If you own stock, invest in companies, or are starting a new business, read this book!

A review of The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public, by Lynn Stout

@@@@@ (5 out of 5)

If you so much as skim the business pages in a newspaper, there’s little doubt you’ve heard it said or seen it written that corporate officers and directors are required by law to maximize shareholder value and that they’re subject to lawsuits if their decisions favor any other stakeholder such as employees, customers, or suppliers over profit. The well-entrenched view that shareholders are paramount is widely regarded as the cornerstone of contemporary business law — and it’s flatly untrue.

In The Shareholder Value Myth, business law professor Lynn Stout proves this point, citing chapter and verse in court decisions going back more than a century. “So long as a board can claim its members honestly believe that what they’re doing is best for ‘the corporation in the long run,’ courts will not interfere with a disinterested board’s decisions — even decisions that reduce share price today.” Having laid the legal groundwork, Stout then proceeds to explain how this mistaken view of shareholder primacy is bad for business.

“Put bluntly,” she writes, “conventional shareholder value thinking is a mistake for most firms — and a big mistake at that. Shareholder value thinking causes corporate managers to focus myopically on short-term earnings reports at the expense of  long-term performance; discourages investment and innovation; harms employees, customers, and communities; and causes companies to indulge in reckless, sociopathic, and socially irresponsible behaviors.” Among the examples Stout cites is the Gulf oil spill, caused by excessive cost-cutting on the part of BP. “In trying to save $1 million a day by skimping on safety procedures at the Macondo well, BP cost its shareholders alone a hundred thousand times more, nearly $100 billion.” Q.E.D.

Stout deftly demonstrates that this irrational focus on shareholder value has been harmful in other ways as well. For example, “[b]etween 1997 and 2008, the number of companies listed on U.S. exchanges declined from 8,823 to only 5,401.” Of several factors that help explain this trend, shareholder primacy clearly stands out. Smart people know that there’s more to success in business than a rising stock price.

The origin of this misguided notion lies in the thinking of the so-called Chicago School of free-market economists best known through the work of the late Nobel Prize-winner Milton Friedman. Friedman had written a book in the 1960s that highlighted the idea, but it was his essay in 1970 in the New York Times Magazine that gained wide attention. There, he “argued that because shareholders ‘own’ the corporation, the only ‘social responsibility of business is to increase its profits.'” Stout argues that “shareholders do not, and cannot, own corporations . . . Corporations are independent legal entities that own themselves, just as human beings own themselves.” Shareholders merely own shares of stock that constitute a contract with the corporation to receive certain financial benefits.

They’re not in charge of the show, either. Some lawyers and economists writing after Friedman contended that  shareholders appoint the directors as their agents. This too, Stout contends, is mistaken. She devotes two chapters to prove that this description of shareholders as principals “mischaracterizes the actual legal and economic relationships among shareholders, directors, and executives in public companies . . . Moreover,” Stout writes, this assumes “that shareholders’ interests [are] purely financial,” when in fact shareholders may have any one of a great many different reasons for buying and holding shares in a company.

A fair portion of The Shareholder Value Myth is focused on analyzing the impact of several popular measures promoted by shareholder advocates, the SEC, and Congress over the past two decades: “de-staggering” boards, so that all directors may be removed at once; giving shareholders the right to circulate proxies to all other shareholders on issues of interest; and equity-based compensation. Ask yourself: How often have shareholders removed the entire membership of a corporate board with a single vote? And how often have shareholders of a public company — other than corporate raiders or hedge funds — successfully obtained proxies to overturn a corporate board policy? You can guess the answer to those questions. But the very worst impact of these efforts to strengthen the shareholders’ hand has come from the popularity of equity-based compensation. “In 1991, just before Congress amended the tax code to encourage stock performance-based pay, the average CEO of a large public company received compensation approximately 140 times that of the average employee. By 2003, the ratio was approximately 500 times.” That policy isn’t the only factor to account for this dramatic rise in the ratio, but it’s certainly a major one. And it only seems to work on the upside. How many times have you read about board decisions to lower a CEO’s pay in proportion to the decline in its stock price the past year? You probably know the answer to that one, too. 

The Shareholder Value Myth is an important contribution to a growing body of thought that seeks to re-conceive the role of the corporation in a more expansive manner commensurate with its growing importance in contemporary society.

Understand how Netflix, Wall Street, and economists use (and misuse) statistics

 

A review of Naked Statistics: Stripping the Dread from the Data, by Charles Whelan

@@@@ (4 out of 5)

In the unfolding Age of Big Data, no one who hopes to understand the way the world works can afford to be ignorant of statistical methods. Not a day goes by that statistical analysis isn’t behind some front-page story — in politics, sports, business, or even entertainment. The statistical concepts of probability, sampling,  and statistical validity, once considered obscure and of interest only to geeks wearing pocket protectors, are now indispensable tools for the active citizen to grasp. Writing in a breezy and intimate style, with humor and lots asides to the reader, Charles Whelan attempts to unpack these concepts and explain them in English with a minimal use of advanced math, and he succeeds . . . up to a point.

Naked Statistics was published just four months after Nate Silver’s best-selling book, The Signal and the Noise, which covers much the same ground in a very different way. (I reviewed that book here.) Whelan focuses on the nitty-gritty of statistical methodology, delving into such topics as how samples are chosen, what’s meant by terms such as correlation, standard deviation, and regression analysis, and how to determine whether the results of a test are statistically valid. However, he doesn’t lose sight of practical questions, unpacking such seemingly puzzling statements as “the average income in America is not equal to the income of the average American” and spotlighting the difference between precision and accuracy. Silver instead explains how statistical methods are applied in a wide range of activities, from baseball and basketball to Wall Street. Whelan includes lots of formulas laden with Greek letters, though, conveniently, they’re confined for the most part to Appendixes that follow many of the book’s chapters and can be skipped by a non-technical reader. (I ignored them.) Silver’s book is refreshingly devoid of Greek letters.

As Whelan makes clear, perhaps unintentionally, statistics is a forbiddingly technical field. Truth to tell, if you really want to understand statistical methodology and how it can be applied, you need a fair grounding in mathematics and a tolerance for terminology that doesn’t appear in everyday English. In fact, you probably need to take the same sort of graduate school courses Whelan took years ago. This is heady stuff!

All in all, for a run-of-the-mill mathematical illiterate such as me, Nate Silver did a much better job getting across the significance of statistics and how its methods are applied to strip away the complexities of today’s often baffling, data-driven world.

The 12 best nonfiction books I’ve read in 2012

This was going to be a list of 10 books, but I couldn’t resist adding another two. It’s been a great year for nonfiction.

1. Mary’s Mosaic: The CIA Conspiracy to Murder John F. Kennedy, Mary Pinchot Meyer, and Their Vision for World Peace, by Peter Janney

Review to be posted Dec. 10. Look for it!

2. The New Jim Crow: Mass Incarceration in the Age of Colorblindness, by Michelle Alexander

A penetrating analysis of the racist underpinnings of the U.S. justice system, the result of the ill-conceived “war on drugs” and deep-seated racial fears that has led to the mass incarceration of people of color.

3. The Swerve: How the World Became Modern, by Stephen Greenblatt

This exceptionally brilliant book is the story of a long-lost poem and of the man who rediscovered it more than a thousand years later, helping to trigger an upheaval in medieval European thinking that came to be known as the Renaissance. The Swerve details the staggering impact of the poem, a 7,400-line masterpiece that laid out in minute detail the revolutionary worldview of a Greek philosopher whose greatest influence was felt two millennia after his death.

4. 1491: New Revelations of the Americas Before Columbus, by Charles C. Mann

Forget just about everything you learned in school about the peoples who lived in the Western Hemisphere before 1492 — and about the land, too. It turns out that yesterday’s historians, anthropologists, paleontologists, and ecologists got it pretty much all wrong. In this revised edition of a 2006 bestseller, we learn that the Americas before Columbus were far more heavily populated, the leading civilizations far more sophisticated, and their origins far further back in time than earlier generations of scholars had suspected.

5. Behind the Beautiful Forevers: Life, Death, and Hope in a Mumbai Undercity, by Katherine Boo

An enthralling and deeply disturbing book that reads like a novel, this is a three-year study of life in a small Indian slum nestled between the new Mumbai International Airport and the five-star hotels clustered nearby. A quest to understand poverty and the ways people find to transcend it.

6. The Revenge of Geography: What the Map Tells Us About Coming Conflicts and the Battle Against Fate, by Robert D. Kaplan

Through a geopolitical lens, Planet Earth, and the machinations and foibles of earthly leaders, look a lot different than they do in most history books. Stand a few feet away from a globe and squint: if the globe is properly positioned, what you’ll see is one huge, three-tentacled landmass (Asia-Africa-Europe); a second, much smaller one that consists of two parts joined by a narrow connector (North and South America); and several even smaller bits of land scattered about on the periphery (Australia, Greenland, Japan, Indonesia). That’s the world as Robert D. Kaplan sees it in this illuminating study of world history and current events as influenced by geography.

7. The Self-Made Myth, and the Truth About How Government Helps Individuals and Businesses Succeed, by Brian Miller and Mike Lapham

A thoughtful and impeccably reasoned new book that goes straight to the heart of the conservative argument favoring limited government and coddling the rich. Rather than quibble about this program or that issue, or fasten on the transparently shoddy logic of a Republican budget that promises to reduce the federal deficit when in fact it will surely increase it, Miller and Lapham’s argument strikes at the fundamental values and assumptions underlying today’s conservatism: the myth rooted in the writing of novelist Ayn Rand of the superhuman “job creator.”

8. Freedom’s Forge: How American Business Produced Victory in World War II, by Arthur Herman

Focuses on the role that America’s business community, and especially Big Business, played in the monumental effort that resulted in the unconditional surrender of Germany and Japan just months apart in 1945.  Two extraordinary men — William S. Knudsen and Henry Kaiser — are the stars of this story, business impresarios who marshaled the stupendous numbers of men and women and the unprecedented mountains of raw materials that supplied the U.S. and its Allies with the weapons of war.

9. Infinite Vision: How Aravind Became the World’s Greatest Business Case for Compassion, by Pavithra Mehta and Suchitra Shenoy

The truly truly astonishing story — one with profound implications for development throughout the Global South — of how a retired Indian eye surgeon founded a nonprofit eye hospital in a southern Indian city in 1976 that is today “the largest and most productive blindness-prevention organization on the planet.” Equally important, Aravind also serves as a global resource center for opthalmology, training one out of every seven Indian eye doctors, consulting on management and technical issues with eye hospitals in 69 countries, and operating a state-of-the-art research center.

10. Double Cross: The True Story of the D-Day Spies, by Ben McIntyre

The mind-boggling story of six European double agents who were “turned” or recruited by the British and played roles as large as those of any American general in the success of the Normandy invasion that opened up the Western Front and the path to Allied victory.

11. The Signal and the Noise: Why So Many Predictions Fail — But Some Don’t, by Nate Silver

As ambitious as it is digestible, and written in an easy, conversational style, The Signal and the Noise explores the ins and outs of predicting outcomes not just in politics, poker, and sports as well as the stock market, the economy, the 2008 financial meltdown, weather forecasting, earthquakes, epidemic disease, chess, climate change, and terrorism.

12. Spillover: Animal Infections and the Next Human Pandemic, by David Quammen

A fascinating account grounded in scientific research of a class of diseases known as “zoonoses,” that is, animal in origin, that encompasses AIDS, Ebola, Marburg, SARS, H5N1 — and many others of of the world’s scariest diseases. The book recaptures the drama in the lives of the research scientists, physicians, veterinarians, and others who are on the front lines of humanity’s defense against disease.

The 10 best mysteries and thrillers I’ve read in 2012

1. Gone Girl, by Gillian Flynn

This is the story of Amy Elliott Dunne and Nick Dunne, the perfect couple in the ideal marriage. It’s a storybook tale . . . or maybe it isn’t. One day Amy goes missing, and it slowly begins to dawn on you that one (or both) of the two is a sociopath. Gone Girl is plotted almost as diabolically as Catch 22. It’s near-perfect, with jaw-dropping shocks and shivers all the way to the very last page.

2. Agent 6, by Tom Rob Smith

The third book in a trilogy, Agent 6 concludes the story of Leo Demidov, a World War II hero and later an agent in Stalin’s secret police. The book opens in 1950 with Leo in thrall to the Sovet State, a senior officer in the MGB (predecessor to the KGB and to today’s FSB) charged with training newly recruited agents. Jesse Austin, a world-famous African-American singer closely resembling Paul Robeson, is visiting Moscow, where he will perform and publicly extol the accomplishments of the Soviet regime as he sees them. Leo is detailed to help ensure that Austin is shielded from the realities of life in Moscow.

3. The Limpopo Academy of Private Detection, by Alexander McCall Smith

The Limpopo Academy of Private Detection is the 13th and latest in Smith’s best-known series of novels about the #1 Ladies’ Detective Agency in Gaborone, the capital of the small, land-locked nation of Botswana, bordering South Africa. To my mind, it’s one of the best. As always, the story revolves around the lives of Mma (“Ms.”) Precious Ramotswe, founder and proprietor of the agency, and her consistently exasperating assistant, Mma Grace Makutsi.

4. The Midnight House, by Alex Berenson

The events that take place in 2008 in the Midnight House — a site in Poland where prisoners in the “war on terror” are interrogated and often tortured — are so explosive, and so shocking, that they lead to an upheaval in relations between the U.S. and Pakistan, end the career of a senior U.S. intelligence official, and spark a series of brutal murders. There’s nothing subtle about this gripping novel.

5. The Silent Oligarch, by Chris Morgan Jones

This finely crafted novel revolves around an obscure Russian bureaucrat named Konstantin Malin, a lifer in the Ministry of Oil and Industry who controls a large share of his country’s oil and gas industry, the world’s largest. His front man is an English expat lawyer in Moscow, Richard Lack, whose cozy life in Moscow begins coming apart when a Greek oilman, one of the many wealthy businessmen Malin has cheated, decides to unmask Malin’s fraud and put him out of business.

6. Mission to Paris, by Alan Furst

It is late in 1938, with Europe on the brink of war. With Chamberlain’s capitulation at Munich and the tragedy of Kristallnacht unfolding in the background, an Austrian-born Hollywood film star named Fredric Stahl has come to Paris at the behest of Jack Warner to star on loan to Paramount Pictures in a war movie. The resolutely anti-Nazi Stahl finds himself targeted by Nazi operatives intent on enmeshing him in their propaganda machine.

7. Breakdown, by Sara Paretsky

Paretsky’s 14th V. I. Warshawski novel begins with seeming innocence with a gaggle of tweener girls dancing under the moonlight in an abandoned cemetery. Soon enough, however, we find ourselves enmeshed in the mysteries of some of Chicago’s wealthiest and most powerful citizens as well as a roomful of other indelibly drawn characters who illustrate Chicago at its best — and its worst.

8. 36 Yalta Boulevard, by Olen Steinhauer

The third novel in Olen Steinhauer’s outstanding Central European cycle is set in 1966-67. Brano Sev, a World War II partisan fighter turned secret policeman in an unnamed Soviet satellite country, has been exiled to work in a factory as punishment for an espionage scandal that erupted after he was sent on assignment to Vienna. Without warning, his superiors temporarily reinstate him as a major in the security service, and send him off to his home village, where he is to investigate why a defector has suddenly returned to the village and what he’s planning to do. The ensuing complications threaten not just to end Brano’s career but possibly his life as well.

9. The Ghosts of Belfast, by Stuart Neville

You may never have read a murder mystery like this one. The protagonist, Gerry Fegan, is a former hit man for the IRA responsible for the deaths of twelve people (the “ghosts” of the title), and it’s never much of a mystery when he begins killing again. The mystery lies deeper, somewhere in the vicinity of his stunted family life and the treacherous relationships among the others in his violence-prone faction. As Fegan reflects, “You can’t choose where you belong, and where you don’t. But what if the place you don’t belong is the only place you have left?”

10. Criminal, by Karin Slaughter

In every one of Karin Slaughter’s previous novels of murder and mayhem in the Deep South, Georgia Bureau of Investigation (GBI) officer Will Trent and his boss, Amanda Wagner, GBI’s deputy commander, were characters shrouded in mystery, their actions frequently difficult to understand. In Criminal, Slaughter rips off the shrouds. This is an unusually suspenseful, affecting, and, in the end, deeply satisfying story.

An eminently readable book about how experts make sense of the world (or don’t)

A review of The Signal and the Noise: Why So Many Predictions Fail — But Some Don’t, by Nate Silver

@@@@@ (5 out of 5)

Statisticians rarely become superstars, but Nate Silver is getting close. This is the guy who writes the FiveThirtyEight.com blog for the New York Times and has correctly predicted the outcome of the last two presidential elections in virtually every one of the 50 states. But Silver is no political maven weaned on election trivia at his parents’ dinner table: he earned his stripes as a prognosticator supporting himself on Internet poker and going Billy Beane of the Oakland A’s (Moneyball) one better by developing an even more sophisticated statistical analysis of what it takes to win major league baseball games. And, by the way: Silver is just 34 years old as I write this post.

The Signal and the Noise is Silver’s first book, and what a book it is! As you might expect from this gifted enfant terrible, the book is as ambitious as it is digestible. Written in an easy, conversational style, The Signal and the Noise explores the ins and outs of predicting outcomes not just in politics, poker, and sports (baseball and basketball) as well as the stock market, the economy, and the 2008 financial meltdown, weather forecasting, earthquakes, epidemic disease, chess, climate change, and terrorism.

Fundamentally, The Signal and the Noise is about the information glut we’re all drowning in now and how an educated person can make a little more sense out of it. As Silver notes, “The instinctual shortcut we take when we have ‘too much information’ is to engage with it selectively, picking out the parts we like and ignoring the remainder, making allies with those who have made the same choices and enemies of the rest.” What else could explain why Mitt Romney was “shell-shocked” and Karl Rove was astonished by Romney’s loss in a presidential election that every dispassionate observer knew was going Obama’s way?

Silver asserts that “our predictions may be more prone to failure in the era of Big Data. As there is an exponential increase in the amount of available information, there is likewise an exponential increase in the number of hypotheses to investigate . . . But the number of meaningful relationships in the data . . . is orders of magnitude smaller. Nor is it likely to be increasing at nearly so fast a rate as the information itself; there isn’t any more truth in the world than there was before the Internet or the printing press. Most of the data is just noise, as most of the universe is filled with empty space.”

Sadly, it’s not just in politics that bias clouds judgment and leads to erroneous conclusions. “In 2005, an Athens-raised medical researcher named John P. Ioannidis published a controversial paper titled ‘Why Most Published Research Findings Are False.’ The paper studied positive findings documented in peer-reviewed journals: descriptions of successful predictions of medical hypotheses carried out in laboratory experiments. It concluded that most of these findings were likely to fail when applied in the real world. Bayer Laboratories recently confirmed Ioannidis’s hypothesis. They could not replicate about two-thirds of the positive findings claimed in medical journals when they attempted the experiments themselves.”

In general, Silver’s thesis runs, “We need to stop, and admit it: we have a prediction problem. We love to predict things — and we aren’t very good at it. . . We focus on those signals that tell a story about the world as we would like it to be, not how it really is. We ignore the risks that are hardest to measure, even when they pose the greatest threats to our well-being. We make approximations and assumptions about the world that are much cruder than we realize. We abhor uncertainty, even when it is an irreducible part of the problem we are trying to solve.”

There’s more: Silver relates the work of a UC Berkeley psychology and political science professor named Philip Tetlock, who categorizes experts as either foxes or hedgehogs (in deference to an ancient Greek poet who wrote, “The fox knows many little things, but the hedgehog knows one big thing.”). Hedgehogs traffic in Big Ideas and often hew to ideologies; these are the people who talk to the press and are frequently found on TV talk shows. Foxes are cautious types who carefully examine and weigh details before reaching conclusions. Not surprisingly, Tetlock found that “The more interviews that an expert had done with the press . . . the worse his predictions tended to be.”

In other words, Be afraid. Be very afraid. If the people who supposedly know what they’re talking about often really don’t, how can the rest of us figure out what’s going on?

Books that helped me understand the world

During the last several years — mostly after I bought my first Kindle — I’ve spent a great deal of time reading, roughly half of it fiction, the other half non. I’ve gotten through hundreds of books and have reviewed the last 200 or so in this blog. It feels like a good time to cast a backwards look and identify those books that remain vivid in my memory — books that helped me understand the way the world works. Though most of the fiction I’ve read has been simply enjoyable, a few have touched me. None, though, have really nestled deep into memory and changed the way I view life and the world. I learn mostly from nonfiction. Whatever that says about my character — so be it.

Here, then, are the 20 nonfiction books that have impressed me the most in recent years. They’re arranged in alphabetical order by the authors’ last names. Those I’ve reviewed are boldfaced and linked.

Alexander, Michelle, The New Jim Crow. A shocking survey of the consequences of America’s so-called War on Drugs and the racism in our justice system

Banerjee, Abhijit, and Esther Duflo, Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty. A rigorous and balanced view of both top-down and bottoms-up development policies in the light of field research

Clark, Gregory, A Farewell to Alms: A Brief Economic History of the World. History as I like it: painted in broad swaths across the millennia, rejecting the myth that the “West” was destined to rule the world

Diamond, Jared, Guns, Germs, and Steel: The Fates of Human Societies. A brilliantly original view of world history from a geographer’s perspective, ascribing variable levels of development primarily to environmental and geographical factors

Easterly, William, The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good. The case against foreign aid and top-down development, by a former World Bank economist

Elkington, John, and Pamela Hartigan, The Power of Unreasonable People: How Social Entrepreneurs Create Markets That Change the World. The liveliest and most insightful of several books on social entrepreneurs

Gladwell, Malcolm, The Tipping Point: How Little Things Can Make a Big Difference. The seminal book on understanding “six degrees of separation” and the way networks work

Harden, Blaine, Escape from Camp 14: One Man’s Remarkable Odyssey from North Korea to Freedom in the West. A riveting tale of the North Korean gulag, spotlighting the reality of repression in the Kim family’s private kingdom

Hochschild, Adam, King Leopold’s Ghost: A Story of Greed, Terror, and Heroism in Colonial Africa. One of the most troubling books I’ve ever read about the legacy of colonialism: the harrowing story of how the Belgian King destroyed the Congo and murdered millions of its people

Johnson, Chalmers, Blowback: The Costs and Consequences of American Empire. A scholar and former U.S. official demonstrates how the U.S. dominates the world through hundreds of military bases, undermining our nation’s reputation and robbing our society of the means to address pressing social problems

Larson, Erik, In the Garden of Beasts: Love, Terror, and an American Family in Hitler’s Berlin. An eye-opening account of U.S. official anti-Semitism in FDR’s Administration that shackled our Ambassador in Berlin who witnessed the outrageous acts unfolding in Nazi Germany

Mann, Charles C., 1491: New Revelations of the Americas Before Columbus. A revisionist view of Native American society in both North and South America, offering proof of huge populations and sophisticated civilizations in the present-day U.S. and in the Amazon Basin

Miller, Brian, and Mike Lapham, The Self-Made Myth: And the Truth about How Government Helps Individuals and Businesses Succeed. A clear-eyed look beyond the bounds of Right-Wing ideology at the immeasurable benefits and services every “self-made man” has received from U.S. society

Mukherjee, Siddhartha, The Emperor of All Maladies. An oncologist’s brilliant history of cancer and of the medical profession’s slowly developing success in treating it

Polak, Paul, Out of Poverty: What Works When Traditional Approaches Fail. How a former psychiatrist, laboring face-to-face with $1-a-day farmers in some of the world’s poorest countries, helped 17 million families escape from poverty

Priest, Dana, and William M. Arkin, Top Secret America: The Rise of the New American Security State. A Pulitzer-Award-winning Washington Post reporter and her researcher rip the cover from the enormous intelligence establishment built after 9-11

Skloot, Rebecca, The Immortal Life of Henrietta Lacks. A science reporter’s captivating ten-year search to understand the consequences of a medical crime committed in an overtly racist era before the rise of medical ethics

Ward, Vicky, The Devil’s Casino: Friendship, Betrayal, and the High Stakes Games Played Inside Lehman Brothers. The most intimate and candid account of how Wall Street played the central role in launching the Great Recession

Wrong, Michela, It’s Our Turn to Eat: The Story of a Kenyan Whistle-Blower. A vivid account by a Financial Times reporter of how corruption holds sway even in one of Africa’s most developed economies 

The best books I’ve read so far this year

You have to wait until December to see a list of “best books” in The New York Times Book Review, but right here in this space you can see my list for the first six months of 2012! Of course, it’s a short list, and quite specialized, since there are lots of categories of writing that hold no interest for me. And I don’t limit myself to books that were published after January 1, 2012 (though most were). After all, I’m not The New York Times. But, for what it is, here goes, in no particular order . . . with links to my reviews in this blog.

Nonfiction

The Passage of Power, by Robert A. Caro. Volume 4 in The Years of Lyndon Johnson. Robert Caro’s masterful portrait of Lyndon Johnson’s early days as President.

Confront and Conceal: Obama’s Secret Wars and Surprising Use of American Power, by David E. Sanger. Barack Obama’s foreign and military policy viewed from the inside.

The Power of Unreasonable People: How Social Entrepreneurs Create Markets That Change the World, by John Elkington and Pamela Hartigan. The power of unreasonable people, and how they’re changing the world.

The Self-Made Myth, and the Truth About How Government Helps Individuals and Businesses Succeed, by Brian Miller and Mike Lapham. A brilliant contribution to the public debate about politics and the economy.

The New Jim Crow: Mass Incarceration in the Age of Colorblindness, by Michelle Alexander. One of the most important books published in English so far this century.

Behind the Beautiful Forevers: Life, Death, and Hope in a Mumbai Undercity, by Katherine Boo. A searing look at poverty in India that reads like a novel.

The Quest: Energy, Security, and the Remaking of the Modern World, by Daniel Yergin. Daniel Yergin’s superb new book: a brilliant survey of energy issues.

Infinite Vision: How Aravind Became the World’s Greatest Business Case for Compassion, by Pavithra Mehta and Suchitra Shenoy. Aravind: A social enterprise with scale and impact to match Grameen Bank.

1491: New Revelations of the Americas Before Columbus, by Charles C. Mann. Astonishing new evidence about the Americas before Columbus.

Trade Fiction

They Eat Puppies, Don’t They?, by Christopher Buckley. Washington and Beijing get what they deserve in this satirical novel of politics and diplomacy today.

The Windup Girl, by Paolo Bacigalupi. One of the best science fiction novels I’ve ever read.

The Orphan Master’s Son, by Adam Johnson. An unsparing tale of life in the living hell of North Korea.

Incendiary, by Chris Cleave. A wrenching portrait of the human cost of terrorism.

The Fear Index, by Robert Harris. A taut thriller about the world of multibillion-dollar hedge funds.

A Theory of Small Earthquakes, by Meredith Maran. A first novel from a brilliant nonfiction writer.

Mysteries and Thrillers

Mission to Paris, by Alan Furst. A truly superior novel of espionage at the dawn of World War II.

The Midnight House, by Alex Berenson. The Pentagon and the CIA take a lot of punishment in this novel of rendition and torture.

Harbor Nocturne, by Joseph Wambaugh. Joseph Wambaugh’s latest paints Los Angeles in many clashing colors.

The Limpopo Academy of Private Detection, by Alexander McCall Smith. An exceptional tale of Botswana’s #1 Ladies’ Detective Agency.

Buried Secrets, by Joseph Finder. A thriller that explores the intersection of high finance and high crime.

The Ghosts of Belfast, by Stuart Neville. A grim story of war and betrayal in Northern Ireland.

The Bridge of Sighs, by Olen Steinhauer. A fully satisfying murder mystery set in post-war Europe.

Breakdown, by Sara Paretsky. Sara Paretsky’s latest detective story hits home.

Believing the Lie, by Elizabeth George. Elizabeth George’s latest Inspector Lynley novel, unpredictable as always.

The Silent Oligarch, by Chris Morgan Jones. A refreshingly original new thriller that explores international intrigue with minimal violence.

Agent 6, by Tom Rob Smith. A superb suspense novel set in the USSR, Afghanistan, and the U.S.

Eight recent books that illuminate the state of affairs in America today

In recent months I’ve reviewed eight nonfiction books in this blog that collectively represent a panoramic view of America today — and of our prospects to thrive in the future. It’s a decidedly mixed picture, but I’m convinced it’s real. Together, the books in this accessible little collection constitute a primer on the challenges we face as a nation.

If you want to read the original review of one of these books, simply click on the title below.

Hot: Living Through the Next Fifty Years on Earth, by Mark Hertsgaard. An able journalist who specializes in reporting on the environment generally and global warming in particular interviews many of the world’s top scientists in the field — and comes away gloomier than ever.

The Self-Made Myth, and the Truth About How Government Helps Individuals and Businesses Succeed, by Brian Miller and Mike Lapham. The directors of United for a Fair Economy and its project, Responsible Wealth, respectively, explode the Ayn Rand myth that corporate leaders are self-made “job creators” who did it all on their own, and that the rest of us deserve our fate.

99 to 1: How Wealth Inequality Is Wrecking the World and What We Can Do About It, by Chuck Collins. The founder and former director of United for a Fair Economy, now at the Institute for Policy Studies, is one of the country’s top experts on the gap between the really rich and the rest of us. He prescribes action to build a new economy that will benefit all 100%.

The New Jim Crow: Mass Incarceration in the Age of Colorblindness, by Michelle Alexander. A veteran civil rights lawyer exposes the horrific consequences of the War on Drugs, including the institutionalization of racism in American jurisprudence. This is a shocking indictment of our political and judicial leadership over the past three decades.

Corporations Are Not People: Why They Have More Rights Than You Do and What You Can Do About It, by Jeffrey D. Clements. A former Massachusetts assistant attorney general examines the four-decade legal history that culminated in the Citizens United decision, details how it undermines American democracy, and lays out a strategy to fight back.

Rebuild the Dream, by Van Jones. One of our nation’s most passionate and insightful young leaders, building on his experience both as an activist and in the White House, analyzes the similarities and differences among the Tea Party, the Occupy Movement, and the 2008 Obama campaign and its aftermath. He advocates a grassroots citizens’ movement to regain political advantage over the extreme Right Wing.

Republican Gomorra: Inside the Movement That Shattered the Party, by Max Blumenthal. A young journalist, author, and blogger digs through the history of the Religious Right and turns up an astonishing story of its antecedents — and of the true, often masked, beliefs of its current leaders.

Top Secret America: The Rise of the New American Security State, by Dana Priest and William M. Arkin. A Pulitzer-Prize-winning reporter for the Washington Post and her researcher and co-author root around through the maze of our country’s 16 federal intelligence agencies and reveal just how far we’ve come in the years since 9/11 from our cherished self-image of a government “of the people, by the people, and for the people.”

Citizens United, corporate personhood, and the movement to restore political power to the people

A review of Corporations Are Not People: Why They Have More Rights Than You Do and What You Can Do About It, by Jeffrey D. Clements

@@@@@ (5 out of 5)

If you’re like most Americans, you may think that the Supreme Court’s decision in Citizens United v. Federal Election Commission is the root cause of the stranglehold on U.S. elections by major corporations and the 1%.

If you follow public affairs more closely than most, you’re aware that the situation is more complicated than this — that the misbegotten principle of “corporate personhood” that underpins Citizens United is a major element in the picture. I knew that much before I read Jeffrey Clements’ eye-opening book, Corporations Are Not People – but I didn’t have a clue where that concept came from, how it grew into one of the dominant judicial doctrines of the last several decades, or the truly pivotal role it has played in recent American history.

In fact, Citizens United was only one of the latest episodes in a four-decade-long history of legal, political, and social change that has moved the center of gravity in public discourse in America so far to the right that our last two Democratic Presidents can only be seen in global context as moderate conservatives, while today’s Republican leaders hold such extreme views that to term them “conservative” is a gross misuse of the language.

As Jeffrey Clements tells it, the story begins in 1970 with the first Earth Day. The mobilization of more than 20 million Americans in that masterful organizing effort led to the passage of a long series of laws that established the basis for long-overdue environmental regulation: the creation of the Environmental Protection Agency, the Occupational Health and Safety Act that created OSHA, the Clean Air Act, and a host of others.

Then the corporate world struck back.

A soft-spoken Southern attorney named Lewis F. Powell, Jr. led the charge. Powell was defending Philip Morris in the growing wave of lawsuits about cigarette smoking in the 1960s and sat on its board. Shortly before accepting his appointment to the Supreme Court by Richard Nixon in 1971, Powell wrote a now-infamous memo to a friend at the U. S. Chamber of Commerce, the bastion of corporate America. The “Powell Memo” kicked off the four-decade assault by the corporate elite and the 1% that stifles American democracy today.

Under the title “Attack on American Free Enterprise System,” Powell explained, “‘No thoughtful person can question that the American economic system is under broad attack.’ In response, corporations must organize and fund a drive to achieve political power through ‘united action.’” As a lawyer, Powell naturally saw the courts as the centerpiece of the pro-corporate strategy he advocated. “Activist judges” on courts throughout the land, and especially on the U. S. Supreme Court, would roll back legislation such as the flood of new environmental laws.

The corporate campaign rolled out in the years after Powell’s memo in spheres of activity: lobbying Congress, state legislatures, and the public through industry front groups such as the Tobacco Institute and the Edison Electric Institute; electing or appointing pro-corporate judges such as Powell himself; and influencing public education and shaping public opinion through a flotilla of Right-Wing think tanks including the Heritage Foundation, the Cato Institute, the Manhattan Institute, and many others.

Since Powell’s memo circulated in the upper echelons of corporate America in 1971, corporations, primarily the large transnational companies that dominate the Chamber of Commerce, have poured billions of dollars into these activities. However, until his death in 1998, Lewis Powell continued to lead the pro-corporate effort from his seat on the U. S. Supreme Court. In the early and mid-1970s, Powell was thwarted by Chief Justice William Rehnquist, but the tide turned in 1978 when Powell prevailed over strenuous objections from the Chief in a case that firmly established the “right” of corporations to flaunt laws passed to keep them in check by establishing the principle of corporate personhood.

Corporations Are Not People is an activist plea for readers to join the gathering movement to overturn Citizens United, wrest political power from the corporations, and put it back in the hands of people. As Jeffrey Clements sees it, there are “three essential steps to roll back corporate dominance of government: (1) a twenty-eighth amendment to the Constitution that will overturn Citizens United and corporate rights and restore people’s rights; (2) corporate accountability and charter reform to ensure that corporations better reflect the public policy reasons for which we allow the legal benefits of incorporation, such as limited liability, in the first place; and (3) election law reform, including increased public funding, greater transparency, and an end to legal political bribery.”

As an advocate for public funding of elections since 1972 and a long-time participant in electoral politics at every level – local, regional, statewide, and national – I find Clements’ three steps to be right on target. The structural reforms he proposes would strike at the heart of the forces that are strangling our political rights and advancing the interests of the 1% against those of the 99%.

Much of Corporations Are Not People is devoted to the many resources offered readers at the back of the book: the wording of the proposed 28th Amendment; a draft resolution favoring passage of the amendment that organizations and local governmental bodies may adopt; and contact information for the growing list of organizations that are coming together in the new movement to roll back corporate power.

Jeffrey D. Clements is an attorney in Concord, Massachusetts. A former Assistant Attorney General of his state, he cofounded Free Speech for People following the ruling in Citizens United.

Van Jones: Making sense of the Tea Party, the Occupy Movement, and Barack Obama’s shift from candidate to President

A review of Rebuild the Dream, by Van Jones

@@@@@ (5 out of 5)

I always knew Van Jones was smart, but I didn’t know just how smart until I read Rebuild the Dream. In recent years, Jones has emerged as one of the most charismatic and outspoken younger leaders of our time. This book proves he has also become one of the most insightful, too.

We live at a time when far too few of us can make sense of what’s happening around us. With the incessant noise of the news media, our full immersion online from dawn to dusk, and the endless distractions of entertainment reflecting a thousand subcultures, it’s all too easy to just lie back and let it all happen, convincing ourselves that no one could possibly perceive meaningful patterns in this donnybrook we call contemporary American life. Jones does, though.

In Rebuild the Dream, he asks — and answers — three questions:

• “What can Americans who want to fix the system learn from the movement for hope and change that united around Barack Obama in 2008 — and from its collapse after he entered the White House?
• “What can we learn from the Tea Party’s equally impressive capture of the national debate in 2009 — and its successful pivot to electoral politics in 2010?”
• And what can we learn from the startling success of Occupy Wall Street in elevating economic inequality to the top of the political agenda in 2011 — and of its failure to translate that success into the electoral arena?

Rebuild the Dream has been greeted as a call to arms to progressives, an exhortation to reenergize ourselves for the November 2012 elections. That’s true, so far as it goes. But this book is far more valuable for its clear-eyed analysis of today’s political scene. Van Jones has devised a simple analytical framework through which we can see — clearly — the similarities and differences among the Occupy Wall Street and Tea Party movements and the 2008 Obama campaign and its aftermath. If Rebuild the Dream is useful as a guidebook for activists determined to swing the pendulum back to the left, in the long run it will be an even better resource for historians and social scientists attempting to understand this tumultuous era in American history.

However, simply as a call to arms, Rebuild the Dream is compelling: “The time has come to turn things right side up again and declare that America’s honest, hard-working middle class is too big to fail. The aspirations of our low-income, struggling, and marginalized communities are too big and important to fail . . .  The American Dream itself is too big to fail.”

I’ve known Van Jones for more than a decade, first through the Ella Baker Center for Human Rights, which he founded in Oakland in the mid-1990s, and later through Social Venture Network, of which we we were both members. Van also co-founded the online activist organization Color of Change and later, reflecting his turn to environmental activism and his passionate belief that the environment and the economy both benefit hugely by creating “Green Jobs,” he founded Green for All. Along the way, he also managed to write a New York Times-bestselling book, The Green Collar Economy. Having accomplished all this, however, Jones is nonetheless best-known for his six-month stay in the White House as Special Advisor for Green Jobs, Enterprise, and Innovation to President Obama.

It is clearly no coincidence that Color of Change is credited with triggering the successful boycott of Glenn Beck’s hysterical outbursts on Fox News that was responsible for his leaving the network, and that Beck in turn was a central figure in the Right-Wing smear campaign that drove Jones out of his job in the White House.

Jones is a Yale-educated attorney who was born and raised in Tennessee. He is African-American. He is also a very good person to have as a friend. You’ll find an extensive biography of Van Jones here.