Publishers Weekly
07/24/2023
The belief that “success goes to those who work hard” and “failure goes to those who do not” obfuscates the difficulty of rising up the economic ladder in the U.S., according to this incisive study. Economist Fuhrer (editor of Understanding Inflation and the Implications for Monetary Policy) carefully deconstructs this myth and discusses discriminatory policies designed to disadvantage people of color, such as the exclusion of domestic and agricultural workers, who were disproportionately likely to be people of color, from New Deal minimum wage and overtime pay requirements. Profiles of people struggling to get by add nuance to statistics on the lack of upward mobility in the U.S., as when Fuhrer notes a study that found families in the lowest-earning quintile had only a 3% chance of making it to the highest over a 10 year span and tells the story of a mother of three who lives in a northern suburb of Boston and struggles to pay bills while undergoing cancer treatment. To create a more equitable economy, the author recommends “focusing on early childhood education, more effective use of our community college system, restructuring the workplace, providing much more affordable housing,... and instituting baby bonds and reparations.” The troubling interviews and statistics underscore the difficulty of “making it” in America, and the proposed solutions are pragmatic and well considered. Readers will be outraged by this scathing indictment of America’s failure to live up to its meritocratic ideals. (Sept.)
From the Publisher
Included in Publishers Weekly's Fall 2023 Adult Announcements Business and Economics Top 10 List
"A thoughtful call for equality of economic opportunity, both provocative and, in the end, eminently practical."
—Kirkus Reviews
“Economist Fuhrer carefully deconstructs this myth and discusses discriminatory policies designed to disadvantage people of color, such as the exclusion of domestic and agricultural workers, who were disproportionately likely to be people of color, from New Deal minimum wage and overtime pay requirements…The troubling interviews and statistics underscore the difficulty of “making it” in America, and the proposed solutions are pragmatic and well considered. Readers will be outraged by this scathing indictment of America’s failure to live up to its meritocratic ideals.”
—Publishers Weekly
“I have a book to recommend. It’s called “The Myth That Made Us.” It’s by Jeff Fuhrer, an economist and former director of research at the Federal Reserve of Boston, and it’s really good. In it, he examines some of our sacred truths: That success goes to those who work hard; that we live in a land of opportunity, and in a meritocracy where individual effort is appropriately rewarded; that we should keep government out of the way and let markets work their magic; that racism never existed, or no longer affects outcomes for people of color. Fuhrer, now a fellow at the Eastern Bank Foundation, used to buy into parts of that myth himself. But then, some 15 years ago, the Fed in Boston began looking closely at what was going on in former industrial cities in Massachusetts, and he got the chance to have long conversations with many people who were doing everything they were supposed to but were still struggling.”
—The Boston Globe, columnist Yvonne Abraham
"Fuhrer’s 30+ years of experience at the Federal Reserve also affords unique insights and evidence. First, we get an insider’s view into the myth related to certain roles of the government. The discussion of the Great Recession is one such compelling story; not only does this illustrate that government intervention is sometimes necessary, but it also points out who received the most (and least) support. Second, Fuhrer notes how his involvement with a community development initiative at the Fed led to his recognition of “gaps in mainstream economics.” The self-described change of heart may put readers in a more open mindset at the start, which is how this book should be approached. Finally, unique, especially for economists, is the inclusion of portions of interviews with economically disadvantaged individuals, which humanizes not only the detrimental consequences of the myth but also the potential solutions...This book is a nice addition to the discourse on inequality in the United States. One does not need any particular training to understand it, but interest and an open mind will help one to appreciate it fully."
— Journal of Economic Literature
“I welcome Fuhrer adding his voice to those challenging the massive rise in inequality that we have seen in the last half century. If we are ever to make serious progress we need to have a lot people follow his path.”
—Dean Baker
Kirkus Reviews
2023-07-13
An exposé of the many barriers marginalized people face in gaining access to the so-called American dream.
“We claim that we live in a land of opportunity, when in fact we have systematically denied opportunity for centuries,” writes Fuhrer, a foundation fellow at the Eastern Bank Foundation. The myth of the title is less a single yarn than the tangled mass of threads that comprise systemic racism in economic life—though if it were to be reduced to a single falsehood, it’s that each of us has the same opportunities to work and grow rich. It should be no surprise that the playing field is anything but level and that “the array of policies that were designed to build wealth for white families” is largely unavailable to anyone else. For individuals, the inequalities begin in childhood, with a huge differential in the accessibility of pediatric health care and educational and social support systems for early childhood development to minority and white populations. One of many hurdles, writes Fuhrer, is that the years of early childhood care tend to be the years of lowest earning, which means that the ability to borrow funds is constricted and the need for assistance greatest. A free-marketer fundamentalist may be shocked by Fuhrer’s program of remedies. Apart from increasing access to day care programs, for example, he recommends installing “school-to-work educational programs” that would serve as pipelines by which individuals with the necessary skills are steered from community college or trade school to jobs, with the costs borne by taxpayers and industry alike. He also recommends raising the minimum wage and, to make that possible, giving large tax breaks to the small businesses that might otherwise be harmed by the cost burden. Following Fuhrer’s tally sheet will surely make a libertarian blanch, but it’s an interesting back-of-the-envelope exercise in balancing costs and return on investment.
A thoughtful call for equality of economic opportunity, both provocative and, in the end, eminently practical.
