Jacob Soll

As individuals, we depend on the services that governments provide. Collectively, we look to them to tackle the big problems - from long-term climate and demographic change to short-term crises like pandemics or war. Funding this activity, and managing the required finances sustainably, is difficult – and getting more so. But governments don't provide – or use – basic financial information that every business is required to maintain. They ignore the value of public assets and most liabilities. This leads to inefficiency and bad decision-making and piles up problems for the future. Governments need to create balance sheets that properly reflect assets and liabilities, and to understand their future obligations and revenue prospects. Net Worth – both today and for the future – should be the measure of financial strength and success. Only if this information is put at the centre of government financial decision-making can the present challenges to public finances around the world be addressed effectively, and in a way that is fair to future generations. The good news is that there are ways to deal with these problems and make government finances more resilient and fairer to future generations. The facts, and the solutions, are non-partisan, and so is this book. Responsible leaders of any political persuasion need to understand the issues and the tools that can enable them to deliver policy within these constraints.

As individuals, we depend on the services that governments provide. Collectively, we look to them to tackle the big problems - from long-term climate and demographic change to short-term crises like pandemics or war. Funding this activity, and managing the required finances sustainably, is difficult – and getting more so. But governments don't provide – or use – basic financial information that every business is required to maintain. They ignore the value of public assets and most liabilities. This leads to inefficiency and bad decision-making and piles up problems for the future. Governments need to create balance sheets that properly reflect assets and liabilities, and to understand their future obligations and revenue prospects. Net Worth – both today and for the future – should be the measure of financial strength and success. Only if this information is put at the centre of government financial decision-making can the present challenges to public finances around the world be addressed effectively, and in a way that is fair to future generations. The good news is that there are ways to deal with these problems and make government finances more resilient and fairer to future generations. The facts, and the solutions, are non-partisan, and so is this book. Responsible leaders of any political persuasion need to understand the issues and the tools that can enable them to deliver policy within these constraints.

After two government bailouts of the American economy in less than twenty years, free market thought is due for serious reappraisal. Free Market: The History of an Idea shows how the idea became so powerful, why it succeeded, and why it has failed so spectacularly. In 1990, the G7 Countries enjoyed 70 percent of world GDP. In the face of the collapse of the Soviet Union, it was supposed to be a story of the success of free markets. However, in the past thirty years, that number has dropped by half, and Asia has emerged as a major motor of world economic growth. Today, state-run China is the second biggest economy on earth, and tiny Singapore, with its state-owned companies, has become a new model of wealth creation. In other words, Milton Friedman's free market dogma, that only private companies can create wealth and that states hamper it, has not proved very clearly to be untrue. This book shows how we got to the current crisis of free market thought, and suggests how we can find our way out. Contrary to popular free market narratives, early market theorists believed that states had an important role in building and maintaining free markets. But in the eighteenth century, some free-market thinkers began insisting only pure free markets, without state intervention, could work. A tradition of free-market ideological brittleness emerged, and it has led orthodox free market economics to some spectacular failures. It is a paradox that an economic theory rooted in the idea of competition, adaptation and evolution, has refused to follow its own precepts. This book shows that we need to go back to the origins of free market thought in order to understand its dynamism, as well as its inherent weaknesses, and to develop new economic concepts to face the staggering challenges of the twenty-first century.

In The Reckoning, award-winning historian Jacob Soll shows how the use and misuse of financial bookkeeping has determined the fates of entire societies. Time and again, Soll reveals, good and honest accounting has been a tool to build successful companies, states and empires. Yet when it is neglected or falls into the wrong hands, accounting has contributed to cycles of destruction that continue to this day. Combining rigorous scholarship and fresh storytelling, The Reckoning traces the surprisingly powerful influence of accounting on financial and political stability, from the powerful Medici bank in the 14th century Italy to the 2008 financial crisis.

Whether building a road or fighting a war, leaders from ancient Mesopotamia to the present have relied on financial accounting to track their state's assets and guide its policies. Basic accounting tools such as auditing and double-entry bookkeeping form the basis of modern capitalism and the nation-state. Yet our appreciation for accounting and its formative role throughout history remains minimal at best,and we remain ignorant at our peril. The 2008 financial crisis is only the most recent example of how poor or risky practices can shake, and even bring down, entire societies. In The Reckoning , historian and MacArthur Genius" Award-winner Jacob Soll presents a sweeping history of accounting, drawing on a wealth of examples from over a millennia of human history to reveal how accounting has shaped kingdoms, empires, and entire civilizations. The Medici family of 15th century Florence used the double-entry method to win the loyalty of their clients, but eventually began to misrepresent their accounts, ultimately contributing to the economic decline of the Florentine state itself. In the 17th and 18th centuries, European rulers shunned honest accounting, understanding that accurate bookkeeping would constrain their spending and throw their legitimacy into question. And in fact, when King Louis XVI's director of finances published the crown's accounts in 1781, his revelations provoked a public outcry that helped to fuel the French Revolution. When transparent accounting finally took hold in the 19th Century, the practice helped England establish a global empire. But both inept and willfully misused accounting persist, as the catastrophic Stock Market Crash of 1929 and the Great Recession of 2008 have made all too clear. A masterwork of economic and political history, and a radically new perspective on the recent past, The Reckoning compels us to see how accounting is an essential instrument of great institutions and nations,and one that, in our increasingly transparent and interconnected world, has never been more vital.

"Colbert has long been celebrated as Louis XIV's minister of finance, trade, and industry. More recently, he has been viewed as his minister of culture and propaganda. In this lively and persuasive book, Jake Soll has given us a third Colbert, the information manager."---Peter Burke, University of Cambridge"Jacob Soll gives us a road map drawn from the French state under Colbert. With a stunning attention to detail Colbert used knowledge in the service of enhancingroyal power. Jacob Soll's scholarship is impeccable and his story longoverdue and compelling."---Margaret Jacob, University of California, Los Angeles"Nowadays we all know that information is the key to power, and that the masters of information rule the world. Jacob Soll teaches us that Jean-Baptiste Colbert had grasped this principle three and a half centuries ago, and used it to construct a new kind of state. This imaginative, erudite, and powerfully written book re-creates the history of libraries and archives in early modern Europe, and ties them in a novel and convincing way to the new statecraft of Europe's absolute monarchs."---Anthony Grafton, Princeton University"Brilliantly researched, superbly told, and timely, Soll's story is crucial for the history of the modern state."---Keith Baker, Stanford UniversityWhen Louis XIV asked his minister Jean-Baptiste Colbert---the man who was to oversee the building of Versailles and the Royal Academy of Sciences, as well as the navy, the Paris police force, and French industry---to build a large-scale administrative government, Colbert created an unprecedented information system for political power. In The Information Master, Jacob Soll shows how the legacy of Colbert's encyclopedic tradition lies at the very center of the rise of the modern state and was a precursor to industrial intelligence and Internet search engines. Soll's innovative look at Colbert's rise to power argues that his practice of collecting knowledge originated from techniques of church scholarship and from Renaissance Italy, where merchants recognized the power to be gained from merging scholarship, finance, and library science. With his connection of interdisciplinary approaches---regarding accounting, state administration, archives, libraries, merchant techniques, ecclesiastical culture, policing, and humanist pedagogy---Soll has written an innovative book that will redefine not only the history of the reign of Louis XIV and information science but also the study of political and economic history. Jacket illustration: Jean Baptiste Colbert (1619–1683), Philippe de Champaigne, 1655, The Metropolitan Museum of Art, Gift of the Wildenstein Foundation, Inc., 1951 (51.34). Photograph © 2003 The Metropolitan Museum of Art.

As new ideas arose during the Enlightenment, many political thinkers published their own versions of popular early modern "absolutist" texts and transformed them into manuals of political resistance. As a result, these works never achieved a fixed and stable edition. Publishing The Prince illustrates how Abraham-Nicolas Amelot de La Houssaye created the most popular late seventeenth- and eighteenth-century version of Machiavelli's masterpiece. In the process of translating, Amelot also transformed the work, altering its form and meaning, and his ideas spread through later editions. Revising the orthodox schema of the public sphere in which political authority shifted away from the crown with the rise of bourgeois civil society in the eighteenth century, Soll uses the example of Amelot to show for the first time how the public sphere in fact grew out of the learned and even royal libraries of erudite scholars and the bookshops of subversive, not-so-polite publicists of the republic of letters. Jacob Soll is Associate Professor of History at Rutgers University. Cover art courtesy of Annenberg Rare Book Room and Manuscript Library, University of PennsylvaniaJacket Design: Stephanie Milanowski"Jacob Soll traces the origins of Enlightenment criticism to the practices of learned humanists and hard-pressed literary entrepreneurs. This learned and lively book is also a tour de force of historical research and interpretation."---Anthony Grafton, author of Cardano's Cosmos and Bring Out Your Dead"Brilliant. How the printed page changed political philosophy into investigative reporting, and reason of state into the unmasking of power."---J. G. A. Pocock, author of The Machiavellian Moment"Soll's path-breaking study is a 'must read' for all those interested in the history of political thought and early modern intellectual history."---Barbara Shapiro, University of California Berkeley"Soll has done [Amelot] and his context justice, writing as he does with a clear, singular, and welcome voice." ---Margaret C. Jacobs, American Historical Review