Economic Conditions

Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism

The bestselling author reveals how the U.S. financial sector has hijacked our economy and put AmericaÂ’s global future at risk

In American Theocracy, Kevin Phillips warned us of the perilous interaction of debt, financial recklessness, and the increasing cost of scarce oil. The current housing and mortgage debacle is proof once more of Phillips’s prescience, and only the first harbinger of a national crisis. In Bad Money, Phillips describes the consequences of our misguided economic policies, our mounting debt, our collapsing housing market, our threatened oil, and the end of American domination of world markets. America’s current challenges (and failures) run striking parallels to the decline of previous leading world economic powers—especially the Dutch and British. Global overreach, worn-out politics, excessive debt, and exhausted energy regimes are all chilling signals that the United States is crumbling as the world superpower.

“Bad money” refers to a new phenomenon in wayward megafinance—the emergence of a U.S. economy that is globally dependent and dominated by hubris-driven financial services. Also “bad” are the risk miscalculations and strategic abuses of new multitrillion-dollar products such as asset-backed securities and the lure of buccaneering vehicles like hedge funds. Finally, the U.S. dollar has been turned into bad money as it has weakened and become vulnerable to the world’s other currencies. In all these ways, “bad” finance has failed the American people and pointed U.S. capitalism toward a global crisis. Bad Money is the perfect follow- up to Phillips’s last book, whose dire warnings are now proving frighteningly accurate.

Nickel and Dimed: On (Not) Getting By in America

Essayist and cultural critic Barbara Ehrenreich has always specialized in turning received wisdom on its head with intelligence, clarity, and verve. With some 12 million women being pushed into the labor market by welfare reform, she decided to do some good old-fashioned journalism and find out just how they were going to survive on the wages of the unskilled--at $6 to $7 an hour, only half of what is considered a living wage. So she did what millions of Americans do, she looked for a job and a place to live, worked that job, and tried to make ends meet.

As a waitress in Florida, where her name is suddenly transposed to "girl," trailer trash becomes a demographic category to aspire to with rent at $675 per month. In Maine, where she ends up working as both a cleaning woman and a nursing home assistant, she must first fill out endless pre-employment tests with trick questions such as "Some people work better when they're a little bit high." In Minnesota, she works at Wal-Mart under the repressive surveillance of men and women whose job it is to monitor her behavior for signs of sloth, theft, drug abuse, or worse. She even gets to experience the humiliation of the urine test.

So, do the poor have survival strategies unknown to the middle class? And did Ehrenreich feel the "bracing psychological effects of getting out of the house, as promised by the wonks who brought us welfare reform?" Nah. Even in her best-case scenario, with all the advantages of education, health, a car, and money for first month's rent, she has to work two jobs, seven days a week, and still almost winds up in a shelter. As Ehrenreich points out with her potent combination of humor and outrage, the laws of supply and demand have been reversed. Rental prices skyrocket, but wages never rise. Rather, jobs are so cheap as measured by the pay that workers are encouraged to take as many as they can. Behind those trademark Wal-Mart vests, it turns out, are the borderline homeless. With her characteristic wry wit and her unabashedly liberal bent, Ehrenreich brings the invisible poor out of hiding and, in the process, the world they inhabit--where civil liberties are often ignored and hard work fails to live up to its reputation as the ticket out of poverty. --Lesley Reed

The Shock Doctrine: The Rise of Disaster Capitalism

Naomi Klein's The Shock Doctrine advances a truly unnerving argument: historically, while people were reeling from natural disasters, wars and economic upheavals, savvy politicians and industry leaders nefariously implemented policies that would never have passed during less muddled times. As Klein demonstrates, this reprehensible game of bait-and-switch isn't just some relic from the bad old days. It's alive and well in contemporary society, and coming soon to a disaster area near you.

"At the most chaotic juncture in Iraq'' civil war, a new law is unveiled that will allow Shell and BP to claim the country's vast oil reserves… Immediately following September 11, the Bush Administration quietly outsources the running of the 'War on Terror' to Halliburton and Blackwater… After a tsunami wipes out the coasts of Southeast Asia, the pristine beaches are auctioned off to tourist resorts… New Orleans residents, scattered from Hurricane Katrina, discover that their public housing, hospitals and schools will never be re-opened." Klein not only kicks butt, she names names, notably economist Milton Friedman and his radical Chicago School of the 1950s and 60s which she notes "produced many of the leading neo-conservative and neo-liberal thinkers whose influence is still profound in Washington today." Stand up and take a bow, Donald Rumsfeld.

There's little doubt Klein's book--which arrived to enormous attention and fanfare thanks to her previous missive, the best-selling No Logo, will stir the ire of the right and corporate America. It's also true that Klein's assertions are coherent, comprehensively researched and footnoted, and she makes a very credible case. Even if the world isn't going to hell in a hand-basket just yet, it's nice to know a sharp customer like Klein is bearing witness to the backroom machinations of government and industry in times of turmoil. --Kim Hughes

The End of Poverty: Economic Possibilities for Our Time

Celebrated economist Jeffrey Sachs has a plan to eliminate extreme poverty around the world by 2025. If you think that is too ambitious or wildly unrealistic, you need to read this book. His focus is on the one billion poorest individuals around the world who are caught in a poverty trap of disease, physical isolation, environmental stress, political instability, and lack of access to capital, technology, medicine, and education. The goal is to help these people reach the first rung on the "ladder of economic development" so they can rise above mere subsistence level and achieve some control over their economic futures and their lives. To do this, Sachs proposes nine specific steps, which he explains in great detail in The End of Poverty. Though his plan certainly requires the help of rich nations, the financial assistance Sachs calls for is surprisingly modest--more than is now provided, but within the bounds of what has been promised in the past. For the U.S., for instance, it would mean raising foreign aid from just 0.14 percent of GNP to 0.7 percent. Sachs does not view such help as a handout but rather an investment in global economic growth that will add to the security of all nations. In presenting his argument, he offers a comprehensive education on global economics, including why globalization should be embraced rather than fought, why international institutions such as the United Nations, International Monetary Fund, and World Bank need to play a strong role in this effort, and the reasons why extreme poverty exists in the midst of great wealth. He also shatters some persistent myths about poor people and shows how developing nations can do more to help themselves.

Despite some crushing statistics, The End of Poverty is a hopeful book. Based on a tremendous amount of data and his own experiences working as an economic advisor to the UN and several individual nations, Sachs makes a strong moral, economic, and political case for why countries and individuals should battle poverty with the same commitment and focus normally reserved for waging war. This important book not only makes the end of poverty seem realistic, but in the best interest of everyone on the planet, rich and poor alike. --Shawn Carkonen

A landmark exploration of the way out of extreme poverty for the worldÂ’s poorest citizens

Among the most eagerly anticipated books of any year, this landmark exploration of prosperity and poverty distills the life work of an economist Time calls one of the worldÂ’s 100 most influential people. SachsÂ’s aim is nothing less than to deliver a big picture of how societies emerge from poverty. To do so he takes readers in his footsteps, explaining his work in Bolivia, Russia, India, China, and Africa, while offering an integrated set of solutions for the interwoven economic, political, environmental, and social problems that challenge the poorest countries. Marrying passionate storytelling with rigorous analysis and a vision as pragmatic as it is fiercely moral, The End of Poverty is a truly indispensable work.

Who's Your City?: How the Creative Economy Is Making Where to Live the Most Important Decision of Your Life

High Wire: The Precarious Financial Lives of American Families

The Coming Economic Collapse: How You Can Thrive When Oil Costs $200 a Barrel

Stephen Leeb shows how hard times can be a boon for smart investors. As the world faces an energy crisis of unprecedented scope, renowed economist Stephen Leeb shows how surging oil prices will contribute to an economic collapse. With meticulous research and analysis, Leeb shows that due to strong competition from India and China, prices could soon double, a cost for which most countries and investors are ill-prepared. Now, in this groundbreaking book, Leeb not only shows how this crisis will affect consumers, but how savvy investing can turn these dire times into financial gain.

This Land Is Their Land: Reports from a Divided Nation

The Elephant and the Dragon: The Rise of India and China and What It Means for All of Us

"A comprehensive primer on the development of these Asian tigers."—Noam Lupu, San Francisco Chronicle

The Elephant and the Dragon is the essential guide to understanding how India and China are reshaping our world. With labor now unbound from geographic borders, we're seeing startling shifts in how—and where—nearly everything we buy is made. In a compelling mix of history and on-the-ground reporting, veteran journalist Robyn Meredith untangles the complex web of business and politics, as well as environmental and cultural issues that entwine India, China, and the West. She also outlines how Americans—business leaders, workers, politicians, even parents—can understand the vast changes coming and thrive in this new age.

The Long Tail: Why the Future of Business is Selling Less of More

"The Long Tail" is a powerful new force in our economy: the rise of the niche. As the cost of reaching consumers drops dramatically, our markets are shifting from a one-size-fits-all model of mass appeal to one of unlimited variety for unique tastes. From supermarket shelves to advertising agencies, the ability to offer vast choice is changing everything, and causing us to rethink where our markets lie and how to get to them. Unlimited selection is revealing truths about what consumers want and how they want to get it, from DVDs at Netflix to songs on iTunes to advertising on Google. However, this is not just a virtue of online marketplaces; it is an example of an entirely new economic model for business, one that is just beginning to show its power. After a century of obsessing over the few products at the head of the demand curve, the new economics of distribution allow us to turn our focus to the many more products in the tail, which collectively can create a new market as big as the one we already know. The Long Tail is really about the economics of abundance. New efficiencies in distribution, manufacturing, and marketing are essentially resetting the definition of whats commercially viable across the board. If the 20th century was about hits, the 21st will be equally about niches.