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4.11 AVERAGE
4.11 AVERAGE
I really wish I could give this book a better rating.
I dove in prepared to agree with the author and discover the nuance of what an overly robust financial sector does to economies, why, how and what to do about it. Some of that Shaxson did deliver and there were a few chapters I found quite engaging and informative, for example, the ones where he talks about the “Celtic Tiger” and offshore finance (makes sense, he authored an entire separate book on the topic of tax havens). His breakdown of some key economic ideas of the previous century, neoliberal thought etc. in the beginning of the book also struck me as quite fair and successful.
However, the further I went into the book, the more sensationalist, “finger-pointy” and comical Shaxson’s arguments and rhetoric became. He is quick with exclamations of mock horror at companies facing a possible need to file US tax returns, inexplicably insists on using words like “titan” to describe hedge fund managers or junk-bond-fueled raiders and labels anything even remotely complex in the financial world “squirrelly business”.
Perhaps, I am just a jaded corporate drone, but a lot of his fist-shaking leaves me shrugging my shoulders. There are many destructive aspects to contemporary global finance (oh wow, who knew?), I am trying to learn more about them, not get an earful of moralistic sensationalizations about pension funds getting swindled and taxes being avoided. Even when his general points are reasonable and true the tabloid language makes them next to impossible to absorb. Here is an especially egregious example of what so irks me:
If this kind of delivery is you cup of tea, you doubtless will enjoy the book much more than I did.
Shaxson does a fair bit of introductory explaining throughout the book, which some readers may find very useful, but I personally did not. He is very clear and brief in these summaries, but goes a little too far, for example, breaking down what bank balances are, which seems redundant in a book not targeted at children. I wish he spent time unpacking more complex concepts mentioned in the book, such as different kinds of trusts or some “typical” ways to structure chains of offshore corporations, rather than focused on the simpler foundational terms.
Lastly, while I find the whole idea of “the finance curse” compelling and its existence demonstrable, I am concerned Shaxson stretches it too far, for example, concluding the book with a chapter on CAFOs. Are they terrible? Yes. Are contemporary farming and agricultural practices horrid in general? Yes. Are they a manifestation of “the finance curse”? I am not convinced. The book does successfully demonstrate the bloat and questionable practices in the financial sector, but comes up short trying to expose its poisonous influence on the rest of the economy. Again, I am already in agreement with the author’s thesis, and I was hoping he would elegantly put relevant arguments into words, alas, he doesn’t accomplish that in this book.
Thanks to NetGalley for a digital ARC of this book.
I dove in prepared to agree with the author and discover the nuance of what an overly robust financial sector does to economies, why, how and what to do about it. Some of that Shaxson did deliver and there were a few chapters I found quite engaging and informative, for example, the ones where he talks about the “Celtic Tiger” and offshore finance (makes sense, he authored an entire separate book on the topic of tax havens). His breakdown of some key economic ideas of the previous century, neoliberal thought etc. in the beginning of the book also struck me as quite fair and successful.
However, the further I went into the book, the more sensationalist, “finger-pointy” and comical Shaxson’s arguments and rhetoric became. He is quick with exclamations of mock horror at companies facing a possible need to file US tax returns, inexplicably insists on using words like “titan” to describe hedge fund managers or junk-bond-fueled raiders and labels anything even remotely complex in the financial world “squirrelly business”.
Perhaps, I am just a jaded corporate drone, but a lot of his fist-shaking leaves me shrugging my shoulders. There are many destructive aspects to contemporary global finance (oh wow, who knew?), I am trying to learn more about them, not get an earful of moralistic sensationalizations about pension funds getting swindled and taxes being avoided. Even when his general points are reasonable and true the tabloid language makes them next to impossible to absorb. Here is an especially egregious example of what so irks me:
There’s a third reason for all the snaking chains of corporate complexity, which brings that other large stakeholder into view: the shambling, unloved, grouchy giant that invests in the roads, the courts, the education of workers, the sewage pipes under homes and office buildings, and the other essential things that underpin all of the titans’ profits. Government. After it has picked up the human flotsam from the lacerated pension pots and the layoffs, be they burned-out journalists or the victims of rogue doctors, the government is at least supposed to get a payback in the form of tax levied on corporate profits.
If this kind of delivery is you cup of tea, you doubtless will enjoy the book much more than I did.
Shaxson does a fair bit of introductory explaining throughout the book, which some readers may find very useful, but I personally did not. He is very clear and brief in these summaries, but goes a little too far, for example, breaking down what bank balances are, which seems redundant in a book not targeted at children. I wish he spent time unpacking more complex concepts mentioned in the book, such as different kinds of trusts or some “typical” ways to structure chains of offshore corporations, rather than focused on the simpler foundational terms.
Lastly, while I find the whole idea of “the finance curse” compelling and its existence demonstrable, I am concerned Shaxson stretches it too far, for example, concluding the book with a chapter on CAFOs. Are they terrible? Yes. Are contemporary farming and agricultural practices horrid in general? Yes. Are they a manifestation of “the finance curse”? I am not convinced. The book does successfully demonstrate the bloat and questionable practices in the financial sector, but comes up short trying to expose its poisonous influence on the rest of the economy. Again, I am already in agreement with the author’s thesis, and I was hoping he would elegantly put relevant arguments into words, alas, he doesn’t accomplish that in this book.
Thanks to NetGalley for a digital ARC of this book.
challenging
informative
reflective
slow-paced
Each chapter starts with a promising chapter name but you find a pattern of repeatedly boring the reader with trivial information instead of technicalities behind the cheating involved in financial world. Though there are few insights provided but they are shredded all over the book in a disconnected manner ,lost in the bloated trivial content which leaves the reader finding it hard to gain insights that are valuable.
Often the author mentions about mergers and acquisitions which results in a fat dividend to the top management but the explanation behind this "fat dividend" is skipped which makes the book unappealing, leaving the reader just to believe the author's words without understanding the process.
Often the author mentions about mergers and acquisitions which results in a fat dividend to the top management but the explanation behind this "fat dividend" is skipped which makes the book unappealing, leaving the reader just to believe the author's words without understanding the process.
challenging
reflective
medium-paced
informative
reflective
medium-paced
Very good book and overview of a couple of interconnected topics.
On a personal note, having lived in the UK (and not London), I always found the divide between the abstract and quasi-theoretical wealth (e.g. high GDP, very high costs of living, very concentrated pockets of wealth) and the actual 'on-the-ground' living experience astonishing.
The fact that most grads make 23k out of uni and the avg. Brit makes 28k p.a. while a good chunk of people make 100s of thousands of pounds per year has always been very strange to me. In Germany, you may make 40-60k out of uni and cap out at 100k. In the UK, it seems, you can easily go from 23k to multiples if not dozens of that.
In some sense, reality seems to be catching up with the UK though and I found this book very revealing as to a few of the reasons.
On a personal note, having lived in the UK (and not London), I always found the divide between the abstract and quasi-theoretical wealth (e.g. high GDP, very high costs of living, very concentrated pockets of wealth) and the actual 'on-the-ground' living experience astonishing.
The fact that most grads make 23k out of uni and the avg. Brit makes 28k p.a. while a good chunk of people make 100s of thousands of pounds per year has always been very strange to me. In Germany, you may make 40-60k out of uni and cap out at 100k. In the UK, it seems, you can easily go from 23k to multiples if not dozens of that.
In some sense, reality seems to be catching up with the UK though and I found this book very revealing as to a few of the reasons.
Overall, this was a sobering and somewhat depressing book. Note that I was already in agreement with Shaxson's thesis: the world economy has become far too dependent on the financial sector, which has found more and more ways to create "products" that actually harm short and long term economic well being. What Shaxson does is take that idea (which I had previously seen in a more focused form in books like [b:The Big Short|26889576|The Big Short Inside the Doomsday Machine|Michael Lewis|https://i.gr-assets.com/images/S/compressed.photo.goodreads.com/books/1446581171l/26889576._SY75_.jpg|6654434]) and shows the many different ways it has taken root (e.g. tax havens, shell corporations, businesses that inflate earnings by minimizing assets, private equity firms, and a staggering array of monopolies).
What I learned about the most from the book was the economic and political foundations of this "financialization"; Shaxson did a great job explaining the theories that led to deregulation and market solutions to government problems. His section on the origins of neoliberalism was very enlightening. However, I will admit to some confusion on the specific strategies he brings up. Shaxson has a great chapter on the dangerous precedent of perpetual trusts, but in another chapter, I got lost in his discussion of foreign capital and Eurodollars. I would have preferred a bit more emphasis on explanation throughout the book.
I also wish there was a greater emphasis on solutions. The conclusion has a great argument about what economic studies don't measure (and thus end up supporting neoliberal approaches) that could be a whole book in itself. And often, Shaxson spends so much time on the ways corporations and financial consultants evade taxes that it's hard to believe that any solution to hold them accountable could work (or even be politically feasible). But, overall, I'm glad I read the book, even if its message was hard to take.
What I learned about the most from the book was the economic and political foundations of this "financialization"; Shaxson did a great job explaining the theories that led to deregulation and market solutions to government problems. His section on the origins of neoliberalism was very enlightening. However, I will admit to some confusion on the specific strategies he brings up. Shaxson has a great chapter on the dangerous precedent of perpetual trusts, but in another chapter, I got lost in his discussion of foreign capital and Eurodollars. I would have preferred a bit more emphasis on explanation throughout the book.
I also wish there was a greater emphasis on solutions. The conclusion has a great argument about what economic studies don't measure (and thus end up supporting neoliberal approaches) that could be a whole book in itself. And often, Shaxson spends so much time on the ways corporations and financial consultants evade taxes that it's hard to believe that any solution to hold them accountable could work (or even be politically feasible). But, overall, I'm glad I read the book, even if its message was hard to take.
The Finance Curse is excellent throughout: it touches on a number of different topics related to financialization in our economy and makes the very basic but very astute case that higher flows of net wealth and financialization of a region or economy will tend to have negative repercussions. I’ve never come across a better source that describes as Shaxon does in plain English how pernicious and toxic many Trusts are and what this has to do with Sioux Falls – it is really fascinating stuff. Equally great are the chapters on the Irish economy and Big Ag. Overall powerful stuff.
challenging
informative
medium-paced
adventurous
dark
funny
informative
inspiring
fast-paced