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The Economics Anti-Textbook: A Critical Thinker's Guide to Microeconomics, by Rod Hill, Tony Myatt
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Mainstream textbooks present economics as an objective science free from value judgements; that settles disputes by testing hypotheses; that applies a pre-determined body of principles; and contains policy prescriptions supported by a consensus of professional opinion. The Economics Anti-Textbook argues that this is a myth - one which is not only dangerously misleading but also bland and boring. It challenges the mainstream textbooks' assumptions, arguments, models and evidence. It puts the controversy and excitement back into economics to reveal a fascinating and a vibrant field of study - one which is more an 'art of persuasion' than it is a science.
The Economics Anti-Textbook's chapters parallel the major topics in the typical text, beginning with a boiled-down account of them before presenting an analysis and critique. Drawing on the work of leading economists, the Anti-Textbook lays bare the blind spots in the texts and their sins of omission and commission. It shows where hidden value judgements are made and when contrary evidence is ignored. It shows the claims made without any evidence and the alternative theories that aren't mentioned. It shows the importance of power, social context and legal framework.
The Economics Anti-Textbook is the students' guide to decoding the textbooks and shows how real economics is much more interesting than most economists are willing to let on.
- Sales Rank: #778237 in eBooks
- Published on: 2012-11-15
- Released on: 2012-11-15
- Format: Kindle eBook
Review
"What humankind needs second most (first is a cure for global warming), is a means of defusing the lethal ideological superstitions implanted in the educated masses by Samuelson/Mankiw type economics textbooks. Hill and Myatt’s 'anti-textbook' goes a long way toward providing it." --Edward Fullbrook
"I highly recommend Hill and Myatt’s "anti-textbook." It is not so much an outright rejection of traditional treatments of introductory microeconomics as it is an exercise in laying bare the premises on which they are based and then suggesting alternative assumptions and methodologies. This approach leaves the student with a much deeper understanding of economic theory and it shows our discipline for what it truly is: an ongoing conversation among competing paradigms. I urge instructors to amend their courses so that time can be made for this important critique." -- John. T. Harvey, Professor of Economics, author of Currencies, Capital Flows, and Crises: A Post Keynesian Analysis of Exchange Rate Determination; former director of the International Confederation of Associations for Pluralism in Economics
"Hill and Myatt's timely book should be compulsory reading for every student of economics. It gives vital anwers to the question which ever more people are asking – how did economics get it so wrong? A searching critique of the actual texts which figure on economics courses offers that vital product too long absent from the economics storecupboard – a second opinion." -- Alan Freeman, coordinator, UK Association for Heterodox Economics
"Rod Hill and Tony Myatt have written one of the best critical texts of neoclassical microeconomics that I have ever seen. It is a great text to assign along with an introductory or intermediate microeconomics text. Its critical commentary is sharp and very readable. All heterodox economists who have to teach undergraduate microeconomics should also assign this book for their students." -- Professor Frederic S. Lee, Editor, American Journal of Economics and Sociology
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About the Author
Rod Hill grew up in Ontario, was educated at the University of Toronto, University of Stockholm and the University of Western Ontario where he obtained a PhD in Economics. He has taught at the University of Windsor, University of Regina and the University of New Brunswick, where he has been a Professor of Economics since 2003. His research interests have included international trade policy, taxation and the underground economy, and (as a result of growing dissatisfaction) the content of the introductory textbooks. He's a member of Economists for Peace and Security and the Progressive Economics Forum.
Tony Myatt received his PhD from McMaster University with distinction in theory. He has taught at McMaster University, Western University, Nipissing University College, the University of Toronto, and the University of New Brunswick, where he has been Professor of Economics since 1992. His research interests have included the supply-side effects of interest rates, labour market discrimination, unemployment rate disparities, and the methods and content of economic education. His interest in textbooks stems from re-evaluating what is typically taught at the introductory level. As a result, he has developed several different introductory courses as vehicles for teaching principles of economics, including Economics of Everyday Life, Economics in the Real World, and Economics Through Film. Professor Myatt was the recipient of UNB's Arts Faculty Award for Excellence in Teaching in 2008.
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Most helpful customer reviews
27 of 28 people found the following review helpful.
Textbook Economics:Text and Anti-text
By Brisbane reader
Hill and Myatt's anti-textook is an easy to read, well organised critique of textbook micro-economics that can be read alongside any standard textboook as it parallels their structure and topics. It is more a series of explorations than a coherent critique launched from one theoretical perspective; nevertheless, it exposes the limitations of modern economics well. It deserves a most careful reading and comparison with other credible studies of economics listed below.
It is similar to, but more direct and simpler to read than Steve Keen's Debunking Economics second edition, which taken overall is more comprehensive and a deeper more cogent critique. Both are essential to help grasp the weakness of positivist economics.
But, I would like to recommend a book that penetrates more deeply into the political and economic philosophy behind the modern "science" of economics by examining Hobbes, Locke, Smith, Marshall, Keynes, Hayek, Myrdal, and Rational Expectations Economics. That book is "Deductive Irrationality. A Commonsense Critique of Economic Rationalism" 073911624X) by Stephen McCarthy and David Kehl based on the teaching and writings of Dr. Richard W. Staveley here in Brisbane, Australia from the 1960s to the end of the last century.
Other books of interest reviewing economics include:
1. Debunking Economics 2nd ed. by Steve Keen;
2. The Skeptical Economist by J. Aldred;
3. Economics for the Rest of Us by Moshe Adler;
Happy reading!
0 of 0 people found the following review helpful.
Four Stars
By J
Interesting and informative
10 of 11 people found the following review helpful.
Deeply Insightful
By Evelyn Uyemura
I have never taken even a basic course in economics, and yet I have become quite interested in the subject and I want to be able to follow the current events in the economy with some level of understanding. So I have been reading quite a few books about the economic crisis of 2008 and following, and I read Paul Krugman's blog in the NY Times. And I invested in this book to get a better fundamental understanding of how economics works as a subject. It was a very worthwhile investment.
Each chapter begins with an overview of what mainstream texts teach, and that was not always easy for me to understand. But I did my best, and I have at least a nodding acquaintance with what a person learns in a microeconomics course. But more importantly, this book then presents the Anti-Text discussion and analysis of the weaknesses and assumptions that underlie mainstream economics.
One of the key points that impressed me is how models are used. Economics is based heavily on charts and equations that simplify reality in order to deal with it abstractly. The trick, as the authors explain it, is that a model is supposed to be judged by how accurately it predicts reality. Yet what happens in practice is that models are taken as proof, rather than as testable hypotheses. Models are not supported by evidence from the real world, but by imaginary examples from a vastly over-simplified world in which decisions are made by hyper-rational beings who bear little resemblance to actual humans.
They further argue that real world factors such as unequal access to information and vastly unequal access to power are brushed aside and written out of the models. So when a worker interacts with a corporation, the assumption is that each is a totally free agent who can enter or leave the market at will, so if a corporation decides to move their production out of a community, the workers equally have the freedom to sell their labor elsewhere, without taking any account of the real-life ties that an individual worker may have, such as an underwater mortgage and kids in a local school. The power that corporations have in making laws that favor them is also written out of the standard textbook.
Economics concerns itself almost exclusively with what it refers to as "efficiency," and very little with issues of "equity," which means not equality of outcome, as those who fling "socialism" around as an epithet claim, but with basic fairness in how a society's resources are allocated. Matters such as externalities, while touched upon, are downplayed.
An interesting example is the Pareto Principle, which states that "society" is better off if someone becomes better off without anyone else becoming worse off. This seems to be almost a truism, until the actual application of it is considered. Imagine a community in which 100 people each earn $100 a week, and then suddenly, one member of the community finds oil under his property, and begins to earn $1 million a week, while the other 99 continue to earn $100 a week. All to the good, right? But out here in the real world, human beings have an innate sense that it is unfair for one member of the group (or even half of the group) to be given benefits that the rest do not share in. In fact, this sense of fairness is observed not only in young children but even in other primates. Did the people earning $100 become worse off when their neighbor suddenly struck it rich? Not in any absolute sense. But they were comparatively worse off than before, because they now lived in a world in which they were noticeably poorer than one person, whose sudden wealth came to him purely by luck. (If you give one kid in the class a candy bar, and nothing to the rest of the class, the Pareto Principle would say that this is a net gain for the class. Is it?)
If you don't like this example (which is mine, not the authors') consider this one: 10 people are in a bar. In walks Bill Gates. The average wealth of the people in the bar is now in the millions of dollars. But how does that matter? This, in effect, is how the wealth of a nation is measured. If the average is higher, then society is doing well. But society is made up of individuals who may not participate in this average at all.
In fact, examples like this make one wonder whether economists have ever met any real people, since they seem to have so little interest in or understanding of actual human emotions and reactions. The Efficient Market Hypothesis is just one of many examples in which an idealized model works about like cold fusion--it's a beautiful idea, but it doesn't match up very well with cold hard reality. The EMH basically claims that the price is always right. If a 2 bedroom house in the Califonria desert is sold for $800,0000, well that's what it's worth, there is no other price, and a bubble can't possibly exist.
Anyhow, all in all, a well-written, clear, and very informative and insightful book. I will be re-reading it again from time to time to deepen my understanding of how economics does, and doesn't work.
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