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Preface xiii

Chapter 1 Dialogue of the Deaf 1

What to Do About It

What Went Wrong: Origins of the Dialogue of the Deaf

The Role of Deductive versus Inductive Logic in Policy Analysis

The Illogic of Policy Analysis Today

What Must Be Done to Raise the Level of Debate

Chapter 2 Must There Be a Lost Decade? 23

A Socratic Dialogue with the President Explains Why Not

Reasons for Lackluster Growth During the Remainder of this Decade

'Good' versus 'Bad' Deficits, and the Main Policy Proposal

The Identifi cation and Ranking of Public Investment Projects by Their Return

When Huge Defi cits Are Justifi ed: A Unifi cation of the Arrow-Kurz and Keynesian Theories

Chapter 3 Resolving the Entitlements Spending Crisis75

How to Drive Health-Care Spending Down while Increasing Access

A Supply-Side Solution to the Health-Care Crisis

Three Basic Assumptions for an Optimal Health-Care System

Expert Systems and Automation

Redressing the Social Security Deficit

Chapter 4 Preventing Perfect Financial Storms 119

When Everyone Was Too Clever by Half

The Four Origins of Today's Financial Crisis

The Role of Bad Economic Theory

Emergence of a Pathological Incentive Structure

Requisite Policy Reforms

Chapter 5 Bargaining Theory 101 157

How Not to Deal with China

The Origins of Economics Imperialism

The Possibility of the Hegemony of Political Science: The Nash-Harsanyi Pluralistic Bargaining Model

How Not to Negotiate with Thugocracies--The Case Study of China

The Remarkable Power of the Bargaining Model in Political Science and Beyond

Chapter 6 Beyond Democratic Capitalism 199

An Idealized Political Economy, with Distributive Justice

True Textbook Capitalism, and the Correct Role of Government

Beyond Effi ciency: The Eight Ideals of an Optimal Social System

Distributional Equity

A Comprehensive Theory of Distributive Justice

Conclusion 231

Appendix A Supply/Demand Summary of the Patient Protectionand Affordable Care Act 235

Appendix B Dynamics of Total Health-Care Expenditure241

Notes 249

Index 267
A sensible solution to getting our economy back on track

Pessimism is ubiquitous throughout the Western World as thepressing issues of massive debt, high unemployment, and anemiceconomic growth divide the populace into warring political camps.Right-and Left-wing ideologues talk past each other, with neitherside admitting the other has any good ideas. In American Gridlock, leading economist and political theorist H. Woody Brock bridges the Left/Right divide, illuminating a clear path outof our economic quagmire.

Arguing from first principles and with rigorous logic, Brockdemonstrates that the choice before us is not between freemarket capitalism and a government-driven economy. Rather, thesolution to our problems will require enactment of constructivepolicies that allow 'true' capitalism to flourish even as theyincorporate social policies that help those who truly need it.

Brock demonstrates how deductive logic (as opposed toideologically driven data analysis) can transform the way we thinkabout these problems and lead us to new and different solutionsthat cross the ideological divide. Drawing on new theories such asgame theory and the economics of uncertainty that are based upondeductive logic, Brock reveals fresh ideas for tackling issuescentral to the 2012 U.S, Presidential election and to thenation's long-run future:
* Demonstrating that the concept of a government'deficit' is highly problematic since it blinds us tothe distinction between a good deficit and a bad deficit -where a deficit is good if it results from borrowing dedicated toproductive investment rather than to unproductive spending.
* Deriving the need for a U.S. Marshall Plan dedicated to veryhigh levels of profitable infrastructure spending as the solutionto today's Lost Decade of high unemployment
* Drawing upon a logical extension of the Law of Supply and Demand to demonstrate how the health-care spending crisis can becompletely resolved by letting supply increase at a faster ratethan demand
* Utilizing the theory of bargaining inaugurated by the'Beautiful Mind' mathematician John F. Nash, Jr., tohelp us avoid being repeatedly duped in our negotiations with China
* Making use of a completely new theory of market risk recentlydeveloped at Stanford University to demonstrate why dramaticallylimiting leverage is the key reform to preventing future Perfect Storms, whereas hoping to banish 'greed' amounts towhistling Dixie
* Deducting from first principles a solution to the contentiousissue of fair shares of the economic pie, a solution thatintegrates the two fundamental norms of 'to each according tohis contribution' and 'to each according to hisneed.'

Profound, timely and important, American Gridlock cutsthrough the stale biases of the Right and Left, advances new waysof thinking, and provides creative solutions to the problems thatthreaten American society.
1.3 MB
24 Monate
Adobe DRM
John Wiley & Sons

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