Naked Economics: Undressing the Dismal Science

Highly recommend this book - it is easy to follow and it explains complex concepts very well. I am asking my whole family to read this!

I didn’t expect a book on the broad spectrum of economics to be such an enjoyable read. This author has quite a gift for taking a topic with the potential to operate as a sedative and instead making it clever and entertaining. Wheelan concisely and clearly explains an overview of all the facets of economies and does an excellent job of showing the ramifications of decisions by consumers, business and lawmakers. Wheelan shows the reader how our economy (or any economy) necessarily gets put into place, and then examines proposed changes by various leaders and fleshes out what the impact would be of those decisions. He also thoroughly discusses the international markets and shows how essential the connections to them are to an optimized national and global economy. He demonstrates that economics is a web that stretches through all facets of government and societal life. Most of all, he substantiates that productivity is a hinge for society, and denotes the profound impact it has played in the past and continues to play. His purpose in this book is to educate, not to persuade, and that makes it all the better. He sprinkles in many, “wow! I can’t believe that,” stories throughout his chapters that illustrate his points and, more pointedly, keep the text entertaining. I learned so much from this book, and my thinking about economic issues has a more solid framework for having read it. I’ve learned to evaluate and appreciate the vast intricacies that the impact of proposed “fixes” that float around the news would have, and now appreciate the power of productivity in remedying many of life’s difficulties. I highly recommend this book. It gives you ideas to ruminate on well past the pages, and plus it is enjoyable and thus easy to read.

“Naked Economics: Undressing the Dismal Science” by Charles Wheelan is a masterful introduction to the field of economics, aimed at demystifying a subject that is often perceived as complex and inaccessible. Wheelan’s book succeeds in making economic principles understandable and relevant to a broad audience, blending wit, clarity, and practical examples. Content and Structure The book covers an extensive range of topics fundamental to understanding economics, such as incentives, market dynamics, the role of government, productivity, globalization, behavioral economics, and income inequality. Each chapter focuses on a specific aspect of economics, breaking down sophisticated ideas into digestible and engaging segments. Key Themes and Insights 1. Incentives and Behavior: Wheelan underscores the importance of incentives as the primary drivers of economic behavior. He illustrates this with a variety of examples, showing how incentives influence individual and collective decision-making. For instance, he discusses how tax incentives can shape corporate behavior and personal financial choices. 2. Market Efficiency and Failures: A significant portion of the book is dedicated to explaining how markets work, primarily through the interaction of supply and demand. Wheelan adeptly explains concepts like price elasticity, market equilibrium, and externalities. He also addresses market failures, where the free market does not allocate resources efficiently, necessitating government intervention. 3. Government’s Economic Role: While advocating for the efficiency of markets, Wheelan does not shy away from discussing the critical role of government. He outlines how governments can correct market failures, provide public goods, and implement policies to mitigate inequality. For example, he talks about the role of central banks in managing monetary policy to control inflation and stabilize the economy. 4. Globalization: Wheelan explores the benefits and challenges of globalization. He highlights how global trade and investment can lead to increased efficiency and innovation but also acknowledges the potential downsides, such as economic vulnerability and job displacement in certain industries. 5. Behavioral Economics: Departing from the traditional assumption of rational self-interest, Wheelan delves into behavioral economics, which examines how psychological factors can influence economic decisions. This section is particularly engaging as it connects economic theory with real human behavior, offering a more nuanced view of economic decision-making. 6. Income Inequality: The book also tackles the contentious issue of income inequality, examining its causes and implications. Wheelan discusses how economic policies can impact wealth distribution and highlights the importance of education and human capital in addressing economic disparities. Writing Style and Accessibility Wheelan’s writing is both engaging and educational. He avoids technical jargon and uses everyday language, making complex economic concepts accessible to readers without a background in economics. His use of humor and relatable analogies helps to maintain the reader’s interest and enhances understanding. Strengths • Clarity and Simplicity: Wheelan’s ability to explain intricate economic concepts in simple, clear terms is a significant strength. This makes the book an excellent resource for those new to economics. • Relevance: By linking theoretical concepts to real-world issues, Wheelan demonstrates the practical importance of economics, making the subject matter relevant and engaging. • Balanced View: The author presents a balanced perspective, acknowledging both the strengths and limitations of market economies and the role of government intervention. Conclusion “Naked Economics” is an outstanding primer on economics, offering valuable insights in an accessible and entertaining manner. Charles Wheelan effectively strips down the complexities of economics, making it approachable for a wide audience. Whether you are a student, a professional, or simply someone interested in understanding the economic forces that shape our world, this book provides a solid foundation and a thoughtful perspective on the “dismal science.”

This is the first book that I read about Economics and I was surprised by all the things that it covered and how well explained were they, Charles Wheelan tried to create a book so even the person without the slightest knowledge of economics could read it and understand it, and as Burton Malkiel Said If I had wanted to write a book about Introduction to Economics, this is the book I'd have written. The first chapters cover the nature of markets and how is it possible to have so much organizations in a decentralized economy, it's about satisfying consumer goods, there's a great story about a Soviet Commander who once entered an American Pharmacy and amazed by all the quantity of the stuff asked the pharmacist, impressing, but how does the goverment manages to supply all of this things to all the pharmacies, like they did in the USSR, the answer was, they don't, there's not a law that indicates which things a pharmacy must have yet they all have almost the same kind of things, read the book to get the rest of the info on that and much more, believe it or not, interesting and enjoyable stories. He goes on to talk about How the financial system crashed by explaining how the financial system works and how the goverment did things it wasn't supposed to do, what the goverment can do and what it can't as opposed to the extremists who either want to get rid of the goverment completely or want it to control every aspect of our lives with detailed yet easy to understand explanaitions. Lastly and one of my favorite parts as I live in a developing country is the part about International Trade and Development Economics, he goes on to explain that globalization is not as bad as the anti globalization protesters want you to believe or as they believe, he also tackles the asian sweatshops problem and how closing them would cause much more damage to the workers because capitalism is about choices and if they had a better working opportunity they as rational individuals would take it, but they don't because there are no better oportunities, obviously it has much more background than that, I just hope everyone read the book so we could unite to support the policies that help us all and stop the unrational prejudicing about things that benefit us all like Globalization and Free Trade.

A really hilarious read. In the process of reading this book opens your eyes to how capitalism really works.

This is an excellent introduction to economics and the broad range of issues informed by economics for the non-professional but interested reader. It is clear and accessible and punctuated by a breezy, witty style, and without a single equation or graph for those terrified of numerical relationships. The economics presented in this book is mainstream economics as befitting a journalist for The Economist and makes points that would satisfy those right-of-center and those left-of-center. For conservatives, the author reminds us (like Milton Friedman did in "Capitalism and Freedom") that a heavily regimented economy would eventually come at a steep price in curtailed political / civil freedoms just to maintain the economic regimentation. In addition, the physical and human capital underlying productivity growth, and the economic self-interest that drives their application, are key components of economic well-being. On the other hand, liberals will appreciate his contention that government is a crucial catalyst for effective market functioning in that it provides (or can provide) a legal framework, a predictable regulatory regime, and a stable macroeconomic environment. Most of the national economic failures to which the author alludes are not the result of racial, ethnic, institutional, or cultural deficiencies but are simply a result of government incompetence and corruption (see Zimbabwe). And markets are not omniscient; we get the standard analysis for market prices not reflecting social costs / benefits (externalities) and the market's failure to produce public goods. What I also liked about this volume was the way in which it extended economic analysis to many areas of social / human behavior, but then would go no further, i.e., the author recognizes that economic analysis informs much of our public policy debates but cannot settle value-laden issues. For example, in his chapter on "Productivity and Human Capital", subtitled "Why is Bill Gates so much richer than you", he acknowledges that economics can tell us about the production of income and the creation of wealth, but can't really tell us how that income and wealth should be distributed. (Some prominent economists are on record as claiming that distribution issues are irrelevant.) This book maintains that these value-oriented issues are determined in the political process as shaped by our religious, moral, and cultural backgrounds. I enjoyed this book very much. But I would challenge the author on two points: (1) He asserts that social security is a "pyramid scheme." While pay-as-you-go financing may superficially resemble a pyramid scheme, there are fundamental differences that any actuary at the SSA could tell you. Pyramid schemes are inherently unsustainable because of the geometric progression of the pool of investors. A pay-as-you-go system does not require increasing multiples of later-round investors but simply a stable relationship between workers and beneficiaries. Long-term economic growth and population growth would contribute to its sustainability. Our current problems refer to the demographic "bulge" of the baby-boomers which should disappear with their passing, (2) With regard to intellectual property (IP) the author (no surprise) comes down strongly for long-term protection for IP as an inducement to its creation, as opposed to less stringent protection that encourages the dissemination and use of IP. Obviously, there's a trade-off between creation and dissemination, but the current stress on protection may inhibit economic growth and innovation. How many firms pay (or refuse to pay and thus not use the IP) royalties for the use of "patents" that many would consider belong in the public domain? Do we really need copyright protection for 70 years after the author's death? Just one man's opinion.

There are differences of opinion on any subject or point of discussion you can think of. No one agrees on everything. This book is an example of where that rule doesn't make any sense to me. Anyone with any interest in economics whatsoever would be very hard pressed to find a better, more concise yet thorough, introduction to the entire field of Economics than this book. I have been studying economics a while now. Most self-directed study entails lots of information from disembodied sources, aggregating to an adequate, but incomplete understanding. I have bought 40 books in the last few months, at least half on Economics, and when this book arrived, I stopped everything until this one was finished. Anyone who desires to be able to take part in any discussion, argument, debate, or interaction of any kind with their friends or colleagues, or just wants to understand what the papers mean when they say "Interest rates drop" or your buddy says to you "The Fed is printing money and it's tanking the country" would be perfectly equipped after reading this. You'll have a better understanding of Economics, supply and demand, public finance, and even government, than 95% of the population with the information contained in here. It is very informative, interesting, and even witty, clever and sometimes downright funny. He turns the study of Economics into an interesting narrative that is actually a job to read. If you want to understand half of all political discussions for the rest of your life (The other half being social policy, not covered here), and never be at a loss in a discussion again, there are more advanced sources on the subject; however, pragmatically, this is really all you need. Buy this.

This book was a real page turner, which is not something you can say about too many books on economics. This book is a great concept book. It's non technical and written for the layman who is just trying to understand what is going on in the world when it comes to economics and public policy. If you read this book, I feel you'll walk away with a solid understanding about issues about production, wealth, trade, taxes, inflation, job creation, monetary policy, debt/deficit spending, and how all these things interrelate, especially in regard to how public policy is shaped. What is especially great about this book is that it deals with modern issues that we as a country have faced in America since the Great Depression, all the way up to the housing crisis. It may just skim the surface of these issues. But it shows how economics, although an imperfect science, impacts real life. My only complaint about the book is that the author seems rather fond of quoting studies done by "Nobel prize" winning economists. As if that adds more "authority" to the insights these people have had. It gets a little annoying. I also wish he would shown more critical thinking around the housing crisis. He pretty much was a fan of the bailouts, as awful as they were. Not every economist would agree with his take on how these things were handled. But be that as it may, this book shows you how our world works, and what the thinking behind a lot of brilliant economists over the years has been. Highly recommended.