23 of 24 people found the following review helpful
Innovation and the Future,
This review is from: From Poverty to Prosperity: Intangible Assets, Hidden Liabilities and the Lasting Triumph over Scarcity (Hardcover)
In the 20th century, whenever markets failed, the temptation was to impose a big-government intervention to address the situation. In "From Poverty to Prosperity", Arnold Kling and Nick Schulz argue for an approach that they describe as "Economics 2.0", an approach in which free markets and even more innovation should be used whenever markets fail.
The authors believe that, in the future, the greatest improvements in living standards will come from ideas and inventions. They emphasize the role of innovation and describe some of the societal conditions that encourage it, such as strong property rights and the rule of law, and also describe other "rent-seeking" activities that stifle innovation, such as lobbying and the propping up of obsolete functions, activities that introduce distortions into the economy.
Trends in modern economics are examined, such as the move away from hard mathematical models toward a more sociological-based approach.
Because advances in the future will be innovation-driven, the question of intellectual property rights and how strongly they should be protected will come to the fore, and Kling and Schulz look at that important debate.
A great part of the book consists of interviews that the authors conduct with leading economists discussing these developments and issues, and there are numerous charts concerning GDP per capita, health, leisure, and life expectancy that show how well-off we are compared to the past. The book is a good study of where economics is going and is an important reminder of the importance of free markets, private property, and innovation.