Economics of the 1% How mainstream economics serves the rich, obscures reality and distorts policy

The title of this book implies an evaluation of the economics of the (richest) 1 percent, but it actually describes the economy as only benefiting the 1%. In his examination, Weeks (SOA, Univ. of London, UK) legitimately questions assumptions of a competitive market; however, his argument is not compelling. Some readers may be put off when mainstream economists--including Nobel Prize winners--are labeled econfakers; according to the author, these are experts of the mainstream economics profession who claim to have profound knowledge, but in fact understand little and obscure almost everything. The author makes well-grounded arguments against a balanced government budget, noting social service expenditures are counter-cyclical consumption goods while education and government capital goods are investment goods with long-run returns. Inflation measures are criticized based on new products coming to market, and quality/taste changes altering the basket of goods purchased. Inflation is blamed on spending and assumed to be independent of the money supply, making Milton Friedman an econfaker in the author's view. Unfortunately, cause and effect relationships are not clearly identified. While many would agree with Weeks that there has been age, gender, and ethnicity discrimination, his argument that free trade benefits only 1 percent at the expense of 99 percent is not convincing. Summing Up: Recommended. Comprehensive academic collections only. --Edward C. Erickson, California State University, Stanislaus