This review was first published on Progress.org. Visit the website to read the full review.
A New Model of the Economy is without a doubt a work of monumental proportions. I say this not lightly: This work deserves my wholehearted endorsement. Written in the tradition of the School of Economic Science in London, which traces its lineage back to economic giants such as Henry George (many of whom, like George, were marginalized from mainstream economic thought due to resistance from wealthy interests), this book presents as rational and as clear a theory of economic prosperity for the whole of society as I’ve ever seen. You cannot help but agree with its conclusions, since they are not only based on a sound and logical framework, but are also explained with a healthy dose of common sense.
Much of mainstream economic thought is sadly an insult not only to logic and scientific thinking but also to humanity overall due to its utter disregard of treating land—nature—as a separate “factor of production”; instead, the so-called “neoclassical” economic school treats land as a capital good to be exploited for private gain, no different from objects like cars or computers. Most economic models based on this lack of distinction incur flaws that lead to incorrect economic forecasts and faulty economic applications in addressing social issues such as wealth inequality or ecocide.
Not A New Model of the Economy, however. From the start it recognizes land as a critical factor of production—separate from labor and capital—and thereby properly sets the stage for an in-depth analysis of what causes various social ailments such as wealth inequality, poverty, or the destruction of the environment…
I highly recommend this book to anyone who wishes to gain an in-depth understanding of economics, and especially to policymakers and economists worldwide.