Fans pick 100 books like Trade and Poverty

Pistor’s book explains how global finance grew so large, powerful, and unstable. The short answer: elite lawyers did it.

Pistor argues that they did it by creatively devising legal instruments that could turn both tangible (land, for example) and intangible things (like intellectual property) into capital. When lawyers were able to make legal instruments enforceable around the world, capital could become truly global. Why did they do this? Simple: “minting” capital through creative lawyering is extraordinarily lucrative.

Before reading this book, I knew that elite contract lawyers were very well compensated, but I didn’t understand what they were doing and didn’t think of them as key players shaping the international economic order. Pistor’s book informed and corrected my thinking. 

This is a rich sourcebook on the emergence of inequality in human prehistory and history.

The authors move effortlessly across cultures from the entire globe, basing their analysis on written records, where possible, or archeological data such as buildings, art, tools, and bones. They confirm my own view that inequality is ubiquitous and that there is a tendency for it to grow over time, irrespective of the environment.

Political or religious elites have always tried to expand their power at the expense of the common man or woman, using myths about divine descent or other means of persuasion, and the majority has more or less successfully resisted such attempts.

For an armchair social scientist like myself, this wealth of data is tremendously valuable.

Discover Condorcet!

Most people, when asked to name a philosopher who wrote about inequality, would think of Rousseau. Condorcet was the last of the Encyclopédistes, young enough to experience the revolution in 1789—sadly, also one of its victims.

Unlike his philosopher colleagues, he participated actively in public policymaking, first in the Ministry of Finance, later as an elected member of the Legislative Assembly after the revolution. He chaired an organization working for the abolition of slavery. He argued for equal rights for women before Olympe de Gouges and Mary Wollstonecraft had published their more well-known pamphlets. He co-authored the Declaration of the Rights of Man and of the Citizen and also wrote a proposal for new constitution for France.

Most importantly, he realized the fundamental role of education as a means to reduce inequality and liberate mankind, and he even developed curricula for the various stages of a general… show more.

Torgny Lindgren’s short novel (100+ p.) is a tersely written tragedy from 19th-century northern Sweden, describing how an originally neutral relationship between a landowner-tradesman and a family develops into a nightmare of economic and sexual exploitation.

This is fiction but nonetheless a brilliant illustration of the origins of inequality. Lindgren was one of Sweden’s most eminent writers, a member of the Swedish Academy, and well-known for his characteristic, biblically tainted language (a challenge to the translator).

This is a dark story, although there are some rays of light—from art (represented by music) as well as from hope in an intervention from some benign providence.

I have long believed that development economists rely too heavily on reductive formal models that ignore on-the-ground realities and are backed by scant empirical evidence. This book makes a compelling case for observation—particularly in the form of randomized controlled trials that approximate scientific experiments “in the field.”

I admire its rigorous use of the scientific method to critique theoretical approaches that draw much of their legitimacy and influence from technical sophistication and abstraction.

This recommendation is more technical than my previous recommendations.

The authors reconstruct many measures of income and income inequality to show that the widening gap indicated by official statistics is an artifact of certain assumptions underlying these statistics.

First, and most importantly, regarding those who are dependent on the social safety net, "income" includes only cash benefits dispensed by the government, not the cash value of non-cash benefits; and, for those who are taxpayers, "income" is defined as before-tax income, not after-tax income.

Second, monetary values are incorrectly corrected by the CPI (the authors propose using the chained-linked CPI).

The book might be considered to present an agenda for further research on the specifics it addresses and similar concerns.

American author Mark Twain had described the last decades of the 19th century as the Gilded Age in the United States, a period when on the surface everything appeared to be glittering like gold concealing the filth and ugliness that lay beneath. British journalist and academic James Crabtree, now based in Singapore, believes that the last few decades in India closely resembles the Gilded Age of the US. His 357-page book is filled with dozens of anecdotes about some of India’s most wealthy individuals such as Mukesh Ambani, Gautam Adani, and Vijay Mallya. His meetings with them and his detailed descriptions of their lifestyles and demeanour make for racy reading. 

A disclaimer: Crabtree has described in flattering terms his meeting with this writer and referred to some of my articles and books.

Maybe you think Asia and Africa are mired in depressing immiseration. Certainly that’s what the mainstream media sell us. Yet in the last 25 years more progress has been made against poverty in these places than in all of previous human history combined! Radelet, a professor at Georgetown University, shows that the improvement – still a long way to go, of course – of the developing world is the most important thing happening in our spinning world. 

I have always loved Branko Milanović’s way of addressing complex topics in a very accessible and usually highly original way.

In this book, Milanović pays much attention to the rich and the super-rich and devises a way of comparing their wealth across the ages by asking this simple question: how much labour could they command in their own historical period and socio-economic context?

So, for example, Marcus Licinius Crassus, the richest Roman of Caesar’s times, could, with the yearly income from his vast possessions, command the work of 32,000 people. But, as Milanović argues, today’s super-rich are richer than past ones–circa 2010, the richest person in the world was the telecommunications magnate Carlos Slim, who could command the work of 440,000 Mexicans.

Atkinson died in January 2017. His life’s academic work focused on the causes of inequality and poverty. He had a particular interest in policy in these areas which is reflected in this book which offers a rationale for and a detailed account of how household income can be made more equal.

He is concerned with inequality in developed countries, so his focus is on the US, UK, and European countries. He first sets out how it is that income inequality has so greatly increased covering some of the same ground as Milanovic. He then, in chapters on progressive taxation and social security, sets out detailed proposals which he argues would considerably reduce inequality and promote social justice.

His proposals on progressive taxation would, it can be safely asserted, reduce Tory MPs to apoplexy.