Leigh, Andrew (2024) The Shortest History of EconomicsBlack Inc. Books

Abstract

In his book, Andrew Leigh (2024) provides a concise overview of the development of economic thought and its historical impacts. The narrative connects major economic milestones, starting as early as the Agricultural Revolution, stretching all the way to the modern globalized economy. The book is structured chronologically, touching on key themes such as the evolution of global trade, technological advancements and the interplay between markets and societal changes.

The Shortest History of Economics identifies the Agricultural Revolution as the starting point for the story of economics. This perspective aligns with the conventional narrative that the transition from hunter-gatherer societies to settled agricultural communities was the foundation for economic systems, enabling surplus production, trade and the rise of organized markets. While this viewpoint is supported by arguably most economic historians, it has faced significant criticism, particularly in recent scholarship. One notable counterargument comes from The Dawn of Everything: A New History of Humanity by Graeber and Wengrow (2021), who challenge the deterministic view that agriculture inherently led to hierarchical societies, economic specialization, and the development of state systems. The authors argue that the focus on agriculture as the root of economic systems oversimplifies humanity's past and downplays examples of complex social and economic systems that existed before widespread farming. For instance, they highlight evidence of sophisticated trade networks, social stratification, and even monumental construction among hunter-gatherer societies, challenging the idea that these features are exclusive to agrarian economies. Leigh's reliance on the traditional narrative is likely a deliberate choice to ensure accessibility, which is understandable given the book's brevity. However, incorporating alternative perspectives would have enriched the discussion, providing a more comprehensive view for readers new to the history of economics.

The subsequent chapters delve into the rise of markets during the Industrial Revolution, a pivotal period that reshaped economies and societies globally. Leigh highlights how technological advancements, such as the steam engine, mechanized textile production, and improved transportation networks, spurred unprecedented economic growth and productivity. These innovations not only revolutionized industries but also facilitated the shift from localized economies to interconnected markets, enabling the large-scale production and distribution of goods. The focus on mass production, symbolized by the factory system, introduced new efficiencies but also created challenges, including labour exploitation, urbanization pressures, and stark wealth inequalities. Leigh uses these historical developments to illustrate how technological progress and market expansion fundamentally transformed economic systems, paving the way for the interconnected and globalized economies we see today.

While the book offers a concise overview of early economic history, Leigh devotes considerable focus to the 20th century, which he divides into distinct phases. He explores how major crises, such as the Great Depression and the World Wars, reshaped economic thought and practice, leading to the rise of Keynesian economics and the growing importance of government intervention in managing economies. Moving into the Cold War period, Leigh contrasts the ideological and economic struggles between capitalist and socialist systems, highlighting how these dynamics influenced global development. By the 1980s, the narrative shifts to the rise of neoliberal policies, marked by deregulation, privatization, and the globalization of trade and finance. Finally, the book addresses the contemporary globalized economy, examining pressing issues such as the digital revolution, the challenges posed by climate change, and the persistent problem of income inequality, tying them to the broader evolution of economic systems over the century.

One of the key themes of the book is economic inequality, a topic that Leigh addresses both historically and in the context of modern economic systems. He explores how inequality has been a persistent feature of economic development, with significant fluctuations tied to various historical events and economic policies. The book traces the widening income gap that became particularly pronounced during the Industrial Revolution, where technological advancements and the rise of mass production led to wealth accumulation for industrialists while many workers faced harsh conditions and low wages. Leigh also examines how the 20th century saw both the expansion of the welfare state in some regions, aimed at reducing inequality through social safety nets, and the rollback of such policies in others, especially during the neoliberal shift of the 1980s. The book highlights the growing disparities in wealth and income during the era of globalization, where technological changes, such as automation and the digital revolution, disproportionately benefited those with capital and skills while leaving others behind. Importantly, the book ultimately stresses that inequality is not just an economic issue but also a fundamental challenge to social cohesion, political stability, and long-term prosperity.

Alongside the focus on inequality, other key themes such as the role of technology and innovation, globalization, and government intervention, illustrate how economic systems have evolved in response to technological, social, and political changes, shaping the world we live in today. Importantly, by the final chapters, Leigh connects past lessons to contemporary challenges, urging readers to consider economics' role in addressing issues like sustainability and social equity.

There is much to like in Leigh's book, particularly its accessibility. Written for a general audience, it avoids heavy jargon, making it an excellent introduction for newcomers to economic history. Even for students just beginning to explore the subject, this book may serve as an engaging starting point and has the potential to spark a lasting interest in the field. Another key strength of Leigh's book is his engaging storytelling. He skillfully uses anecdotes, like the historical development of lighting technology, to make complex economic concepts more relatable and accessible. For instance, by tracing the evolution of gas lighting to the advent of electric lighting, he illustrates how technological advancements can transform economies and societies. He also brings economic history to life by weaving in the personal stories of major economists, such as John Maynard Keynes and Elinor Ostrom (the first woman to win the Nobel Memorial Prize in Economic Sciences), offering insight into their lives, motivations, and how their ideas shaped the course of economic thought.

The book's brevity, a characteristic common to other books in the Shortest History of Economics series, comes at a cost. While it provides a concise overview, it sometimes overlooks certain historical phases and the complexities behind key events, which may leave readers seeking a deeper understanding wanting more.¹ For instance, the book often presents a single perspective on these events, applying it to the historical narrative, as seen in the case of the Neolithic Revolution mentioned earlier. Another area that could have been explored more thoroughly is the geographical scope. Given the constraints of a shorter book, this is inevitably simplified, but as a result, the narrative tends to focus more on the history of the Western world, offering only limited discussion of non-Western perspectives.

While economic historians, or more broadly, scholars seeking advanced insights may find it lacking in detail, The Shortest History of Economics is a valuable primer for those new to economic history, offering a broad thematic overview that introduces key concepts and historical milestones.