Dean Baker Boeken

This book, first published in 2007, describes the sharp right turn the US has taken following Ronald Reagan's election in 1980.

Progressives need a fundamentally new approach to politics. They have been losing not just because conservatives have so much more money and power, but also because they have accepted the conservatives’ framing of political debates. They have accepted a framing where conservatives want market outcomes whereas liberals want the government to intervene to bring about outcomes that they consider fair. This puts liberals in the position of seeming to want to tax the winners to help the losers. This "loser liberalism" is bad policy and horrible politics. Progressives would be better off fighting battles over the structure of markets so that they don't redistribute income upward. This book describes some of the key areas where progressives can focus their efforts in restructuring the market so that more income flows to the bulk of the working population rather than just a small elite.

A leading economist explores how our economic arrangements could improve by applying basic principles without ideological blinders. Dean Baker argues that while economics itself is sound, economists often neglect their own principles in policy discussions. He questions what policy would look like if mainstream economic principles were applied consistently. For instance, in the regulation debate, Baker—who predicted the 2008 financial meltdown—highlights that the concept of a “free market” is a myth, as modern markets are heavily regulated. Intrusive regulations, such as copyright and patents, are often overlooked as regulatory devices. Recognizing the extent of regulation opens up more options for policy design and determining beneficiaries. In health care reform, Baker points out that economists frequently disregard the principle of marginal cost pricing. Medical services are priced significantly higher than production costs, a discrepancy rarely addressed in reform discussions. He suggests that applying marginal cost pricing could lead to competitive wages for doctors and lower prices for prescription drugs and medical tests. This exploration offers an alternative perspective on economic principles, encouraging a return to basics to address the most pressing issues in our economy.

Challenging the perception of conservative economic principles, Dean Baker reveals how conservative policies often favor the wealthy through government intervention rather than true market reliance. He argues for a shift in economic policy that prioritizes social outcomes, such as fair wages, quality jobs, and accessible healthcare. As co-director of the Center for Economic and Policy Research, Baker advocates for a reformed approach to harness market forces for the benefit of all Americans.

The book explores the significant upward redistribution of income in the United States over the past four decades, attributing it to deliberate policy decisions rather than globalization or market forces. It highlights how various rules regarding trade, patents, copyrights, corporate governance, and macroeconomic policy have been manipulated to suppress wages for ordinary workers while benefiting the wealthiest individuals. Through this analysis, the author sheds light on the systemic factors contributing to income inequality.