Jeff Madrick

Jeff Madrick is a senior fellow at the Roosevelt Institute and the Schwartz Center for Economic Policy Analysis at the New School and the editor of Challenge magazine.

Recent Articles

Why Economists Cling to Discredited Ideas

Free-market theory may be at odds with reality, but it fits the needs of the rich and the powerful.

(iStockPhoto/© Dimitrios Stefanidis)
This article appears as part of a special report, "What the Free Market Can't Do," in the Winter 2015 issue of The American Prospect magazine. Subscribe here . Despite the practical failures of free-market economics, too many mainstream economists have continued to embrace simplistic ideas about how the economy works. Such ideas are often rooted more in ideology than in evidence. These beliefs and the policies that follow led directly to the 2008 financial crisis and the Great Recession. They also centrally contributed to the nation’s subpar performance beginning in the late 1970s, and to our widening inequality. They continue to endanger America’s economic health. The mainstream of the profession claims to qualify oversimplified free-market ideas. But when it comes to key policy choices, the premise that markets are efficient usually trumps a more complex analysis. Thus, most mainstream economists are usually for less regulation even when more is required. They argue for...

Scarcity Came to Town

Two leading minds on our lean times

Jeff Madrick , the author most recently of Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present (Knopf), exchanges questions and ideas with Thomas Byrne Edsall , whose book The Age of Austerity: How Scarcity Will Remake American Politics (Doubleday) is out this week. Madrick : Your book places the current extreme partisanship in its critical economic context. There are cultural and religious conflicts in America, but it is economic scarcity that underlies much of our political paralysis. Is that so—scarcity lately more than culture? And scarcity has tended to favor conservatives? Edsall : Scarcity trumps culture, but it would be a mistake to view culture and the economy as inhabiting discrete spheres. Diminishing resources tend to push people in a conservative direction by increasing pressure to protect one’s own interests while simultaneously lessening generosity of spirit. Scarcity sharpens survival instincts, leading to a dog-eat-dog...