The End of Normal: The Great Crisis and the Future of Growth
The years since the Great Crisis of 2008 have seen slow growth, high unemployment, falling home values, chronic deficits, a deepening disaster in Europe — and a stale argument between two false solutions, “austerity” on one side and “stimulus” on the other. Both sides and practically all analyses of the crisis so far take for granted that the economic growth from the early 1950s until 2000 — interrupted by the troubled 1970s — represented a normal performance. From this perspective, the crisis was an interruption, caused by bad policy or bad people, and full recovery is to be expected if the cause is corrected. The End of Normal challenges this view. Placing the crisis in perspective, Galbraith argues that the 1970s already ended the age of easy growth. The 1980s and 1990s saw only uneven growth, with rising inequality within and between countries. And the 2000s saw the end even of that — despite frantic efforts to keep growth going with tax cuts, war spending, and financial deregulation.
Why we chose this book
Although pessimistic, James Galbraith’s vision is also plausible and engaging. His analysis goes against the established discourse and merits consideration not only by economists but also by business leaders, who are desperate to return to the double-digit growth of Les Trente Glorieuses (the boom years of 1945 to 1975).
The End of Normal: The Great Crisis and the Future of Growth by James K. Galbraith (Simon & Schuster, September 2015)