John Drobak’s “Rethinking Market Regulation” is a timely and much needed rebuttal to the economic analysis that has justified decades of corporate outsourcing of millions of jobs and the legitimization of massive executive compensation in our country during hard times for many employees. Drobak, contrary to Wall Street Myth, fervently believes greed is not good and urges several thoughtful proposals for change notably including adding labor representation to corporate boards and creating a new Federal review board for mergers to assess the expected displacement of labor.
A subversive approach to economic theory, “Rethinking Market Regulation” explores the devastating impact of globalization and a lack of governmental regulation on the U.S. workforce. It challenges two key economic principles: that markets are competitive, making government intervention unnecessary, and the claim that corporations exist for the benefit of their shareholders, but not for other stakeholders. Arguing that both principles are based in myth, this book offers an insightful perspective into the plight of workers faced with widespread job losses through the merging and outsourcing of resources.
“This is a stellar work that deserves the widest possible readership.” – Joel Seligman, President Emeritus and University Professor, University of Rochester, Dean Emeritus and Professor, Washington University School of Law.
“‘Rethinking Market Regulation’ tells a challenging story about labor markets. A legal scholar and a long term intellectual partner to Douglass North, the author undercuts the ongoing economic narrative about the benefits of the so-called workforce flexibility and the presumably ‘intractable’ rigidities introduced by labor regulations. His interpretation provides substantial food for thought about the ongoing divisions of the American society and, more generally, about rising populism everywhere.” – Claude Ménard, Professor of Economics, Centre d’Economie de la Sorbonne.
“In this extremely valuable and insightful book, John Drobak dismantles the many economic myths that have prevented America from moving toward a more socially just society. ‘Rethinking Market Regulation’ provides a critical refutation of past orthodox thinking and policies, and provides a much needed blueprint for where we need to be heading in the future.” – Mark R. Rank, Herbert S. Hadley Professor of Social Welfare, Washington University in St. Louis
“In this thought- provoking book, John Drobak invites us to take a new look at markets and regulation, by challenging many of the standard assumptions made by economists. Perhaps Drobak’s biggest idea rests on citizen/voter beliefs about the market. If a large portion of Americans become disillusioned with markets because they believe markets work only for the rich, then it risks a political backlash. This is a recipe for populism and anti-market policies.” – Barry R. Weingast, Ward C. Krebs Family Professor of Political Science, Stanford University.