Sunday, January 18, 2015

A Force for Good


Edited by John Taft


After reading this book, I actually wrote three reviews. Two of them I ended up discarding because after rereading some sections, my opinion either changed or I thought of something better to explain what I felt on reading that part of the book. That makes this the fourth review I’m writing.

The original review title was: “A step in the right direction that (unfortunately) won’t get you very far”. I went with that because I felt that the book had too many vagaries as far as actual execution of a financial plan. That is to say that I found the premise (promise?) of this book exciting: Get a bunch of qualified, serious-minded, economic thinkers and doers, and have them analyze the recent economic crisis and the current state of economic affairs so that they can then lend us an ethical and moral standard on which to base future economic activity so that everybody ends up better off and economic crises become things of the past. But in the end, they didn’t really come up with a way to make all their ideas become reality. Still the book has a lot of positives.

The list of essay writers reads like a veritable who’s who of economic thought, which raises the expectations higher. The editor, himself a leading economic thinker, explains how the book came into being and what it is trying to accomplish, and then, we plunge right in.

The chapters and essays come steadily and relentlessly with many being quite short and concise. Some essays provide history lessons, some just analysis, some a combination thereof. All of them present some ideas for avoiding financial crises in the future.  Most are very dry, but everything was quite readable. The common tenet throughout the book is, companies and individuals who are entrusted with other people’s money need to act responsibly, not be greedy, and use a moral and high ethical approach to business. It sounds good, and more than a few of the contributors make it sound achievable. A number of the essays, however, fall back on legislation and legislating bodies (politicians) as the way to go, but given the current pusillanimous state of Congress, those ideas (I thought) fell flat.


That is to say, there is absolutely nothing wrong with any of the ideas and proposals and supporting theoretical arguments that are presented en masse by the great thinkers assembled here, except, there is no plan of execution and nobody is going to undertake it upon himself or herself to be the one to start the great “ethical economics at any cost” movement. (For one, it’s hard to make much money doing that.) I like what the writers have to say for the most part, and I like the presentation and concept of this book. Ultimately though, high-minded does not always result in high-achieving. Of course, we want our financial advisors and consultants to behave themselves. Of course we all want to play win-win games that benefit everybody. Of course, we want to be part of something that is great and beneficial to all of mankind. Unfortunately, we are all human, and none of the writers has a clear concept of how we can motivate people to ignore their own profitability and success and sacrifice it for something else. (After all, as a member of society, if I make myself a little better off, isn’t society a little better off for my achievement, as long as I haven’t taken something from another member of my society?) In the end, I give this book three dollar marks for its readability and for being a highly informative book. I just don’t think it is all that good.

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