Review of The Ordinary Business of Life by Backhouse

Roger Backhouse's book The Ordinary Business of Life is a comprehensive history of economic thought, from the ancient Greeks to the present day. It will be useful both to specialist economists and to people with a smattering of economic ideas who want to fill in the historical gaps. Backhouse's book provides much of the material for anyone brave enough to tackle the big issues.

Weapons Exports

The commonly held view that an ethical approach to arms sales is desirable but ‘unaffordable’ because jobs and exports are at stake is challenged by Samuel Brittan. He argues that it arises from a failure to understand the circular flow of income, the fallacy of a ‘lump of labour’ and a long discredited mercantilist view of trade. The author contends that on moral and economic grounds, arms sales should not be subsidised or officially promoted in any way, and governments should be much stricter in enforcing bans on sales to dubious regimes.