I just wanted something to read

“He just wanted a decent book to read.” That’s the creation story of Penguin Books, as recounted on the inside of a box of postcards of Penguin/Pelican book covers I got for Christmas, ‘he’ being the founder Allen Lane.

The precedent of Penguin’s various series of non-fiction books – the Pelicans, the Specials, the ‘modern economics’ series – along with earlier examples such as the Left Book Club is what led me to wonder if I shouldn’t dabble in publishing some books I’d like to read myself. They would cover economics and technology. They would be short enough for a train journey – in 1935, Allen Lane was fruitlessly looking for something to read on Exeter Station. The authors would be authorities in their field but would write accessibly, and they would have something to say, something with public policy relevance. So the Perspectives series was born, in association with the London Publishing Partnership.

The first four titles are Jim O’Neill’s The BRIC Road to Growth; Bridget Rosewell’s Reinventing London; Andrew Sentance’s Rediscovering Growth After the Crisis; and Julia Unwin’s Why Fight Poverty. There was a soft launch just before Christmas, a separate launch for Bridget’s book last week, and tomorrow night an event on Andrew’s book.

[amazon_image id=”B00I124BKO” link=”true” target=”_blank” size=”medium” ]The BRIC Road to Growth (Perspectives)[/amazon_image][amazon_image id=”B00I11G7FW” link=”true” target=”_blank” size=”medium” ][/amazon_image][amazon_image id=”B00HZ1YU4Y” link=”true” target=”_blank” size=”medium” ]Rediscovering Growth: After the Crisis (Perspectives)[/amazon_image][amazon_image id=”B00I124BLS” link=”true” target=”_blank” size=”medium” ]Why Fight Poverty? (Perspectives)[/amazon_image]

I’m biased, but I think these four live up to the aim of having a clear and authoritative message. Jim argues that the shift in the world’s economic centre of gravity is not in the future – it has already happened, and global institutions need to adapt swiftly. Bridget makes the case for London’s ability to reshape its economy beyond the financial sector, but needs to focus on services other than finance and have in place the right housing, infrastructure and external connections to enable growth. Andrew says that although the UK economy is starting to recover, the lean years are not over yet and we need to get used to a much slower pace of growth than we enjoyed before the crisis. Julia convincingly shows how negative emotions – fear and guilt – get in the way of a rational set of policies to tackle poverty.

Upcoming titles include Dave Birch on digital identity as money, David Walker on when public outsourcing to the private sector works, and when it doesn’t, and Kate Barker on how to get more housing built.

It has been an educational experience publishing books. Dealing with Amazon is tough if you’re small, but of course Kindle editions are essential. It’s a crowded market: there are lots of short, pithy books, lots of small presses and lots of self-published titles out there. But so far, so good. I’ll post occasional updates.

Forerunners

Eric Schmidt is wrong – the robots are not drinking champagne

I’ve not yet read [amazon_link id=”1480577472″ target=”_blank” ]The Second Machine Age[/amazon_link] by Erik Brynjolfsson and Andrew McAfee but am eager to do so. This question of what technology is doing to jobs and living standards is the issue of the moment. It’s obviously tempting for people to reach for the extremes (The robots are eating our jobs! We wealth-creators are being unfairly attacked!), when the truth will be nuanced, as it always is. Of course some comment has been more thoughtful. Gavin Kelly of the Resolution Foundation wrote a measured survey of the debate (its balance belied by the headline The Robots are Coming!). This Wonkblog column (Will Robots Steal Our Jobs?) pushes back against the robo-phobia in a reasonable way by looking at the history of the first Industrial Revolution.

[amazon_image id=”1480577472″ link=”true” target=”_blank” size=”medium” ]The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies[/amazon_image]

What I do know is that Eric Schmidt is wrong. The Google chief presented this at Davos as “a race between computers and people”. On the contrary, it’s a battle between people and people. I see no robots drink champagne and nibbling canapes at the World Economic Forum. The technology creates the potential for great advances in living standards, almost always in the recent (past 250 years) past shared widely. The sharing is done by society, and the institutions that govern it.

One key institution is public education, so the masses have skills that complement technology rather than competing with it. Our education systems are struggling to adapt from the age of mass production to the modern industrial system. Another set of institutions consists of those that redistribute – collective bargaining, the welfare state since the mid-20th century, in need of reinventing. There is also the question of the ownership of the machines. The invention of the joint stock company is often overlooked as an important mechanism not only for raising capital but for sharing ownership among the growing middle class. There’s a very good book about the co-evolution of institutions and technology during the Industrial Revolution, [amazon_link id=”0226014746″ target=”_blank” ]The Institutional Revolution[/amazon_link], by Douglas Allen – well worth a read for those pondering what institutions might stop the triumph of the robots, or rather their gilded owners.

[amazon_image id=”0226014746″ link=”true” target=”_blank” size=”medium” ]Institutional Revolution: Measurement and the Economic Emergence of the Modern World (Markets and Governments in Economic History)[/amazon_image]

History retweeting itself

Tom Standage’s latest book, [amazon_link id=”1408842068″ target=”_blank” ]Writing on the Wall: Social Media – the first 2000 years[/amazon_link], has kept me going through a week of travel and meetings. As you’d expect from such a consistently interesting and good writer, it’s a fabulous book. It combines storytelling with the point (similar to that in his equally terrific [amazon_link id=”162040592X” target=”_blank” ]The Victorian Internet[/amazon_link]) that there are some constant themes in the impact of communications technologies through the ages. Here, the point is that all media are social media: they are all means of communication, the defining feature of human societies. It’s what we do. What’s more, the characteristics of different media are complementary, and introducing a new means of communication will certainly change how the older methods are used but will not displace them.

[amazon_image id=”1408842068″ link=”true” target=”_blank” size=”medium” ]Writing on the Wall: Social Media – The First 2,000 Years[/amazon_image]

Writing on the Wall draws parallels (in a suitably subtle way) between innovations of the past and today’s social media – for example, English Civil War pamphleteering and blogging, or London’s 18th century coffee houses and Twitter. The examples range from Republican Rome to pre-Revolutionary France, Martin Luther and the printing press, and the dawn of modern mass media in 19th century newspapers. In every case, the innovation was enthusiastically used by the many, and condemned as a vehicle for dangerous – blasphemous, uncivilized, destabilizing – by the powerful few. Each technological innovation did disrupt existing political structures, the book suggests.

Some of the less well-known examples (to an English reader) are especially interesting. I liked the example of disrespectful songs about Louis XV circulating in late 18th century Paris – Robert Darnton’s terrific book [amazon_link id=”0674066049″ target=”_blank” ]Poetry and the Police: Communication Networks in 18th Century Paris[/amazon_link] covers this episode. People wrote rhymes on slips of paper they could hand out in the coffee house or leave lying around in the park. The ‘nodes’ of these networks were known as ‘nouvellistes’. The reason these handwritten slips circulated was because the French authorities restricted printing so tightly – they were the Chinese censors of their day. It’s interesting to see that French journalism is still rather respectful of authority. I attended a Franco-British conference last week, and our French counterparts assured us that ‘everyone’ had known about President Hollande’s affair (by word of mouth) for months – impossible to imagine that happening in British journalism.

[amazon_image id=”0674066049″ link=”true” target=”_blank” size=”medium” ]Poetry and the Police[/amazon_image]

Newspapers played an important role in the American colonies, in paving the way for the war of independence. Although also controlled by the British authorities, publishers successfully resisted the strictest measures, and papers circulated alongside letters in written correspondence. Tom Paine’s catalytic pamphlet [amazon_link id=”1448657113″ target=”_blank” ]Common Sense[/amazon_link] was serialized in many papers.

I loved the title of the Epilogue – ‘History Retweets Itself’. It argues that ‘old’ mass media were an anomaly, and prior to their emergence in the mid-19th century social media networks were the means of sharing information and ideas. There are some interesting thoughts on the future of ‘new’ social media – will they stay in their proprietary silos or not? The book concludes: “The rebirth of social media in the Internet age represents a profound shift – and a return, in many respects, to the way things used to be.

 

 

Introducing game theory

A question in the comments: what books are suitable to introduce game theory to a young reader? I asked on Twitter and got loads of good replies – huge thanks to all who made suggestions:

Ariel Rubinstein’s [amazon_link id=”1906924775″ target=”_blank” ]Economic Fables[/amazon_link] (I loved this book so much it was the Enlightened Economist Book of the Year in 2012)

[amazon_image id=”1906924775″ link=”true” target=”_blank” size=”medium” ]Economic Fables[/amazon_image]

[amazon_link id=”0273684965″ target=”_blank” ]A Guide to Game Theory[/amazon_link] Fiona Carmichael

[amazon_link id=”038541580X” target=”_blank” ]Prisoner’s Dilemma: John Von Neumann, Game Theory and the Puzzle of the Bomb[/amazon_link] by William Poundstone

[amazon_image id=”038541580X” link=”true” target=”_blank” size=”medium” ]Prisoner’s Dilemma: John Von Neumann, Game Theory and the Puzzle of the Bomb[/amazon_image]

[amazon_link id=”0669246034″ target=”_blank” ]Fun and Games[/amazon_link] by Ken Binmore, or his [amazon_link id=”0199218463″ target=”_blank” ]Game Theory: A Very Short Introduction[/amazon_link]

[amazon_image id=”0669246034″ link=”true” target=”_blank” size=”medium” ]Fun and Games: A Text on Game Theory[/amazon_image]

[amazon_link id=”0393062430″ target=”_blank” ]The Art of Strategy[/amazon_link] or [amazon_link id=”0393310353″ target=”_blank” ]Thinking Strategically[/amazon_link] by Avinash Dixit and Barry Nalebuff (I’ve read these, too, and they’re pitched at a business audience so very accessible)

A critique of game theory, [amazon_link id=”0415094038″ target=”_blank” ]Game Theory: A Critical Introduction[/amazon_link] Shaun Hargreaves Heap and Yanis Varoufakis

Finally, some recommended online lectures – Ben Polak’s Yale course.

 

 

 

Complementarity and serendipity

After writing yesterday (in The Economics of Shelfies) about the complementarity between e-books and physical books, and arguing that in general different vehicles for ideas are complements rather than substitutes, I happened to read this last night in Tom Standage’s [amazon_link id=”1408842068″ target=”_blank” ]Writing on the Wall: Social Media – the first 2000 years[/amazon_link]. It’s about the circulation of handwritten poetry among groups of friends and family members in Tudor times:

“The printing press was now a century old, but rather than making obsolete the copying and sharing of documents in manuscript form, print actually increased the importance and prevalence of handwritten text. Printing pushed up demand for paper throughout Europe, encouraging production and making it cheaper (its price fell by 40% during the 15th century) and more widely available.”

The passage goes on to explain the fashion for creating ‘miscellanies’ or commonplace books, large handwritten notebooks, sometimes shared.

[amazon_image id=”1408842068″ link=”true” target=”_blank” size=”medium” ]Writing on the Wall: Social Media – The First 2,000 Years[/amazon_image]

I’m about half way through the book and will review it later this week.