At a simple level, economics is about what we produce and how we distribute and use what we produce. Everyone experiences the economy from home to work to shopping to holidays and consequently everyone has a vested interest in it; how it functions, how well it functions and in whose interests. The problem for many is that economics is considered too difficult to understand or a subject best left to the experts. These are two barriers that the author tries to remove.
Capitalism
In the first part of the book the author stresses that capitalism is not the same as the economy and that previous times used different economic models. However, capitalism is the current dominant model and so is the focus of discussion. That focus starts by taking the reader on an imaginary walk in their neighbourhood and relating what is seen all around to the economy. This is then followed with a brief look at economic history, the politics of economics and how capitalism emerged with its variants.
Elements of Capitalism
Having established a succinct overview the author then proceeds to explain the elements of capitalism in more depth and structures the book into additional parts that cover:
- The Basics of Capitalism: Work Tools and Profit – work, production and value, companies and owners
- Capitalism as a System – competition, investment, growth, employment, environment
- Complexity of Capitalism – money, banking, inflation, central banks, stock markets, government, globalisation, development
- Challenging Capitalism – evaluating, improving and possibly replacing capitalism
Economic Roadmap
Throughout the text are useful summary tables and charts and a number of humorous cartoons are also interspersed. Perhaps the most useful cartoon is one that is built up through-out the book and presents an economic roadmap that describes the key elements:
- Workers
- Capitalists
- Environment
- Banks
- Government
- World
As well as the key flows: Investment, Wages, Profits, Consumption, Natural Resources, Debt, Interest, Imports, Exports, Taxes, Government Production, Foreign Direct Investment, International Financial Flows, Migration.
Economics for Everyone
The author has written a useful book that presents economics in a straightforward and simple way such that the non-specialist or lay reader can understand the subject. But why should the non-specialist take an interest? Because as the author remarks: “Never trust an economist with your job. Learn about economics yourself. And make up your own mind about what might protect your job – and what might destroy it”.
About the Author
Jim Stanford is economist for the Canadian Auto Workers union, and economics columnist for the Globe and Mail newspaper.
Economics for Everyone: A Short Guide to the Economics of Capitalism by Jim Stanford. Pluto Press 2008. ISBN: 978-0-7453-2750-1
Roger Lever - Early career was in Treasury Banking and this led to my interest in financial investment, especially the stockmarket. Enjoy reading widely ...
