"Frank's worthy and unfashionable aim is to argue the economic case for some forms of government regulation, to defend taxation, and even to advocate certain forms of tax increase."-Howard Davies, Times Higher Education focus on one paradox of economic life: behavior which makes sense for a particular individual can harm the community as a whole."-Chrystia Freeland, Reuters Frank is an economist for the rest of us. " is a smart, complex, and thoughtful book that will make many readers view the dismal science in a wholly different way."- Biz Ed "mpressive, original and thoughtful."-Tim Harford, Financial Times Highlighting reasons for market failure and the need to cut waste, Frank argues that we can domesticate our wild economy by taxing higher-end spending and harmful industrial emissions."- Nature because individual and species benefits do not always coincide. Charles Darwin's idea of natural selection is a more accurate reflection of how economic competition works. But that is the exception rather than the rule, argues writer Robert H. "The premise of economist Adam Smith's 'invisible hand'-a tenet of market economics-is that competitive self-interest shunts benefits to the community. " excellent new book."-Jonathan Rothwell, New Republic's The Avenue blog Frank, an economist at Cornell, draws on social psychology to shatter many myths about competition and compensation."-Andrew Hacker, New York Review of Books provide(s) much-needed information and analysis to explain why so much of the nation's money is flowing upward. " arguments are carefully crafted and artfully presented to make the case that since we're in the business of designing society from top down anyway we might as well go whole hog and do it right."-Michael Shermer, Journal of Bioeconomics In a new afterword, Frank further explores how the themes of inequality and competition are driving today’s public debate on how much government we need. That’s a bold claim, Frank concedes, but it follows directly from logic and evidence that most people already accept. By doing so, we could make the economic pie larger, eliminate government debt, and provide better public services, all without requiring painful sacrifices from anyone. The best solution is not to prohibit harmful behaviors but to tax them. The good news is that we have the ability to tame the Darwin economy. Far from creating a perfect world, economic competition often leads to “arms races,” encouraging behaviors that not only cause enormous harm to the group but also provide no lasting advantages for individuals, since any gains tend to be relative and mutually offsetting. But what if Smith’s idea was almost an exception to the general rule of competition? That’s what Frank argues, resting his case on Darwin’s insight that individual and group interests often diverge sharply. Smith’s theory of the invisible hand, which says that competition channels self-interest for the common good, is probably the most widely cited argument today in favor of unbridled competition-and against regulation, taxation, and even government itself. ![]() ![]() ![]() Indeed, the failure to recognize that we live in Darwin’s world rather than Smith’s is putting us all at risk by preventing us from seeing that competition alone will not solve our problems. And the consequences of this fact are profound. The reason, Frank argues, is that Darwin’s understanding of competition describes economic reality far more accurately than Smith’s. ![]() But Robert Frank, New York Times economics columnist and best-selling author of The Economic Naturalist, predicts that within the next century Darwin will unseat Smith as the intellectual founder of economics. Darwin, after all, was a naturalist, not an economist. Who was the greater economist-Adam Smith or Charles Darwin? The question seems absurd.
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