The Age of Turbulence
Encyclopedia
The Age of Turbulence: Adventures in a New World is a 2007 memoir
Memoir
A memoir , is a literary genre, forming a subclass of autobiography – although the terms 'memoir' and 'autobiography' are almost interchangeable. Memoir is autobiographical writing, but not all autobiographical writing follows the criteria for memoir set out below...

 written by former Chairman of the Federal Reserve
Chairman of the Federal Reserve
The Chairman of the Board of Governors of the Federal Reserve System is the head of the central banking system of the United States. Known colloquially as "Chairman of the Fed," or in market circles "Fed Chairman" or "Fed Chief"...

 Alan Greenspan
Alan Greenspan
Alan Greenspan is an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006. He currently works as a private advisor and provides consulting for firms through his company, Greenspan Associates LLC...

. Published on September 17, 2007, the book debuted at the top of the New York Times Best Seller list for hardcover nonfiction.

Overview

The first half of The Age of Turbulence is an autobiographical chronology of Greenspan's life. This portion of the text permits readers a view of the people and circumstances that helped shape and guide Greenspan. From hours of clarinet and saxophone practice as a child, to living room philosophy with Ayn Rand
Ayn Rand
Ayn Rand was a Russian-American novelist, philosopher, playwright, and screenwriter. She is known for her two best-selling novels The Fountainhead and Atlas Shrugged and for developing a philosophical system she called Objectivism....

, his major influences are all detailed.

The second half of the book retells several major economic events (primarily within the U.S.) that have occurred over the past half century. His economic endeavors and personal observations while serving under various U.S. Presidents are detailed, and often inter-mingled with these events. The latter half of the book also includes an analysis and brief history of major global economic constructs (of yesterday and today), along with a somewhat subjective measure of their success (or lack thereof). The economic systems discussed include Marxist Communism
Communism
Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...

, Populism
Populism
Populism can be defined as an ideology, political philosophy, or type of discourse. Generally, a common theme compares "the people" against "the elite", and urges social and political system changes. It can also be defined as a rhetorical style employed by members of various political or social...

, and various mutations of Market Capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

.

On free market capitalism

In Greenspan's view, free market capitalism is the economic approach that "trumps" other forms attempted thus far in human history. His support of Adam Smith
Adam Smith
Adam Smith was a Scottish social philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations...

's "invisible hand
Invisible hand
In economics, invisible hand or invisible hand of the market is the term economists use to describe the self-regulating nature of the marketplace. This is a metaphor first coined by the economist Adam Smith...

", i.e., people's motivational self-interest, is foundational to his view of creating a successful, growing economy. He discusses the rapid historical growth of the U.S. economy under market capitalism as well as its benefit to foreign adopters, albeit with persistent dis-functions. His support for market capitalism is not without criticism. This includes the anxiety often expressed within a society as "creative destruction
Creative destruction
Creative destruction is a term originally derived from Marxist economic theory which refers to the linked processes of the accumulation and annihilation of wealth under capitalism. These processes were first described in The Communist Manifesto and were expanded in Marx's Grundrisse and "Volume...

" plays out. Greenspan also decries the lack of quality public secondary education for the "masses", particularly in mathematics and the sciences, and how this problem contributes to the divergence of rich and poor within the U.S.

On presidential economic influence

Greenspan's criticisms of President George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....

 include his refusal to veto new Federal legislation, thus increasing spending with unprecedented ease. In Greenspan's opinion, Bush's approach to dealing with the congress has been one of "conflict avoidance", and fulfilling political promises/agendas with little room for compromise or reason. Greenspan writes, "[Republicans in Congress] swapped principle for power; they ended up with neither ... they "deserved to lose" the 2006 election. Of all the presidents with whom he worked, Greenspan praises Gerald Ford
Gerald Ford
Gerald Rudolph "Jerry" Ford, Jr. was the 38th President of the United States, serving from 1974 to 1977, and the 40th Vice President of the United States serving from 1973 to 1974...

 above all others, but also has high praise for Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...

. His opinion of Clinton's governance was one which maintained "a consistent, disciplined focus on long-term economic growth."

Reviews

The Economist
The Economist
The Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...

considered the book to be "first-rate", noting that "it engages on different levels: it is intelligent in a way that few popular books on economics manage or even try to be; and, wonder of wonders, it is a good read." The New York Times said, "For a memoir from such a high-profile figure, it is surprisingly frank. Large parts of the book are downright entertaining. Its biggest failing — the reason it isn’t a great memoir — is Mr. Greenspan’s reluctance to be as forthright and penetrating about himself as he is about others."

External links

  • Reigning Bull Review of The Age of Turbulence in The Monthly
    The Monthly
    The Monthly is an Australian national magazine of politics, society and the arts, which is published eleven times per year on a monthly basis except the December/January issue. Founded in 2005, it is published by Melbourne property developer Morry Schwartz...

    , December 2007
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