Overview

John M. Legge shows the many ways in which the real world diverges from economics textbooks. He argues that mainstream economic theory took a disastrous turn 140 years ago, when it attempted to use calculus to explain human behaviour. A real economy involves people who are not variables in equations. This error led to a second, mainstream economics becoming obsessed with equilibrium. However, constant change is the reality and one cannot explain the present without understanding the path taken to get here. This book presents economics in historical context. It includes a short account of the contributions by some of the key figures in economic theory, starting with Adam Smith. Smith placed great weight on morality: he believed that economic activity took place in a society and could not be justified except insofar as it advanced the interests of that society. Too many economists have come to believe that the interests of society can be measured by a number: that if a policy change raises GDP it is justified, whatever its impact on people.Legge places the economy within society, and society within the environment, explaining that every significant decision has a social and environmental impact, as well as an economic dimension. Seeking to provide answers to students, professional business managers, and those interested in the political process, this work addresses the gap between theory and reality.

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9781412857161

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Reviews

Everything you needed to learn but that your textbook left out. Economics versus Reality presents the great thinkers, including Smith, Ricardo Marx, Keynes, Veblen and Schumpeter among many others, in depth, in down-to-earth language, and from the practical perspective of an engineer. Beautifully composed, erudite and indispensable. -- James Galbraith, University of Texas at Austin John's book challenges ubiquitous textbook 'truths' about the invisible mechanisms ruling the real world. Historical narrative and practical examples clearly demonstrate that businesses turning to fairy theories instead of understanding broader reasons for success will fail. On a global scale things are even more confusing: when the best IPO is made by Alibaba, the US comedian Jon Stewart comments that the Communists have beaten us up at Capitalism. When a run-down Australian shed costs more than a French castle, one wonders if it's really a battle between imaginary supply and demand. Confused even more? You should be. Read the book. -- Max Kraynov, founder and CEO, JetRadar Inc. John Legge provides a methodical and logical businessman's perspective on why mainstream economic theory, which is supposed to be a high-order description of business, is in fact completely misleading about the behavior of firms, consumers, markets and the macro-economy. Any businessman who currently peppers his dialogue with dashings of supply and demand needs to read this book before he talks himself into bankruptcy. -- Stephen Keen, Head of School of Economics, History & Politics, Kingston University Everything you needed to learn but that your textbook left out. Economics versus Reality presents the great thinkers, including Smith, Ricardo Marx, Keynes, and Schumpeter among many others, in depth, in down-to-earth language, and from the practical perspective of an engineer. Beautifully composed, erudite and indispensable. -- James Galbraith, University of Texas at Austin John's book challenges ubiquitous textbook 'truths' about the invisible mechanisms ruling the real world. Historical narrative and practical examples clearly demonstrate that businesses turning to fairy theories instead of understanding broader reasons for success will fail. On a global scale things are even more confusing: when the best IPO is made by Alibaba, the US comedian Jon Stewart comments that the Communists have beaten us up at Capitalism. When a run-down Australian shed costs more than a French castle, one wonders if it's really a battle between imaginary supply and demand. Confused even more? You should be. Read the book. -- Max Kraynov, founder and CEO, JetRadar Inc. John Legge provides a methodical and logical businessman's perspective on why mainstream economic theory, which is supposed to be a high-order description of business, is in fact completely misleading about the behavior of firms, consumers, markets and the macro-economy. Any businessman who currently peppers his dialogue with dashings of supply and demand needs to read this book before he talks himself into bankruptcy. -- Stephen Keen, Head of School of Economics, History & Politics, Kingston University Everything you needed to learn but that your textbook left out. Economics versus Reality presents the great thinkers, including Smith, Ricardo Marx, Keynes, and Schumpeter among many others, in depth, in down-to-earth language, and from the practical perspective of an engineer. Beautifully composed, erudite and indispensable. -- James Galbraith, University of Texas at Austin -John's book challenges ubiquitous textbook 'truths' about the invisible mechanisms ruling the real world. Historical narrative and practical examples clearly demonstrate that businesses turning to fairy theories instead of understanding broader reasons for success will fail. On a global scale things are even more confusing: when the best IPO is made by Alibaba, the US comedian Jon Stewart comments that -the Communists have beaten us up at Capitalism.- When a run-down Australian shed costs more than a French castle, one wonders if it's really a battle between imaginary supply and demand. Confused even more? You should be. Read the book.- -- Max Kraynov, founder and CEO, JetRadar Inc. -John Legge provides a methodical and logical businessman's perspective on why mainstream economic theory, which is supposed to be a high-order description of business, is in fact completely misleading about the behavior of firms, consumers, markets and the macro-economy. Any businessman who currently peppers his dialogue with dashings of -supply and demand- needs to read this book before he talks himself into bankruptcy.- -- Stephen Keen, Head of School of Economics, History & Politics, Kingston University -Everything you needed to learn but that your textbook left out. Economics versus Reality presents the great thinkers, including Smith, Ricardo Marx, Keynes, and Schumpeter among many others, in depth, in down-to-earth language, and from the practical perspective of an engineer. Beautifully composed, erudite and indispensable.- -- James Galbraith, University of Texas at Austin

-John's book challenges ubiquitous textbook 'truths' about the invisible mechanisms ruling the real world. Historical narrative and practical examples clearly demonstrate that businesses turning to fairy theories instead of understanding broader reasons for success will fail. On a global scale things are even more confusing: when the best IPO is made by Alibaba, the US comedian Jon Stewart comments that -the Communists have beaten us up at Capitalism.- When a run-down Australian shed costs more than a French castle, one wonders if it's really a battle between imaginary supply and demand. Confused even more? You should be. Read the book.- -- Max Kraynov, founder and CEO, JetRadar Inc. -John Legge provides a methodical and logical businessman's perspective on why mainstream economic theory, which is supposed to be a high-order description of business, is in fact completely misleading about the behavior of firms, consumers, markets and the macro-economy. Any businessman who currently peppers his dialogue with dashings of -supply and demand- needs to read this book before he talks himself into bankruptcy.- -- Stephen Keen, Head of School of Economics, History & Politics, Kingston University -Everything you needed to learn but that your textbook left out. Economics versus Reality presents the great thinkers, including Smith, Ricardo Marx, Keynes, and Schumpeter among many others, in depth, in down-to-earth language, and from the practical perspective of an engineer. Beautifully composed, erudite and indispensable.- -- James Galbraith, University of Texas at Austin

John's book challenges ubiquitous textbook 'truths' about the invisible mechanisms ruling the real world. Historical narrative and practical examples clearly demonstrate that businesses turning to fairy theories instead of understanding broader reasons for success will fail. On a global scale things are even more confusing: when the best IPO is made by Alibaba, the US comedian Jon Stewart comments that the Communists have beaten us up at Capitalism. When a run-down Australian shed costs more than a French castle, one wonders if it's really a battle between imaginary supply and demand. Confused even more? You should be. Read the book. -- Max Kraynov, founder and CEO, JetRadar Inc.

Author Information

John M. Legge has taught innovation and entrepreneurship for the last twenty-five years. Previously, he worked in the engineering and computer industries in design, development, implementation, marketing, and strategic planning.

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