The Great Unraveling: Losing Our Way in the New Century by Paul Krugman

One Sentence Summary:

The Great Unraveling by Paul Krugman is a scathing critique of the economic and political policies of the early 21st century that led to a sharp increase in inequality and instability.

Book Genre:

Non-fiction, economics, politics

Main Topic of the Book:

The book discusses the disastrous consequences of the economic policies and political decisions made in the early 21st century, particularly in the United States, that resulted in a significant increase in inequality and economic instability.

Key Ideas:

• Unbridled capitalism and faulty economic theories have played a major role in the economic and political turmoil of the early 21st century.
• The pursuit of tax cuts and deregulation has contributed to the sharp rise in inequality.
• Political polarization and the influence of special interest groups have hindered effective economic and political policies.
• Globalization and its effects on labor and trade have been mismanaged, leading to job losses and stagnant wages for many workers.
• The lack of government intervention and regulation has allowed corporations and the wealthy to amass more power and wealth at the expense of the middle and working classes.

Main Parts of the Book and a Short Summary:

1. The Great Inequality: This section examines the sharp increase in income, wealth, and power disparities in the early 21st century, the role of government policies and misguided economic theories in creating and perpetuating this trend, and the consequences it has on society.
2. The Great Tax Breakdown: In this part, Krugman critiques the obsession with tax cuts and dismantling of regulations, arguing that they have worsened inequality and contributed to economic instability.
3. The Great Polarization: The author discusses the growing divide between the two major political parties, the influence of special interest groups, and their impact on policymaking.
4. The Great Divergence: This section delves into the effects of globalization on labor and trade, how it has been mishandled, and the resulting consequences for workers and the economy.
5. The Great Unraveling: The final section ties together all the key ideas discussed in the previous parts, highlighting the disastrous consequences of the policies and decisions made in the early 21st century and offering insights on how to move forward.

Key Takeaways:

• The rise in inequality in the early 21st century is not a natural occurrence, but rather a result of specific policies and decisions made by governments.
• The pursuit of tax cuts and deregulation has exacerbated inequality and economic instability.
• Political polarization and the influence of special interest groups have hindered effective policymaking to address inequality and other pressing issues.
• The mismanagement of globalization has had negative consequences for workers and the economy.
• Change is needed to reverse the trends of the early 21st century and create a more equitable and stable society.

Author’s Background and Qualifications:

Paul Krugman is an American economist and professor at the City University of New York Graduate Center. He is a Nobel Prize winner in economics and has authored numerous books and articles on economics, including his popular New York Times column. Krugman is well-respected in the field of economics, making his analysis and criticisms of economic policies and theories in The Great Unraveling highly credible.

Target Audience:

The target audience for this book is anyone interested in understanding the economic and political landscape of the early 21st century, particularly in the United States, and how it has contributed to increasing inequality and instability. It is also relevant for those interested in alternative economic and political approaches to address these issues.

Publisher and First Publication Date:

W. W. Norton & Company, September 2003

Go Back