Tyler Cowen recommends Ferraris

I was particularly pleased to see that Tyler Cowen, one of America’s best-known economists, has recommended Ferraris for All on his Marginal Revolution blog. His recent e-book, The Great Stagnation, has stirred up a lot of debate among economists and sounds really interesting – unfortunately I do not have a kindle so I cannot get access to it. In a debate on the book the Economist sums up Cowen’s argument as follows:

“median incomes [in America] have stagnated since the 1970s because rich economies have used up the low-hanging economic fruit. They’ve captured the easy gains from educating their populations, and they’ve exhausted the gains from exploiting the great wave of innovation that took place from just prior to the Industrial Revolution to the middle of last century. GDP has continued to grow, but this growth has been overstated by the increasing contribution of hard to value sectors like government, health care, education, and finance.”