New Model of the Economy is without a doubt a work of monumental proportions. I say this not lightly: This work deserves my wholehearted endorsement. Written in the tradition of the School of Economic Science in London, which traces its lineage back to economic giants such as Henry George (many of whom, like George, were marginalized from mainstream economic thought due to resistance from wealthy interests), this book presents as rational and as clear a theory of economic prosperity for the whole of society as I’ve ever seen. You cannot help but agree with its conclusions, since they are not only based on a sound and logical framework, but are also explained with a healthy dose of common sense.
Much of mainstream economic thought is sadly an insult not only to logic and scientific thinking but also to humanity overall due to its utter disregard of treating land—nature—as a separate “factor of production”; instead, the so-called “neoclassical” economic school treats land as a capital good to be exploited for private gain, no different from objects like cars or computers. Most economic models based on this lack of distinction incur flaws that lead to incorrect economic forecasts and faulty economic applications in addressing social issues such as wealth inequality or ecocide.
Not A New Model of the Economy, however. From the start, A New Model of the Economy systematically recognizes land as a critical factor of production—separate from labor and capital—and thereby properly sets the stage for an in-depth analysis of what causes various social ailments such as wealth inequality, poverty, or the destruction of the environment.
Capitalism fails to understand the difference between beneficial profits (incomes that are created from production with the help of labor and the application of privately-owned capital goods, leading to net benefits to society) and monopoly profits (incomes that are extracted from society without the provisioning of a corresponding benefit to society) and has thus failed to bring prosperity to all. The injustices of capitalism have in turn caused the rise of communism as a backlash response, but communism, too, has failed to understand the difference between beneficial profits and monopoly profits, and has thus attempted to banish all forms of private wealth creation altogether, predictably leading to disastrous results. Socialism, meanwhile, attempts to do a little of both. But as A New Model of the Economy coherently explains, there is an alternative path: a path that would bring unprecedented prosperity to the whole of society.
I highly recommend this book to anyone who wishes to gain an in-depth understanding of economics, and especially to policymakers and economists worldwide.
—Martin Adams, author Land: A New Paradigm for a Thriving World
© Text Copyright 2016 Martin Adams under a Creative Commons copyright. Some rights reserved.