Peddling Prosperity

Peddling Prosperity examines U.S. economic policy and theory from the 1970s through the early 1990s. Nobel laureate Paul Krugman analyzes the nation's productivity decline and the competing economic ideologies that emerged in response. The book traces how supply-side economics gained prominence as traditional economists struggled to explain ongoing economic challenges. Krugman evaluates monetarism, rational expectations theory, and debates around taxation and regulation that shaped policy during this period. Through detailed analysis of economic data and policy outcomes, Krugman challenges both conservative and liberal approaches. He examines the role of what he terms "policy entrepreneurs" - influential figures who promote simplified economic ideas that gain political traction despite lacking academic merit. The work stands as a critique of how economic theory becomes distorted in public discourse, highlighting the gap between rigorous academic economics and the popular ideas that often drive policy decisions.

Readers describe this book as a detailed critique of economic theories and policies from the 1980s and 1990s. Several note it provides clear explanations of complex economic concepts for non-economists. What readers liked: - Critical analysis of supply-side economics - Accessible writing style for laypeople - Historical context for modern economic debates - Technical rigor balanced with readability What readers disliked: - Political bias and dismissive tone toward conservative economists - Some sections become overly technical - Focus on 1980s/90s feels dated to modern readers - Too much attention on critiquing specific economists Ratings: Goodreads: 3.99/5 (529 ratings) Amazon: 4.2/5 (41 ratings) Common reader quote themes: "Helps understand today's economic debates" "Sometimes arrogant but informative" "Good introduction to economic policy history" "Shows flaws in popular economic theories"

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🔸 Paul Krugman won the Nobel Prize in Economics in 2008 for his work on international trade patterns and economic geography. 🔸 The term "supply-side economics," critiqued extensively in the book, gained prominence during Reagan's presidency and was famously dubbed "voodoo economics" by George H.W. Bush. 🔸 The 1970s productivity slowdown discussed in the book saw U.S. labor productivity growth drop from 3% annually in the 1950s and 60s to roughly 1% in the 1970s. 🔸 The book was published in 1994, during the Clinton administration, and became particularly relevant during debates about economic policy reforms of that era. 🔸 Krugman coined the term "policy entrepreneur" in this book, which has since become widely used in political and economic discourse to describe individuals who package and sell economic ideas for political purposes.