Good Economics for Hard Times: 8 key ideas
The core ideas of Good Economics for Hard Times, each in under a minute, written in our own words. Want the full depth? Get the book.
- IDEA 1 OF 8
Good economics needs humility and evidence
Banerjee and Duflo argue that economists have often been too confident, and that public debates suffer when economics is reduced to slogans.
They use careful evidence to examine questions like migration, trade, growth and inequality.
- IDEA 2 OF 8
Most people don't want to migrate
Contrary to popular fears, the authors show that most people are reluctant to leave home, even for better jobs.
Migrants also tend not to lower local wages much, because they create demand as well as supply.
- IDEA 3 OF 8
Trade hurts some places badly
The authors describe the China shock, when imports from China hit certain American regions hard.
They argue that workers who lose out from trade often cannot move or retrain easily.
- IDEA 4 OF 8
Preferences can become polarised
The authors discuss how people's views and identities can become more divided.
They explain how social media and group loyalties can reinforce polarisation. Listening across divides helps. Contact can reduce suspicion.
- IDEA 5 OF 8
Growth is hard to predict
The authors argue that economists do not fully understand how to create growth.
They warn against chasing high growth at all costs and suggest focusing on improving lives. Wellbeing matters more.
- IDEA 6 OF 8
Climate change needs action
The authors argue that climate change will hurt poor people most.
They support policies like carbon taxes, combined with help for those affected. Fairness and action must go together. Delay costs more.
- IDEA 7 OF 8
Automation needs careful policy
The authors discuss automation and its effects on jobs.
They suggest policies that protect workers and help them adapt, rather than simply speeding up automation. Tax rules, they note, sometimes favour machines over workers.
- IDEA 8 OF 8
Welfare should respect dignity
The authors argue that social programmes should treat people with dignity.
They discuss ideas like a basic income for the poorest, alongside support for work and training. Respect, they argue, is as important as money.
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