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Economics is all about humanity’s struggle to achieve happiness in a world full of constraints. There’s never enough time or money to do everything people want, and things like curing cancer are still impossible because the necessary technologies haven’t been developed yet. But people are clever. They tinker and invent, ponder and innovate. They look at what they have and what they can do with it and take steps to make sure that if they can’t have everything, they’ll at least have as much as possible. Having to choose is a fundamental part of everyday life. The science that studies how people choose — economics — is indispensable if you really want to understand human beings both as individuals and as members of larger organizations. Sadly, though, economics has typically been explained so badly that people either dismiss it as impenetrable gobbledygook or stand falsely in awe of it — after all, if it’s hard to understand, it must be important, right? I wrote this book so you can quickly and easily understand economics for what it is — a serious science that studies a serious subject and has developed some seriously good ways of explaining human behavior out in the (very serious) real world. Economics touches on nearly everything, so the returns on reading this book are huge. You’ll understand much more about people, the government, international relations, business, and even environmental issues. The Scottish historian Thomas Carlyle called economics the “dismal science,” but I’m going to do my best to make sure that you don’t come to agree with him. I’ve organized this book to try to get as much economics into you as quickly and effortlessly as possible. I’ve also done my best to keep it lively and fun. In this book, you find the most important economic theories, hypotheses, and discoveries without a zillion obscure details, outdated examples, or complicated mathematical “proofs.” Among the topics covered are
»»How the government fights recessions and unemployment
»»How and why international trade is good for both individuals and nations
»»Why poorly designed property rights are responsible for environmental problems such as global warming, pollution, and species extinctions
»»How profits guide businesses to produce the goods and services you take for granted
»»How economic incentives affect healthcare costs, prices, and efficiency
»»Why competitive firms are almost always better for society than monopolies
»»How the Federal Reserve controls the money supply, interest rates, and inflation all at the same time
»»Why government policies such as price controls and subsidies often cause much more harm than good
»»How the simple supply and demand model can explain the prices of everything from comic books to open-heart surgeries
You can read the chapters in any order, and you can immediately jump to what you need to know without having to read a bunch of stuff that you couldn’t care less about.