Progressive Economics 101
July 6, 2020 5:52 PM Subscribe
A college-age acquaintance has asked for help finding media that explains why social programs/social investment is economically beneficial. We have a chance to turn one to our side here, please help!
What are some compelling articles, accessible books, or other media I can share with a young person (college age) looking to learn more about why social programs work?
This young person is currently exploring their political beliefs, and they understand that, for example, America’s health care system is harmful for many Americans, and that poor folks deserve quality health care even if they can’t “afford” it (they come from an economically privileged background). But they have difficulty wrapping their head around the idea, for example, that a government that spends a lot on social programs isn’t worse off. Spending = bad and saving = good, in their mind.
This person has good intentions but is just uninformed. The most impactful resources for them will be compelling but not complex. Let’s help them become an awesome little socialist! Where to start?
What are some compelling articles, accessible books, or other media I can share with a young person (college age) looking to learn more about why social programs work?
This young person is currently exploring their political beliefs, and they understand that, for example, America’s health care system is harmful for many Americans, and that poor folks deserve quality health care even if they can’t “afford” it (they come from an economically privileged background). But they have difficulty wrapping their head around the idea, for example, that a government that spends a lot on social programs isn’t worse off. Spending = bad and saving = good, in their mind.
This person has good intentions but is just uninformed. The most impactful resources for them will be compelling but not complex. Let’s help them become an awesome little socialist! Where to start?
If they would enjoy something light and breezy and aren’t afraid of the s-word, Socialism...Seriously is a good read.
posted by mostly vowels at 6:23 PM on July 6, 2020
posted by mostly vowels at 6:23 PM on July 6, 2020
I really like Economics: The User's Guide by Ha-Joon Chang, who is a well-known heterodox economist. It's a relatively easy read, and has a chapter on inequality and another chapter on unemployment. The inequality chapter in particular lays out an argument for why inequality is bad, not just in economic terms, but also in human terms.
Chang does give an overview of the Marxist school of economics, so while it won't turn your friend into a socialist (just yet!) I think it'd be a great jumping-off point given how concisely he lays out the competing schools and ideas in the field. And his exposition of Keynesian economics will definitely help get your friend out of the "spending = bad, saving = good" mindset.
posted by un petit cadeau at 6:28 PM on July 6, 2020 [1 favorite]
Chang does give an overview of the Marxist school of economics, so while it won't turn your friend into a socialist (just yet!) I think it'd be a great jumping-off point given how concisely he lays out the competing schools and ideas in the field. And his exposition of Keynesian economics will definitely help get your friend out of the "spending = bad, saving = good" mindset.
posted by un petit cadeau at 6:28 PM on July 6, 2020 [1 favorite]
The concept of government investment with positive social return isn't a socialist or Marxist idea. It's about as mainstream as any theoretical idea in economics. Of course, there's huge debate about the effectiveness of particular investments.
Have him look at the work of Jim Heckman, a Nobel-prize winning, University of Chicago economist (that is, about as far away from Marxist as you can get) whose research finds huge returns to early-childhood education: see here and here, for example.
posted by Mr.Know-it-some at 7:04 PM on July 6, 2020 [7 favorites]
Have him look at the work of Jim Heckman, a Nobel-prize winning, University of Chicago economist (that is, about as far away from Marxist as you can get) whose research finds huge returns to early-childhood education: see here and here, for example.
posted by Mr.Know-it-some at 7:04 PM on July 6, 2020 [7 favorites]
the key term you want to look for is "positive externalities"
so search the literature for the program you are seeking economic justifications for plus that term and see what comes up
often you will find very good return-on-investment analysis, like for every $1 a community invests in a program, they save $4 in other costs
that kind of hard ROI analysis is what led to conservative Utah of all places adopting a "Housing First" model for addressing homelessness
posted by Jacqueline at 8:33 PM on July 6, 2020 [2 favorites]
so search the literature for the program you are seeking economic justifications for plus that term and see what comes up
often you will find very good return-on-investment analysis, like for every $1 a community invests in a program, they save $4 in other costs
that kind of hard ROI analysis is what led to conservative Utah of all places adopting a "Housing First" model for addressing homelessness
posted by Jacqueline at 8:33 PM on July 6, 2020 [2 favorites]
I recommend Doughnut economics: seven ways to think like a 21st-century economist by Kate Raworth. The idea is that the goal of economy should not be maximzing GDP, but to meet the needs of all within the means of the planet - maintaing the social foundations of society (eg. public infrastructure, health care, education, ....) while respecting ecological ceilings.
I think the book has a really instructive discussion of the flaws of traditional econoic models - you kinda get taught at uni that these models are of course like all models based on necessary simplifications, and that some of the underlying assumptions are fairly questionable from a certain perspective and so on, but as I said, I used to think, well that's the nature of models. I never quite realized to what extent these flawed premises can make these models actually useless and downright dangerous as guides for action. Raworth really takes apart the myth of the tragedy of the commons for instance, which is often used to argue against public spending.
posted by sohalt at 11:14 PM on July 6, 2020 [3 favorites]
I think the book has a really instructive discussion of the flaws of traditional econoic models - you kinda get taught at uni that these models are of course like all models based on necessary simplifications, and that some of the underlying assumptions are fairly questionable from a certain perspective and so on, but as I said, I used to think, well that's the nature of models. I never quite realized to what extent these flawed premises can make these models actually useless and downright dangerous as guides for action. Raworth really takes apart the myth of the tragedy of the commons for instance, which is often used to argue against public spending.
posted by sohalt at 11:14 PM on July 6, 2020 [3 favorites]
The Spirit Level might fit the bill, though it’s not only about the economic benefits.
posted by clew at 9:22 AM on July 7, 2020
posted by clew at 9:22 AM on July 7, 2020
For a general overview of how the economy works, Economics for Everyone: A Short Guide to the Economics of Capitalism by Canadian labour economist Jim Stanford is terrific and readable. Some of the later chapters talk about social programs. The companion website has great resources, too.
posted by frau_grubach at 3:14 PM on July 7, 2020
posted by frau_grubach at 3:14 PM on July 7, 2020
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posted by qxntpqbbbqxl at 6:15 PM on July 6, 2020 [1 favorite]