Concrete Economics by Stephen S. Cohen & J. Bradford DeLong Summary

Concrete Economics argues that proactive government policy—not ideology—has driven America’s economic success, from Alexander Hamilton’s industrial plans to Eisenhower’s infrastructure investments. Authors Stephen S. Cohen and J. Bradford DeLong critique post-1970s deregulation, linking today’s issues like income inequality and financial instability to reduced state direction. The book advocates reviving pragmatic government-entrepreneur partnerships to address modern challenges.

Policymakers, economists, and readers interested in U.S. economic history will find actionable insights. It’s ideal for those seeking alternatives to partisan debates, as it merges historical analysis with practical solutions for issues like trade imbalances and innovation stagnation. Critics of neoliberalism or fans of Paul Krugman’s endorsements may also appreciate its evidence-based approach.

Yes—it’s praised as a “brilliantly written” antidote to ideological gridlock, offering a fresh perspective on economic policy. Paul Krugman called it “excellent,” noting its relevance to debates on infrastructure, industrial strategy, and globalization. The mix of 19th-century case studies and modern critiques makes it accessible and timely.

The Hamilton Approach emphasizes government as a strategic architect, guiding economic growth through targeted investments (e.g., infrastructure, education) and policies that incentivize private-sector innovation. Key elements include:

• Strategic tariffs to protect emerging industries
• Public-private partnerships for large-scale projects
• Long-term planning over short-term market fixes

Cohen and DeLong blame post-1970s deregulation for deindustrialization, rising inequality, and financial crises. They argue that abandoning Hamiltonian principles—like active industrial policy—allowed competitors like China to dominate manufacturing, while the U.S. overprioritized finance over production.

Solutions include reinstating government-led industrial strategies, boosting R&D funding, and reforming trade policies to prioritize domestic innovation over outsourcing. The authors stress rebuilding infrastructure and creating public-private “innovation hubs” akin to Silicon Valley’s tech ecosystem.

The book critiques 1980s–90s globalization for enabling offshoring without safeguards, which eroded U.S. manufacturing jobs and weakened supply chains. It contrasts America’s approach with Asia’s state-guided models, where governments protected key industries while integrating into global markets.

Stephen S. Cohen is a UC Berkeley economist and policy advisor to governments worldwide. Co-author J. Bradford DeLong is an economic historian. Their combined expertise grounds the book in both theoretical and practical insights, particularly on industrial policy and globalization.

The authors acknowledge risks of bureaucracy but argue that historical successes—like the Interstate Highway System and semiconductor innovation—show effective state action requires clear goals, adaptability, and collaboration with experts. They reject “big vs. small government” debates, focusing instead on strategic, outcomes-driven policy.

• “Government plotted the route of the economy in deliberate, concrete ways”: Highlights the book’s thesis that economic growth requires intentional design, not laissez-faire.
• “Excessive financialization is a dead end”: Warns against prioritizing Wall Street over Main Street.

It challenges libertarian views by documenting how U.S. prosperity relied on state intervention, from railroads to the internet. Unlike Ayn Rand or Milton Friedman, Cohen/DeLong argue markets thrive only within government-designed frameworks.

With debates over AI regulation, green energy transitions, and supply chain resilience, the book’s emphasis on adaptive industrial policy offers a blueprint for tackling modern challenges. Its historical lessons counter “hands-off” approaches to crises like climate change or tech monopolies.