Description
Book SynopsisA subversive approach to economic theory, Rethinking Market Regulation explores the devastating impact of globalisation and a lack of governmental regulation on the US workforce. It challenges two key economic principles: that markets are competitive, making government intervention unnecessary, and the claim that corporations exist for the benefit of their shareholders, but not for other stakeholders. Arguing that both principles are based in myth, this book offers an insightful perspective into the plight of workers faced with widespread job losses through the merging and outsourcing of resources. Rethinking Market Regulation ties together the problems that come with using economic principles as a justification for a lack of government intervention with the harm and widespread social repercussions faced by workers. With a close focus on the personal and financial consequences of losing employment, this book offers a compelling comparison of the legal and social treatment of labor in the US and the EU, closing with the recommendation for a new regulatory regime as a prescription for the current system of mass inequality and widespread job losses. Rethinking Market Regulation is ideal for scholars, professionals and anyone else interested in gaining an alternative perspective to modern US economic theory and market regulation.
Trade ReviewJohn Drobak uses Rethinking Market Regulation: Helping Labor by Overcoming Economic Myths to make the case for stronger consideration of labor issues in merger analysis and other government decisions. A well-argued book, it draws heavily on Drobak's expertise in law and economics and his work with the late Nobel laureate Douglass North. * Claude Marx, FTCWatch *
Rethinking Market Regulation is a timely and much needed rebuttal to the economic analysis that has justified decades of corporate outsourcing of millions of jobs and the legitimization of massive executive compensation in our country during hard times for many employees. Drobak, contrary to Wall Street Myth, fervently believes greed is not good and urges several thoughtful proposals for change, notably including adding labor representation to corporate boards and creating a new Federal review board for mergers to assess the expected displacement of labor. This is a stellar work that deserves the widest possible readership. * Joel Seligman, President Emeritus and University Professor, University of Rochester, Dean Emeritus and Professor, Washington University School of Law *
Rethinking Market Regulation tells a challenging story about labor markets. A legal scholar and a long-term intellectual partner to Douglass North, the author undercuts the ongoing economic narrative about the benefits of the so-called workforce flexibility and the presumably 'intractable' rigidities introduced by labor regulations. His interpretation provides substantial food for thought about the ongoing divisions of American society and, more generally, about rising populism everywhere. * Claude Ménard, Professor of Economics, Centre d'Economie de la Sorbonne *
In this extremely valuable and insightful book, John Drobak dismantles the many economic myths that have prevented America from moving toward a more socially just society. Rethinking Market Regulation provides a critical refutation of past orthodox thinking and policies, delivering a much-needed blueprint for where we need to be heading in the future. * Mark R. Rank, Herbert S. Hadley Professor of Social Welfare, Washington University in St. Louis *
In this thought-provoking book, John Drobak invites us to take a new look at markets and regulation, by challenging many of the standard assumptions made by economists. Perhaps Drobak's biggest idea rests on citizen/voter beliefs about the market. If a large portion of Americans become disillusioned with markets because they believe markets work only for the rich, then it risks a political backlash. This is a recipe for populism and anti-market policies. * Barry R. Weingast, Ward C. Krebs Family Professor of Political Science, Stanford University *
Table of ContentsChapter 1 - Introduction Chapter 2 - The Theory of Competitive Markets Chapter 3 - Lack of Competition in U.S. Markets Chapter 4 - The Effects of Mega-Mergers Chapter 5 - Corporate Stakeholders Chapter 6 - Outsourcing in the U.S. and Europe Chapter 7 - Legitimization of Greed - Heartbreak to Workers Chapter 8 - Belief Systems and Confirmation Bias Chapter 9 - Recommendations Chapter 10 - Postscript Bibliography Appendix A - Profitability of the Four Major Airlines Appendix B - Methods to Determine Concentration Appendix C - Results of Concentration Studies Appendix D - Congressional Bills Regulating Outsourcing
