Economics for Everyone: A Short Guide to the Economics of Capitalism [Paperback]

I would highly recommend this book for those seeking a balanced introduction to economics. It is easily digestible whilst tackling key concepts that are normally obfuscated by conventional economic explanations- for all the wrong reasons..

Whilst I would never imply that one solitary book can provide an understanding of a topic this book will serve well the reader who occasionally delves into economic matters and wants a balanced book with a good overview of the field.

The effect for me was a greater understanding and a more optimistic and empowered view of economics.

Jim Stanford, who is economist for the Canadian Auto Workers union, has produced a useful introduction to the economics of capitalism. He shows us capitalism's basics: work, tools and profit; how it works (or doesn't) as a system; its complexity; and various challenges to capitalism. He shows up capitalism's inherent failings and proposes policies that would be in the interests of the working class, the vast majority of the population in industrial countries.

He points out, "Most modern jobs and careers fall into the category of wage labour - whether they are in private companies or public agencies, blue-collar or white-collar. The stereotype of a `worker' as someone who performs menial tasks on an assembly line is badly outdated. Workers today perform a wide variety of functions, many of them requiring advanced skills. But they are still workers, so long as they perform that work for somebody else, in return for a wage or salary. Scientists in a research laboratory; surgeons in a large hospital; engineers in a construction firm - these are all workers (although culturally, they may not like to define themselves as such). They perform their labour in return for a salary, and they do not own or significantly control the organization which they work for."

He shows that the capitalist class is just two per cent of the population, and note, "Many of these rich individuals work; but the key distinction here is that they don't have to work, since they own enough business wealth to support themselves very comfortably without working."

He praises Cuba: "Socialist Cuba - where average health outcomes are superior to those in the US - manages to do more, given its GDP, to improve human welfare than any other country in the world. ... Cuba's admirable social achievements (its education, health, and cultural indicators outrank most developing countries, and even many developed countries) demonstrate the potential of socialism to leverage the maximum possible well-being from a given amount of material production."

He also points out how employers gain from the free movement of labour: "employers are permitted to re-create abundant supplies of cheap, desperate labour by exploiting vulnerable immigrants ... Capitalists may encourage these migrations when they face uncomfortably tight labour market conditions in particular countries (in which case immigration is a convenient way to keep a lid on wages)."

As he observes, "Migrants are treated as temporary, second-class citizens, often forced to return to their country of origin when their jobs are finished, and subjected to social and legal abuses in the interim. Their migration can also harm the countries they leave - especially since it is usually the best-educated, most capable people who are allowed to migrate to better-paying opportunities in other countries."

I'm fairly new to economics so I enjoyed the fact that the author explained the basics in simple, easy-to-understand terms.

He does have an obvious political agenda as a union economist, which can be frustrating as you try to skip through the rather mindless repetition to the next good bit. It's a minor concern, but enough to distract from an otherwise great read.

It did make me realise how easy it is just to accept that things are the way they are because that's the way it should be. There are other ways of running an economic system - the one we've got is just a step in an ever-evolving science.