My "brother-in-law" JJ lent me the book Zombie Economics: How Dead Ideas Still Walk Among Us by John Quiggin published in 2010 by Princeton University Press. Quiggen is a professor of economics at an Australasian University and the book is very academic.
He argues that a rational analysis of the world economic situation through the economic crises of 2008 prove that several common economic assumptions have been proven false. But like Zombies though killed still walk among us.
These assumptions or points of view are 1. The great moderation, 2, The efficient markets hypothesis (markets know best) 3.dynamic stochastic general equilibrium (there's some magic balance between unemployment and full production) 4. trickle down economics, and 5. privatization. He says that all of these theories or ideas have been found to have serious fatal defects yet they continue to influence politics and political discussion with little reflection on their inadequacies. It is not easy reading for non-economists but contains much valuable information based on research and the work of many other economists.
The book Giftopia: Bubble Machines, Vampire Squids and the long con that is Breaking America by Matt Taibbi covers much of the same ground. However, Taibbi is a journalist, not an economist so it is much easier reading. I recommend them both.
