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Articles

Economics and Rationality

Brendan Larvor reviews The State We’re In by Will Hutton and explains why consumers aren’t crazy after all.

Will Hutton’s The State We’re In offers a many-layered argument. At one level, it is an essay on the recent political and economic history of Britain. It is also a call for a certain sort of political programme. I shall not concern myself with Hutton’s case at either of these levels. I shall focus exclusively on Hutton’s argument against classical economic theory, where that theory intersects with more general questions about the nature and scope of human rationality.