The Nature of Economies

Jane Jacobs' The Nature of Economies uses the same platonic dialogue format so successful, for me, in her previous Systems of Survival, a format different from her other books, including her most famous The Death and Life of Great American Cities.

The title plays on the book's basic idea that economic systems can be understood by using the same analysis as ecological systems are understood. This means complex networks of diverse elements that work together, change together, and grow or not in qualitative and quantitative ways. Another given is that we humans, and the objects and systems we build, are part of nature, not different from it.

Since I already had a grasp of ecology, the book gave me a clearer, and more enjoyable, view of show more economics than I'd ever gotten from learning about it as a subject in itself. It presents econ as a process, rather than a collection of things.

She does coin some terms I'm sure are not part of economist's lingo. I'm still not sure I know what she means exactly by import-stretching, for example. But aside from such quibbles, the book is very useful in viewing how the economies of cities and countries, and the global economy may work. show less

A fairly interesting approach to writing about a certain way to view economic structures, Jacobs invents a cast of characters (named, I have to assume, after dead 18th century English folks...plus a Kate. Or maybe these are common names in contemporary Toronto - the late Jacob's adopted hometown? I dunno.) in a series of dialogues, or rather, politely interrupted monologues offered up by some cat named Hiram to the perpetuity potentially offered by Armbruster's tape recorder (yeah, really). Ostensibly it's about the guy's theory that, while not directly modeled on natural processes, general economic structures are governed by the same systems that govern nature, in fact, that necessarily govern everything. I think that was the general show more thrust.

To make these curious discussions support this concept, or to at least prove interesting to the reader, Jacobs seemingly draws examples from a grab bag filled with everything from some unpublished 1950-something lecture to numerous recent articles from the The Globe and Mail. So all this comes off as unbridled randomness ever-so-slightly reined in by these peculiar seminar-like scenarios. Nonetheless, I found it engaging – if only because my exposure to non-architecture/urban stuff is woefully inadequate. I would recommend, at the conclusion of each chapter, looking to the non-footnoted notes in the back as she dedicates a brief description and source(s) for each specific item thrown out during these “conversations.” show less

Jacobs, Jane. The Nature of Economies. The Modern Library, New York, 2000. This book draws parallels between ecosystems and economies. These are two things that I have always thought very similar; on a first reading, there is little in Jacobs's book that adds fundamental clarity to my thoughts --- she just raises the same intuitive notions that I've long had. The one section that I found new and exciting, however, was the section on economic expansion. Measuring the fundamental health of an economy in terms of import-stretching makes perfect intuitive sense and it adds much insight to the contemplation of macroeconomics. Reading this short book is worth it for that idea alone. I intend to chase down the references in the notes to see if show more I can find more interesting general principles for complex systems that can be applied to ecosystems, economies, and perhaps even the development of computer software (the chic ``complexity theory'' everybody's talking about these days). show less

Jacobs tries to turn what should have been a work of pure theory/commentary, into a novel with narrative, to make it readable. It is a bit awkward, but if you can get beyond that it is another good book from this great thinker.

A good continuation of her previous work, Systems of Survival. The Nature of Economies is not quite as good, but it's still very worthwhile. The idea of import replacement has stuck with me ever since I read this.

Little too eclectic for may taste. Platonic dialogue of friends is superfluous - it doesn't add clarity nor interest.