Tuesday, August 5, 2014

The Best Econs Textbook I read in my life - in just one picture

*Unfortunately, politics and economics are extremely linked. I HATE discussing about politics, which is why I have a blog, where I shall just dictate my own views. If I do not appreciate your comments, I will delete them. This is akin to having a discussion where one person puts their fingers in their ears and go LA-LA-LA-LA. That would be me. We all form our own personal beliefs on religion and politics, and I believe it is the same for economics.

So I promised one picture, and here is that one picture:

This is taken from The Little Blue Book written by Ha-Joon Chang.

I have long maintained a view - that I stole from someone else that I can't remember, so I can't cite them - that "the economy relies on economists, just like the weather relies on weathermen. It doesn't."

However, economic predictions aside (it still is very fun to try and predict what will happen next, but I just don't think it should be taken too seriously), economic principles are not futile.

I am a strong and ardent believer of the Austrian Economics school of thought. Those wanting a quick overview of the different schools of economics can refer to the picture below.

I find it strange that after centuries of experimenting with different types of economics, people still tend to drift away from the actual practical economics that have been working (Austrian) and are still attracted to the more idealized, but academic and theoretical economics (Keynesian).

*Warning, sensitive political stuff approaching, please skip if it will hurt your feelings*
On the grounds of economics, I abhor communism, but I especially detest socialism. I believe that with free-market capitalism, individuals that choose to acquire skills and work hard will be rewarded for their efforts. The poor in such societies are those without skills, be it tangible skills (electricians, engineers, etc) or intangible skills (accountants, lawyers, etc) or those with such skills that simply mismanaged their own personal capital (money and time). To think that there will not be poor people in any society is borderline fantasy and crazy. The main question I feel that should be asked is: When does someone deserve to be poor? Your answer will be quite telling of your economic and political views.

Economics is not reserved for professors, politicians and bankers. It is something that affects our everyday life, and most people do understand practical economics, even though they might not know the names of the technical jargons that they are a part of. Once people stop thinking of economics as some complex social science and realize it is largely common sense, I think the world can progress as the economy progresses as well. However, as they say, common sense is not very common at all.

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