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Three major strengths of Matusow's book deserve special mention. First, he has made extensive use of archival materials that were inaccessible until recently. By using the presidential office files, Bob Haldeman's extensive notes, and the various books and recollections of Nixon's associates, he has assembled a large amount of material from a variety of sources to document various meetings and discussions in great detail. The result is a very ugly view of the politicization of economic policy that puts one in mind of the old saw about not wanting to know how sausages or laws are made....
A second strength of the book, of special interest to economists, is Matusow's careful documentation of the role played by well-known economists in the Nixon administration. Arthur Burns, Herbert Stein, Paul McCracken, Milton Friedman, and others all have starring roles in the drama. Except Friedman, none of them presents an appealing picture. Matusow extensively documents the ways in which Nixon's economic advisors were quick to sacrifice principles, particularly free-market principles, for political expediency.... Matusow makes extensive use of Friedman's Newsweek columns to illustrate the ways in which Nixon's policies did not correspond with the Friedman's free-market, monetarist line....
The book's third strength is Matusow's use of economics. In more than three hundred pages of analysis of Nixon's economics, I found very few places where Matusow made an obvious error of theory or history.... But in most cases he handles the economics nicely, especially in his discussions of inflation, where he keeps the behavior of the money supply always at the forefront, and the energy crisis, where he does a fine job of documenting the various government interventions that precipitated the crisis and the horrendous policy mistakes that exacerbated it.... Matusow deserves particular praise for his discussion of Bretton Woods and the gold window, in which he deals with some complicated issues in international monetary economics and does a good job of rendering them comprehensible....
Matusow has carefully and cogently documented Nixon's use of the instruments of power in pursuit of his own political goals and illuminated the disastrous results (double-digit inflation and the worst recession since the 1930s, not to mention a legacy of interventionism that has continued to the present) that Nixon's economics engendered. Matusow's book, though not couched in such terms, is an excellent case study in public-choice economics and is recommended to students of public choice and recent U.S. economic history.
Thus, this book is extremely useful. Almost month-by-month it describes the swinging pendulum of booms and busts that resulted from Nixon's economic mismanagement and the world economy's response to it. This is a very thorough work, meticulously documented. The author carefully documents endless cases of sacrifice of economic policies to blatantly short-term political goals.
It's also a good narrative, it weaves all the facts and explanation together, and it's organized very well. I found it very easy to read and understand it. It sheds much light on the economic causes of all those strange events of the 1970s. It's also a great companion to a more general history of USA during those years.
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I just wish that he had lived his life as he wrote this book.
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Original review above was July 1998; Below added Jan 2003:
Hurrah! It's back in print! Get your copy before it disappears again!
I should have mentioned that, in addition to the fun of watching Wills dismantle the superstructure of liberalism, the book provides great pleasure through its style. Wills writes non-fiction better than most poets write sonnets.