Best Selling Books by James Kwak

Here is a bracing deconstruction of the framework for understanding the world that is learned as gospel in Economics 101, regardless of its imaginary assumptions and misleading half-truths. Economism: an ideology that distorts the valid principles and tools of introductory college economics, propagated by self-styled experts, zealous lobbyists, clueless politicians, and ignorant pundits. In order to illuminate the fallacies of economism, James Kwak first offers a primer on supply and demand, market equilibrium, and social welfare: the underpinnings of most popular economic arguments. Then he provides a historical account of how economism became a prevalent mode of thought in the United States—focusing on the people who packaged Econ 101 into sound bites that were then repeated until they took on the aura of truth. He shows us how issues of moment in contemporary American society—labor markets, taxes, finance, health care, and international trade, among others—are shaped by economism, demonstrating in each case with clarity and élan how, because of its failure to reflect the complexities of our world, economism has had a deleterious influence on policies that affect hundreds of millions of Americans.

A legendary lawyer and a legal scholar reveal the structural failures that undermine justice in our criminal courts “An urgently needed analysis of our collective failure to confront and overcome racial bias and bigotry, the abuse of power, and the multiple ways in which the death penalty’s profound unfairness requires its abolition. You will discover Steve Bright’s passion, brilliance, dedication, and tenacity when you read these pages.” —from the foreword by Bryan Stevenson Called “passionate and eye-opening” by Booklist, The Fear of Too Much Justice, by the legendary death penalty attorney Stephen B. Bright and legal scholar James Kwak, offers a heart-wrenching overview of how the criminal legal system fails to live up to the values of equality and justice. The book ranges from people convicted of crimes and condemned to death because of their race and poverty to poor people squeezed for cash by private probation companies because of trivial violations. Bright and Kwak also offer examples from places around the country that are making progress toward justice. With a foreword by Bryan Stevenson, and now in an accessible paperback format, this “urgent call to action . . . is an invaluable resource” (Publishers Weekly).

America is mired in debt—more than $30,000 for every man, woman, and child. Bitter fighting over deficits, taxes, and spending bedevils Washington, D.C., even as partisan gridlock has brought the government to the brink of default. Yet the more politicians on both sides of the aisle rant and the citizenry fumes, the more things seem to remain the same. In White House Burning, Simon Johnson and James Kwak—authors of the national best seller 13 Bankers and cofounders of The Baseline Scenario, a widely cited blog on economics and public policy—demystify the national debt, explaining whence it came and, even more important, what it means to you and to future generations. They tell the story of the Founding Fathers’ divisive struggles over taxes and spending. They chart the rise of the almighty dollar, which makes it easy for the United States to borrow money. They account for the debasement of our political system in the 1980s and 1990s, which produced today’s dysfunctional and impotent Congress. And they show how, if we persist on our current course, the national debt will harm ordinary Americans by reducing the number of jobs, lowering living standards, increasing inequality, and forcing a sudden and drastic reduction in the government services we now take for granted. But Johnson and Kwak also provide a clear and compelling vision for how our debt crisis can be solved while strengthening our economy and preserving the essential functions of government. They debunk the myth that such crucial programs as Social Security and Medicare must be slashed to the bone. White House Burning looks squarely at the burgeoning national debt and proposes to defuse its threat to our well-being without forcing struggling middle-class families and the elderly into poverty. Carefully researched and informed by the same compelling storytelling and lucid analysis as 13 Bankers, White House Burning is an invaluable guide to the central political and economic issue of our time. It is certain to provoke vigorous debate.

Once upon a time, the Democrats were the party of the people-of the New Deal, unions, and the War on Poverty. The New Democrats, Bill Clinton, and Barack Obama changed all that. Scarred by the Reagan Revolution, they abandoned their party''s historical identity. They embraced the idea that markets are the source of prosperity and government''s role is to nurture private sector growth, which would help both the 1% and the 99%. This idea has failed. Inequality has grown to historic proportions, and many families struggle with constant economic insecurity. In choosing markets over people, the party abandoned lower- and middle-income families-and by 2016, they no longer knew what the Democrats stood for. If we are to reverse the tide of inequality and to defend our country from President Trump and the Republicans, we must take back our party. It is time to restore the vision of Franklin Roosevelt: that a decent society takes care of all its citizens and ensures them the basic necessities of life. It is time for the Democratic Party to represent the people once again.

From America''s first bank to the financial crisis during Bush''s second term, Simon Johnson and James Kwak discuss what works and what doesn''t in the world''s financial business.

The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner''s confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small network of financial sector executives during a time of acute crisis and heightened policy discretion.