Thinking like an Economist: How Efficiency Replaced Equality in U.S. Public Policy

Economic reasoning became dominant in Washington between the 1960s and 1980s, and it continues to constrain progressive ambitions today. This way of thinking, introduced by liberal technocrats, was grounded in economics and transformed law and policy. It was allied with Republicans and in conflict with liberal Democrats who argued for rights, equality, and limits on corporate power. By the Carter administration, economic reasoning had spread throughout government policy and laws affecting poverty, healthcare, antitrust, transportation, and the environment.

Format: Paperback / softback
Length: 344 pages
Publication date: 08 August 2023
Publisher: Princeton University Press

Between the 1960s and 1980s, a unique way of thinking known as "economic style of reasoning" gained dominance in Washington, shaping public policy debates and limiting progressive ambitions. This approach, introduced by liberal technocrats seeking to improve government, was rooted in economics but also influenced law and policy. At its core was an economic understanding of efficiency, which often aligned with Republicans and conflicted with liberal Democrats who advocated for rights, equality, and corporate power limits. By the Carter administration, economic reasoning had permeated government policy and laws affecting poverty, healthcare, antitrust, transportation, and the environment. Fearing waste and overspending, liberals restrained their ambitions for decades, even as Reagan and his Republican successors promoted economic efficiency when it served their own goals.

Thinking like an Economist, by Elizabeth Popp Berman, provides a compelling account of how American politics reached its current state and offers critical lessons for the future. With the political left resurgent today, Democrats have the opportunity to break with the past but will require abandoning the shibboleth of economic efficiency and successfully advocating for progressive policies.

The dominance of economic reasoning in Washington has had far-reaching consequences, shaping the policies that address critical social and economic issues. One of the most significant impacts is the narrowing of the policy agenda. Economic style of reasoning emphasizes efficiency, cost-benefit analysis, and market-driven solutions, which can lead to policies that prioritize short-term gains over long-term sustainability and social well-being. This has resulted in a lack of attention to issues such as income inequality, climate change, and healthcare reform, which require comprehensive and systemic solutions.

Another consequence of economic reasoning is the erosion of democratic participation and representation. Economic style of reasoning tends to prioritize the interests of powerful corporations and wealthy individuals over the needs and voices of ordinary citizens. This has led to a concentration of power in the hands of a few and a lack of accountability and transparency in government decision-making. The influence of lobbyists and special interests further exacerbates this problem, as they can lobby for policies that benefit their clients at the expense of the public good.

Furthermore, economic reasoning has contributed to the polarization of American politics. The emphasis on economic efficiency and individualism has created a divide between those who prioritize economic growth and those who prioritize social welfare. This has led to a political landscape where ideological differences are stark and compromise is difficult to achieve. The rise of populist movements and the emergence of authoritarianism in some countries can also be attributed to the dominance of economic reasoning, as it has provided a justification for policies that prioritize the interests of a few over the collective good.

To address these challenges, it is essential to challenge the dominance of economic reasoning and promote a more progressive and inclusive approach to public policy. This can involve adopting policies that prioritize social welfare, environmental sustainability, and economic equality, as well as promoting democratic participation and representation. It can also involve challenging the power of corporations and wealthy individuals and promoting transparency and accountability in government decision-making.

In conclusion, the dominance of economic reasoning in Washington between the 1960s and 1980s has had profound consequences for public policy and American politics. It has narrowed the policy agenda, eroded democratic participation and representation, and contributed to the polarization of American politics. To address these challenges, it is essential to promote a more progressive and inclusive approach to public policy that prioritizes social welfare, environmental sustainability, and economic equality. By challenging the power of corporations and wealthy individuals and promoting transparency and accountability in government decision-making, we can create a more just and equitable society.

Weight: 560g
Dimension: 157 x 235 x 27 (mm)
ISBN-13: 9780691248882