Key Insights From:
Basic Economics: A Common Sense Guide to the Economy
- Economics is much simpler and more practical than we’ve been led to believe.
- The price system allocates resources efficiently, and it frees up bureaucrats to do something more productive than micromanaging resources.
- Losses shape businesses and the economy just as much as profits do.
- The market is not an abstract, impersonal entity—it is full of individuals making decisions about what to sell and buy.
- Whether through slaves, serfs, or workers, an economy can’t turn inputs into outputs without some form of labor.
- Age differences make much better sense of income differences than categories of “rich” and “poor.”