For much of the 20th century, economists lost interest in history, says Darrin McMahon. “Beguiled by the notion that theirs, “brings time back into the equation”, and traces the development of economic thought, particularly as it relates to income distribution, from the French Revolution through to the Cold War. Inequality was a central concern of early economists, and it came back into fashion after the financial crisis and following the publication of Thomas Piketty’s book on the subject. Milanovic teases out insights from the works of seminal figures to put modern thinking on the subject in a broader context. The result is a compelling narrative that restores the insights of thinkers that have been distorted by later commentary. Adam Smith, for example, is shown to have had a “pronounced anti-capitalist and left-wing streak”, a “champion of ordinary people” and the common good, and sceptical of the political influence of capitalists. Marx comes across as a less dogmatic thinker than is often allowed, with lasting and valuable insights into the nature of capitalism. Economists forget their history “at their peril”.
