The Tyranny of Dead Ideas

Letting Go Of The Old Ways Of Thinking To Unleash A New Prosperity

by Matt Miller, Times Books – Henry Holt and Company, 2009

Book Review by Mike Powers and Herb Rubenstein

Introduction

In his book, The Tyranny of Dead Ideas, Matt Miller proposes three facts that are poised to shape economic life for a generation:

1. Global competition and rapid technological change leading to a severe test of America’s economy,

2. The lack of preparation by political and business leaders for what lies ahead,

3. Inaction due to a set of ideas regarding how a modern economy should function, that pervade the entire economic and political culture.

According to Miller, these “Dead Ideas” which include:

• Our children will earn more than we do,

• Free trade is "good" no matter how many people it hurts,

• Employers should play a central role in the provision of health coverage,

• Taxes hurt the economy,

• "Local control" of schools is essential,

• People tend to end up, in economic terms, where they deserve,

These ideas pose one of the greatest threats to our economic future that we have indeed ever faced. The first half of the book examines each of these ideas, offering insights from history, psychology and economics to explain why they have become imbedded in our modern psyche, and what are the consequences thereof.

Destined Ideas

In the second half of the book, Miller introduces a set of “Destined Ideas”, ideas that today may seem unorthodox and controversial, but, according to Miller, are in fact certain to reshape business and political life in the near future:

• Only government can save business,

• Only business can save liberalism,

• Only higher taxes can save the economy (and the planet),

• Only the (lower) upper class can save us from inequality

• Only better living can save sagging paychecks,

• Only a dose of “nationalization” can save local schools,

• Only lessons from abroad can save American ideals.

Miller stipulates the purpose of the book is not to persuade the reader that these “Destined Ideas” are the course that should be followed. Rather, they are in Miller’s view what will come to pass and will in fact come to prevail as dead ideas give way under the pressure of impending economic and political forces.

Transition

This assumption however begs the question: who will be at the forefront of the transition? If this transition of dead ideas to destined ideas is indeed imminent, who will lead the charge for developing new ideas; who will start the conversation? According to Miller, the most logical candidates to form the vanguard of this new creed will be America’s business leaders.

The coming transition will represent the triumph of pragmatism over ideology. The business sector by instinct and temperament prefers pragmatic results to ideology. The global reach of American enterprise allows executives to be among the first to see threats from abroad. Their cosmopolitan outlook allows them to quickly grasp what can be learned from developments elsewhere. Then there is business’ ever-present need for an educated workforce and a burgeoning middle class of consumers.

Conclusion

Breaking the tyranny of dead ideas will not be easy. Miller suggests several reasons why business is not currently taking a leadership role in shaping America’s direction, such as the simple lack of time and focus, as well as the lack of tangible incentives. Still, change is coming. The sooner we can break free of our prevailing dead ideas, the less disruptive the years ahead will be as well as the less damaging to ourselves and the rest of the world.