Book Review: "Radical Markets" by Eric A. Posner & E. Glen Weyl

I've recently read the book "Radical Markets" by Eric A. Posner & E. Glen Weyl. I should disclose that I came to know of this book upon attending a talk and Q&A session on campus by the latter author about this book, and that I was able to ask a question during that time (though as I point out later, I didn't find the answer to be so satisfactory). In any case, the topic intrigued me. This book is essentially a vision for a radical reformation of society, starting in the West but ultimately spreading through the world, such that concentrations of power are systematically broken and a level playing field is quickly approached. The two key novel contributions of this work are the notion of a common ownership self-assessed tax (COST), which aims to revolutionize notions of ownership by abolishing property rights extending to perpetuity and replacing them with auctions for goods & capital, and quadratic voting (QV), which aims to replace the principle of one-person-one-vote with voting credits such that individuals can vote on issues or candidates (for or against) in proportion to their perceived importance while being prevented from unduly swinging elections. There are also other issues discussed, such as immigration, institutional investment, and the value of digital data, all in the context of concentrations of power. It is worth pointing out that though there are many arguments that extend to Canada, the UK, other European countries, Japan, Singapore, Australia, and New Zealand, most of the arguments are made in the context of the US.

I will leave a detailed critique after the jump, and summarize my thoughts here. I found the ideas presented in the book rather intriguing and certainly novel. However, the main flaw of the book in my view is that the authors too often like to present their ideas at a very broad conceptual (macroscopic) level while simultaneously presenting examples justifying these concepts at a very granular (microscopic) level. The missing elements are the granular implementations of their broad concepts as well as the implications of the granular examples interacting on a larger scale; as a result, particularly for the introduction of the COST ideas, the claims must be taken essentially on faith, as the authors are quite glib about the importance of implementation details to the overall path of society if their ideas were to be followed. Given this, there are many reasons to remain skeptical about these ideas. This is also evident in the writing style too, in that my need to reread parts of certain chapters multiple times, while in part because these ideas are certainly not trivial, was mostly because of these sorts of logical leaps to conclusions that were not obvious, and many times, these conclusions remained non-obvious even after multiple reads through; the writing is otherwise engaging and fun to read, but I could tell that the authors were at many points getting swept up in their own ideas at the expense of clarity for readers. Overall, I recommend this book because the ideas are intriguing and I do want to see these ideas fleshed out better, but I would not recommend this book in the sense of wanting to preach these ideas myself. Follow the jump to see more detailed discussion about this book.