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Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer Paperback – October 6, 2016
| Dean Baker (Author) Find all the books, read about the author, and more. See search results for this author |
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There has been an enormous upward redistribution of income in the United States in the last four decades. In his most recent book, Baker shows that this upward redistribution was not the result of globalization and the natural workings of the market. Rather, it was the result of conscious policies that were designed to put downward pressure on the wages of ordinary workers while protecting and enhancing the incomes of those at the top. Baker explains how rules on trade, patents, copyrights, corporate governance, and macroeconomic policy were rigged to make income flow upward.
- Print length258 pages
- LanguageEnglish
- Publication dateOctober 6, 2016
- Dimensions6 x 0.65 x 9 inches
- ISBN-100692793364
- ISBN-13978-0692793367
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Editorial Reviews
Review
--Jared Bernstein, Former Chief Economic Adviser to Vice President Joe Biden
"This is an important and compelling book about how the rules governing the American economy have been rigged in favor of those with the wealth and political clout to rig them. Baker shows why and how the nation's staggering inequality has been the consequence of staggeringly unequal political influence."
--Robert B. Reich, Former Secretary of Labor
"Dean Baker's timely book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer is a must-read for the many who believe the status quo is unsustainable. In clear and compelling terms, Baker makes the case for rewriting the rules so that markets lead to truly progressive outcomes."
--Katrina vanden Heuvel, Editor and Publisher of The Nation
"The era in which all economic policy discussion started from conservative premises that lent themselves to conservative solutions is coming to an end. Conservatives have become caricatures, warning of nonexistent inflation and promoting tax cuts for the rich as the solution to every problem. We are poised for a new progressive era of thinking and policy to deal with festering problems, such as rising inequality and slowing productivity growth, that conservatives are incapable of grasping, let alone dealing with. This book represents fresh thinking for a new progressive era. It may be for the Left what George Gilder's Wealth and Poverty was for the Right."
--Bruce Bartlett, Former aide to Ron Paul and Jack Kemp (U.S. Congress), Ronald Reagan (White House/OPD) and George H.W. Bush (Treasury Dept/Economic Policy)
"High U.S. inequality is the product of conscious policy choices, argues Dean Baker in this excellent and provocative book. He identifies five areas in which the "upward distribution" induced by policies should be reversed: macroeconomics that focus on low inflation only; asymmetric treatment of privatized gains and socialized losses in the finance industry; heavy protection of patent rights at home and abroad; protection of high-skill occupations from foreign competition; and out-of-bounds CEO pay. By identifying five clear areas and giving concrete proposals for a change, Baker's book should be seen as a road map for future U.S. policymakers who wish to bring income and wealth inequality back to sustainable levels."
--Branko Milanovic, Author of Global Inequality: A New Approach for the Age of Globalization
About the Author
Product details
- Publisher : Center for Economic and Policy Research; 1st edition (October 6, 2016)
- Language : English
- Paperback : 258 pages
- ISBN-10 : 0692793364
- ISBN-13 : 978-0692793367
- Item Weight : 13.4 ounces
- Dimensions : 6 x 0.65 x 9 inches
- Best Sellers Rank: #486,504 in Books (See Top 100 in Books)
- #259 in Macroeconomics (Books)
- #393 in Economic Policy
- #500 in Economic Policy & Development (Books)
- Customer Reviews:
About the author

Dean Baker co-founded CEPR in 1999. His areas of research include housing and macroeconomics, intellectual property, Social Security, Medicare and European labor markets. He is the author of several books, including Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. His blog, "Beat the Press," provides commentary on economic reporting. He received his B.A. from Swarthmore College and his Ph.D. in Economics from the University of Michigan.
His analyses have appeared in many major publications, including the Atlantic Monthly, the Washington Post, the London Financial Times, and the New York Daily News. He received his Ph.D in economics from the University of Michigan.
Dean has written several books, his latest being Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer (Center for Economic and Policy Research 2016). His other books include Getting Back to Full Employment: A Better Bargain for Working People (with Jared Bernstein, Center for Economic and Policy Research 2013), The End of Loser Liberalism: Making Markets Progressive (Center for Economic and Policy Research 2011), Taking Economics Seriously (MIT Press 2010) which thinks through what we might gain if we took the ideological blinders off of basic economic principles; and False Profits: Recovering from the Bubble Economy (PoliPoint Press 2010) about what caused — and how to fix — the current economic crisis. In 2009, he wrote Plunder and Blunder: The Rise and Fall of the Bubble Economy (PoliPoint Press), which chronicled the growth and collapse of the stock and housing bubbles and explained how policy blunders and greed led to the catastrophic — but completely predictable — market meltdowns. He also wrote a chapter ("From Financial Crisis to Opportunity") in Thinking Big: Progressive Ideas for a New Era (Progressive Ideas Network 2009). His previous books include The United States Since 1980 (Cambridge University Press 2007); The Conservative Nanny State: How the Wealthy Use the Government to Stay Rich and Get Richer (Center for Economic and Policy Research 2006), and Social Security: The Phony Crisis (with Mark Weisbrot, University of Chicago Press 1999). His book Getting Prices Right: The Debate Over the Consumer Price Index (editor, M.E. Sharpe 1997) was a winner of a Choice Book Award as one of the outstanding academic books of the year.
Among his numerous articles are "The Benefits of a Financial Transactions Tax," Tax Notes Vol. 121, No. 4 (2008); "Are Protective Labor Market Institutions at the Root of Unemployment? A Critical Review of the Evidence," (with David R. Howell, Andrew Glyn, and John Schmitt), Capitalism and Society Vol. 2, No. 1 (2007); "Asset Returns and Economic Growth," (with Brad DeLong and Paul Krugman), Brookings Papers on Economic Activity (2005); "Financing Drug Research: What Are the Issues," Center for Economic and Policy Research (2004); "Medicare Choice Plus: The Solution to the Long-Term Deficit Problem," Center for Economic and Policy Research (2004); The Benefits of Full Employment (also with Jared Bernstein), Economic Policy Institute (2004); "Professional Protectionists: The Gains From Free Trade in Highly Paid Professional Services," Center for Economic and Policy Research (2003); and "The Run-Up in Home Prices: Is It Real or Is It Another Bubble," Center for Economic and Policy Research (2002).
Dean previously worked as a senior economist at the Economic Policy Institute and an assistant professor at Bucknell University. He has also worked as a consultant for the World Bank, the Joint Economic Committee of the U.S. Congress, and the OECD's Trade Union Advisory Council. He was the author of the weekly online commentary on economic reporting, the Economic Reporting Review (ERR), from 1996–2006.
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Top reviews from the United States
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1. Macroeconomic policies determining levels of employment and output
2. Financial Regulation and the structure of the financial markets
3. Patent and copyright monopolies and alternative mechanisms for financing innovation and creative work
4. Pay of chief executive officers (CEOs) and corporate governance structures
5. Protections for highly paid professionals such as doctors and lawyers
In #1 which includes the rigged policy on trade as free trade, Baker missed the failure to include flows of intangible capital (IC).
As EPI has stated, “ … between 2000 and 2007, growing trade deficits in manufactured goods led to the loss of 3.6 million manufacturing jobs in that period.”
Trade driven by offshoring has caused a large loss in manufacturing jobs. A change in trade policy can return many manufacturing jobs to the USA and stop many additional losses. However, Trump is fighting trade with a weak argument that has no legal justification.
The right legal argument recognizes that trade policy doesn’t account for the theft of public intangible capital (IC) financed with public investments. Failed trade policy is based on a paradigm of comparative advantage but doesn’t penalize offshoring that is advantaged by the theft of public IC. Economics currently ignores the theft of public IC by a company that does offshoring where the IC is a product of public investments in national defense, federal R&D, domestic security, healthcare, education and infrastructure.
Trade policy currently protects the theft of many types of private IC such as patents but ignores the theft of public IC. The theft of public IC occurs when business operations at a company with jobs and factories are first established in America with public IC created as a result of public investments in IC that get translated into business IC and then moved offshore with proven business capabilities (both tangible and intangible capital) consisting of knowledge, tools, technology and processes. Since 1992, IC has been a larger part of business investments as a part of GDP in America than tangible capital.
Theft of public IC in offshoring creates a negative externality in economics that is similar to pollution of public resources penalized in environmental regulation. Trade imbalances don’t measure the flows of IC. Measuring the flows of IC created with public investments is a prerequisite for properly governing offshoring in globalization. The new international activity in Integrated Reporting is changing financial reporting in business to measure both tangible capital and IC.
Regulations on offshoring should require repayment of the apportioned public investments that produced the IC used for manufacturing operations at a company with a tax of at least 20% on the value of traded goods sent back to America from offshored factories.
Finally, Baker should consider political strategies and messages more than he does. For example, The 2008 book - Grand New Party: How Republicans Can Win the Working Class and Save the American Dream - apparently served to help Trump beat HRC by crafting a message that would appeal to the white working class. Of course, the message from Trump doesn't appear to be connected to a solution to solve the problem of stagnant wages and income inequality.
Nor does Baker seem to realize that in a world facing limits-to-growth, a capitalist economy may become impossible to sustain. That is, capitalism is designed to concentrate wealth and power, unless severely constrained, as in the Scandinavian countries or in the US itself from the 40s through the 60s. When the growth imperative falters, as it must, the capitalists are quick to blame the constraints, hence the escalating inequality since Reagan and Thatcher. Finally, the dynamic of the “rich get richer, while the poor get poorer” itself reaches a breaking point, as it must, hence Trump.
Though missing this big picture, Baker has some wonderful ideas for slashing the horrendous waste that plagues US capitalism. For example, he’d take most medical R & D into the public domain, more like the US military, where the big companies work under contract. Except, full public disclosure would be required instead of patents, resulting in drug prices that would fall by 99% for today’s most expensive drugs. Then he’d take on the monopoly power that produces extravagant doctors’ salaries, bypassing their political power by promoting medical tourism, even to India. [While bicycling in India in 2004 a kidney stone put me in a hospital in Hyderabad, so I experienced first hand the high quality and extremely low cost of medical care in India.]
This book includes all the numbers you need too, such as low and high estimates of cost savings. Besides the medical establishment, he takes on other professions, plus Wall Street, corporate governance, taxes, trade, even textbooks, all with an eye inequality and waste. Yet he doesn’t examine the bloated Pentagon budget or fossil fuel subsidies. And the simplistic economic models that start off chapter 1 leave me longing for a little more real world depth and complexity.
I also feel that although Mr. Baker demonstrates his keen knowledge of his subject matter, he gives way too many examples; the book could, and should have been written in 100 pages. Also he constantly uses the word "rents" in unusual ways which confuse me...does he mean profits, wages, unusual inflation? I can't figure it out even tho I've looked up its meaning in order to make sense of his ideas.
Bob Bogner author of "Wilder
Top reviews from other countries
The book is not about the hands of a deep state or a wealthy multi-generation family; Also, the author do not give any advice on protecting individual wealth or cool investment techniques.
Dean Baker has beautifully elaborated the flow of money through the economy and how it finally accumulates in the hands of a few wealthy people. I can pretty much visualise it and I now understand a a great deal on why the western economies are stagnant.
Although the author has mentioned lots of alternatives or policy change recommendations, I see none of them happening any time soon.
Some parts of the book are a little dry and I encountered the repetitive mentioning of the same concept a few times. Overall the book is very informative and I recommend it.



