The New York Times"

"Beattie's analytics show that facts can be a force for change. Give people hte facts, and they'll do the right thing." -- Bono

"A fascinating and insightful book." -- Mohamed A. El-Erian, CEO, PIMCO, and author of "When Markets Collide"

"New York Times" Bestseller
"A thorough examination of economies from the age of empire to the age of the IMF... Beattie's analysis dazzles." -- "The Washington Post"
"Beattie, who studied history at Oxford University and economics at Cambridge, draws on both disciplines to overturn assumptions about the evolution of the global economy... "False Economy" is full of insightful nuggets." -- "BusinessWeek"
"Provocative... It would be fun to talk with Mr. Beattie at a dinner party." -- "The New York Times"
"Beattie's analytics show that facts can be a force for change. Give people hte facts, and they'll do the right thing." -- Bono
"A fascinating and insightful book." -- Mohamed A. El-Erian, CEO, PIMCO, and author of "When Markets Collide" --This text refers to an out of print or unavailable edition of this title.

About the Author

After graduating with a degree in history from Balliol College, Oxford, Alan Beattie took a master's degree in economics at Cambridge. He worked as an economist at the Bank of England until 1998 when he joined the Financial Times. He is currently the world trade editor of the Financial Times.


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4.1 out of 5 stars
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Format: Hardcover
As axiom-based and model-driven economics met its ignominious fate, economic history jocks emerged, ready to hawk alternative (hi)stories to the bemused public. Few such products are of lasting value: and this in not one of them.

The underlying theme of the book is that economic development is path-dependent - which is another way of saying: `historical phenomenon'. Decisions are taken, and they have consequences. Once basic decisions are taken, it is difficult to reverse them. Some decisions turn out to be wise (Botswana), some foolish (Zambia or Sierra Leone). Most, however, were inadvertent. "It seemed like a good idea at the time" - most politicians criticised in the book would have answered. So what else is new? History is a heady mix of structure and contingency. Contingency dominates. Small causes can make a big difference. Nothing is pre-determined. So we cannot `learn' from Botswana's experience or, put it another way, we would not even be able to replicate it in Botswana itself if we were to rewind the tape of history and let it out again (S. J. Gould on evolution).

The economic history served up as `surprising truth' is either blandly formulated received knowledge, or superficial criticism. Take the chapter on trade: Venice and Genoa grew wealthy on trade? Well - they'd exploited beforehand their respective salt monopolies in Comacchio and Hyeres to the hilt. Florence became a banking centre? Hmm - only after a surreptitious and systematic debasing of the coin had impoverished the countryside in favour of the centre. England grew strong on overseas trade?
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Format: Hardcover
Clearly Alan Beattie can put together a series of anecdotes well enough, but therein lies the problem. Economists like this one have all appeared as if by magic over the past couple of years claiming to have all the answers. frankly the truth is something more along the lines of being wise after the event. Some parts of this were certainly educational and interesting to read about making this more of a starting off point than a destination. One cant help but get the feeling that the author (and others of similar pop-econ books) has cherry picked anecdotes and phrases. he does come close at times to wearing his capitalist heart on his sleeve, particularly when wheeling out the well worn cliche that government should "get out of the way".
In summary, there are points of interest here and there but this book is really far too superficial to be anything other than a light read.
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Format: Hardcover
If chronologically authored, an account or analytical narrative about economic history of the world would have taken-up many volumes. Instead, Alan Beattie, world trade Editor of the Financial Times, chose to employ his wit, knowledge and researching skills to conjure up this book comprising of short thematic chapters offering viewpoints coupled with historical contexts on anything from natural resources and agriculture to urbanisation and economic progress (or lack of it in some cases).

As for the element of surprise, Beattie is true to his word. He begins the narrative by fictionally staging the 9/11 attacks in Argentina and economic collapse of the U.S. Of course, in 2001 actual events occurred the other way round, but the author suggests it could so easily have been different. For most of the 19th century both nations held similar economic potential, yet the U.S. evolved into a superpower while Argentina went into near-terminal decline. He argues that such a trajectory was not preordained but down to differing employment of resources and political will. Both countries, he opines, were given "similar hands" at one point in history, but played them very differently.

Continuing down this path, Beattie offers a similar type of analysis about why, for instance, abundant natural resources turn out to be a curse for some nations or why religion is no hindrance to economic progress or prowess of others. Spread over ten chapters, in this short book, the auther has picked and chosen his way through history, commerce, business practices, politics and religious texts to make his arguments. Chapter 2 (on urbanisation, especially in Latin America), Chapter 3 (on trade) and Chapter 4 (on natural resources) are the ones I particularly liked.
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Format: Paperback
Anybody who was expecting some relationship between this book and the popular anti-cuts website 'false economy' will be sadly disappointed. This is a totally unsurprising remix of economic orthodoxy (free trade is always good, you can't buck the market, government intervention will always go wrong), nicely illustrated with some very partial anecdotes from history. Although the apparent message of the book is that governments and societies have choices, the actual message is that you don't - you must always follow the 'free-market' path or it will end in tears. Economic laws have the validity of natural laws, which they resemble.

Curiously, the evidence to counter this thesis is right there in the very anecdotes that it recounts. The British economy took off in the early C18th as a result of the energy and capital input it received from slavery and dispossession. The US's role as sponsors of anti-labour violence in South America and elsewhere may have impacted on the country's reputation as the global champion of liberty. And so on.

Of course, what isn't the book is as revealing as what is. So lots about the ultimate failure of any strategies that try to buck the market. German and Scandinavian (or even French) capitalism might as well not exist. Singapore barely figures. Lots about China though, which has pursued the kind of free-market Leninism that he seems to admire - 'free markets' without a free society.

There are some enjoyable bits - I quite liked the bits about the East India Company, and the Anti-Corn Law League, but all of this is very partial. There are some obvious bloopers - Zaire wasn't 'part of the Democratic Republic of Congo', was it? And the conclusion, which is a belated attempt to introduce a bit of humility in the face of a rather obvious crisis of the global model he spends most of the book propounding, is thoroughly unconvincing.
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