How to Think about the Economy
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The Mises Institute dedicates this volume to all of its generous
The Mises Institute dedicates this volume to all of its generous
Supporters and wishes to thank these in particular:
Benefactors
Anonymous, Mr. Ben Davenport, Mr. James P. McMahon
Gregory and Joy Morin, Mr. Akihiko Murai, in Honor of Satoshi Nakamoto
Everett and Kathy Nelson, Mr. William C. Newton, Centro Salinas Pliego
Mr. Eric R. Schwarz, Mr. and Mrs. Gary J. Turpanjian
Mr. and Mrs. Roe Young
Patrons
Mr. Abdelhamid Abdou
Dedication
To Carl Menger, Ludwig von Mises, and the other giants upon whose shoulders I have the great honor of standing.
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THE MISES INSTITUTE, founded in 1982, is an education and research center for the study of Austrian economics. In support of the school of thought represented by Ludwig von Mises, Murray N. Rothbard, Henry Hazlitt, and F.A. Hayek, we publish books and journals, sponsor student and professional conferences, and provide online education. Mises.org is a vast resource of free material for anyone in the world interested in these ideas. We advocate a radical shift in the intellectual climate, away from statism and toward a private property order.
Preface
Preface
This little book was written to accomplish something big: economic literacy. It is intentionally kept very short to be inviting rather than intimidating, as economics books typically are. If I managed to meet this bar, you, the reader, will gain life-changing understanding of how the economy works in practically no time. This is lots of value at a very low cost.
Part I: Economics
PART I
Economics
1. What Economics Is
CHAPTER 1
What Economics Is
Economics is an exciting field.
2. Economic Theory
CHAPTER 2
Economic Theory
Like other sciences and fields of study, economics is a body of theory. Theory is a collection of explanations that allows us to understand something. Economic theory allows us to understand how an economy works. It explains the workings of the economy as a whole so that we can understand the meaning, impact, origins, and evolution of economic phenomena.
3. How to Do Economics
CHAPTER 3
How to Do Economics
Economics is often faulted for being “ideological”—for promoting free markets. This is a misunderstanding.
