The big economic story of our times is not the Great Recession. It is how China and India began to embrace neoliberal ideas of economics and attributed a sense of dignity and liberty to the bourgeoisie they had denied for so long. The result was an explosion in economic growth and proof that economic change depends less on foreign trade, investment, or material causes, and a whole lot more on ideas and what people believe.

Or so says Deirdre N. McCloskey in Bourgeois Dignity, a fiercely contrarian history that wages a similar argument about economics in the West. Here she turns her attention to seventeenth- and eighteenth-century Europe to reconsider the birth of the industrial revolution and the rise of capitalism. According to McCloskey, our modern world was not the product of new markets and innovations, but rather the result of shifting opinions about them. During this time, talk of private property, commerce, and even the bourgeoisie itself radically altered, becoming far more approving and flying in the face of prejudices several millennia old. The wealth of nations, then, didn’t grow so dramatically because of economic factors: it grew because rhetoric about markets and free enterprise finally became enthusiastic and encouraging of their inherent dignity.

An utterly fascinating sequel to her critically acclaimed book The Bourgeois Virtues, Bourgeois Dignity is a feast of intellectual riches from one of our most spirited and ambitious historians—a work that will forever change our understanding of how the power of persuasion shapes our economic lives.

Deirdre N. McCloskey has been since 2000 UIC Distinguished Professor of Economics, History, English, and Communication at the University of Illinois at Chicago and was Visiting Tinbergen Professor (2002-2006) of Philosophy, Economics, and Art and Cultural Studies at Erasmus University of Rotterdam. Trained at Harvard as an economist, she has written fourteen books and edited seven more, and has published some three hundred and sixty articles on economic theory, economic history, philosophy, rhetoric, feminism, ethics, and law. She taught for twelve years in Economics at the University of Chicago, and describes herself now as a "postmodern free-market quantitative Episcopalian feminist Aristotelian." Her latest books are How to be Human* *Though an Economist (University of Michigan Press 2001), Measurement and Meaning in Economics (S. Ziliak, ed.; Edward Elgar 2001), The Secret Sins of Economics (Prickly Paradigm Pamphlets, U. of Chicago Press, 2002), The Cult of Statistical Significance: How the Standard Error Costs Us Jobs, Justice, and Lives [with Stephen Ziliak; University of Michigan Press, 2008], and The Bourgeois Virtues: Ethics for an Age of Capitalism (U. of Chicago Press, 2006). Before The Bourgeois Virtues her best-known books were The Rhetoric of Economics (University of Wisconsin Press 1st ed. 1985; 2nd ed. 1998) and Crossing: A Memoir (Chicago 1999), which was a New York Times Notable Book.

Her scientific work has been on economic history, especially British. She is currently writing a book, second in a series of four initiated with The Bourgeois Virtues, on Dutch and British economic and social history, 1600-1800, Bourgeois Towns: How Capitalism Became Ethical, 1600-1800. She has written on British economic "failure" in the 19th century, trade and growth in the 19th century, open field agriculture in the middle ages, the Gold Standard, and the Industrial Revolution.

Her philosophical books include The Rhetoric of Economics (University of Wisconsin Press 1st ed. 1985; 2nd ed. 1998), If You're So Smart: The Narrative of Economic Expertise (University of Chicago Press 1990), and Knowledge and Persuasion in Economics (Cambridge 1994). They concern the maladies of social scientific positivism, the epistemological limits of a future social science, and the promise of a rhetorically sophisticated philosophy of science. Recently she has turned to ethics and to a philosophical-historical apology for modern economies.