Hard Heads, Soft Hearts: Tough-Minded Economics for a Just Society

Blinder rather superbly shows how sound economic policy needn't depend on soft heads and soft hearts (a defect of liberal policy makers) nor hard hearts and hard heads(a defect of conservative policy makers). Readers of the book will realize that politicians too often force false compromises onto voters. It is possible to enact policies that are good for individuals and corporation, rich and poor. Sadly, it is not economic theory that is lacking, but political will.This book should be required reading for new voters.

Mr. Blinder does a great job of setting forth sound economic policies that should be adopted by any nation. His chapter on protecting the environment was particularly enlightening. However, I disagree with him on one very specific issue:- On page 63, Mr. Blinder argues that employees should get a share of a company's net income rather than a fixed wage rate. This is no less than a recipe for disaster. How do you define a company's net income? Upper management would spend most of its time devising ways to understate their results while employees would make a great effort to dispute the company's income statement. In the end the holy grail of economic efficiency would be lost as both parties squabble endlessly. Just look how easily Enron cooked its books.What really struck me as fantastic was Mr. Blinder's brilliant if unintentional critique of American style democracy. He did this by showing how often the American political process produces mediocre results that fly in the face of simple economics. He turns the spotlight on the damaging effects of lobbying by powerful groups and their vested interests. This was particularly apparent in his chapter on tax reform.I recommend this title to anyone who is interested in setting society on the road to prosperity. I would also recommend it to anyone interested in knowing just how harmful the US's corrupt brand of democracy is. Perhaps this book's greatest contribution lies in raising the following question: How can a system be devised that safeguards the ideals of democrarcy and freedom without compromising economic efficiency and equity?

Blinder renders a balanced analysis of governmental policy, criticizing Democrats and Republicans equally. I might even go as far as to say that he is objective. However, his policy prescriptions are very left-leaning. The reader will see clearly that Blinder makes many normative assumptions about the goal of policy and that those assumptions dictate unambiguously the liberal ends to which our resources and tax dollars should be directed. He gives a great explanation of how the deficit grew out of the Reagan administration's blunders, and I may even recommend this book for that alone. Overall, it is a good econ book for the initiated readers and everybody else, as it doesn't treat you like a dupe. Definitely preferable to The Armchair Economist, but you should balance your diet with a reading of Capitalism and Freedom. LEWIS GAINOR MIZZOU ECON

Blinder will have you sitting beside yourself as he challenges the public's vastly preconceived notions of the economic world. One chapter in particular draws my attention, "Who Will Protect Us From Protectionism." Although there are minor flaws in his analysis, due to recent revelations in economic free trade policy, Blinder exercises a practicality that wonderfully illustrates the need to revamp our protectionist policy. This book is a must read if you are still mislead by the notion that protectionism levels the playing field and increases American welfare.

If I were to teach an introductory economics course, this would be my first choice for a supplemental reading. Blinder does a terrific job of explaining the unique perspective that economists have on economic policy. I recommend this book frequently in conversations with people.