The Economics of Great Powers from Ancient Rome to Modern America
Simon & Schuster, Hardcover, 9781476700250, 368pp.
Publication Date: May 21, 2013
In this groundbreaking book, two economists explain why economic imbalances cause civil collapse and why the United States could be next.
From the Ming Dynasty to Ottoman Turkey to imperial Spain, the Great Powers of the world emerged as the greatest economic, political, and military forces of their time only to collapse into rubble and memory. What is at the root of their demise and how can the United States stop this pattern from happening again?
A quarter century after Paul Kennedy's The Rise and Fall of the Great Powers, Glenn Hubbard and Tim Kane present a bold, sweeping account of why powerful nations and civilizations break down under the heavy burden of economic imbalance. Introducing a profound new measure of economic power, Balance traces the triumphs and mistakes of imperial Britain, the paradox of superstate California, the long collapse of Rome, and the limits of the Japanese model of growth. Most importantly, Hubbard and Kane compare the twenty-first-century United States to the empires of old and challenge Americans to address the real problems of our country's dysfunctional fiscal imbalance. If there is not a new economics and politics of balance, they show that there will be an inevitable demise ahead.
Tim Kane is the chief economist of the Hudson Institute, veteran Air Force officer, and has twice served at the Joint Economic Committee of the US Congress. He regularly writes for "The Atlantic, The New York Times", "Los Angeles Times", and "USA TODAY" and is a well-known public speaker. He lives in northern Virginia with his wife and children.
Currently the Russell L. Carson Professor of Economics and Finance at the Graduate School of Business, and the Professor of Economics in the Department of Economics at Columbia University, Glenn Hubbard received his B.A. and B.S. from the University of Central Florida and A.M. and Ph.D. in economics from Harvard University, where he was honored with both National Science Foundation and Alfred P. Sloan Foundation fellowships.
"A book with riveting historical perspective for careful thought about where we are and where we can go if we get it right."
-The Honorable George P. Shultz, Hoover Institution
"Hubbard and Kane synthesize economics, politics and psychology to develop a new audacious theory of why countries decline. Compulsory reading for anyone who wants to understand the major issues that America now faces and whether decline can be averted, or will instead become inevitable."
-James Robinson, co-author of Why Nations Fail
“In seeking to discover what might be common factors throughout history to explain the rise and decline of powerful states, Hubbard and Kane have succeeded in identifying surprisingly similar trajectories. Their thought-provoking analysis has compelling relevance for America’s future.”
-Henry A. Kissinger
"Political paralysis leading to fiscal collapse is the “existential threat” facing America, argues this stimulating, contentious economic history... Theirs is political economy with a grand historical sweep—and provocative implications for the present."
“Offers some policy proposals that ought to be taken seriously, even by those who don’t agree with all their premises. At the very least, some of these ideas could be used as blueprints for the rare politician seeking some acceptable grounds for compromise.”
“A readable, data-rich history of the fall of great powers through the eyes of two fiscally troubled US conservatives in 2013.”
“The history of economic folly that they skillfully recount in ‘Balance’ is a timely reminder that societies that seem invincible are often anything but.”