September 06, 2014
The overall main objective of the book is to teach a novice the basic principles of economics. The author gracefully laces the words into the book in such a manner that someone with very little knowledge in the subject can easily decipher it. The author’s main purpose is to brush an all-encompassing stroke across a canvas showing the reader the basic philosophies that apply to economics. Most authors build into their main points and display the one main idea at the end of the text. This author illustrations his main idea in a similar manner by showing the key elements of economics and uses them to influence the reader to make intelligent personal and political decisions.
This book begins with the rudimentary elements of economics. It explains the basic interpretations of cost verses benefits. It moves on to explain the phrase Gwartney (2010) “there is no such thing as a free lunch” pg 22 This phrase has to deal with the fact that nothing in life is free. An expense has occurred and someone will eventually foot the bill. 1
The book then moves on to explain the cost and benefit marginal decisions. Which is also studied in the textbook as it pertains to determining health care benefits. The book describes the decision making process that everyone makes when making a decision to buy a good. It goes on to describe that almost every situation has some kind of cost benefit analyses.
Another main idea of the key elements of economics is that people earn income by helping others. This stuck out for me because I feel the same way. Often people complain about their pay and how others such as football player are paid such an extreme amount. Is the football players not talked about daily within our society? Almost everyone in America likes football and those that play it professionally earn the amount that they earn. They earn their pay by keeping Americans entertained.
Lastly, in the Key Elements of Economics is the secondary effects of an action. Every action will have a reaction from the action that is put into place. Just like newton’s third law of motion. (2014) “For every action, there is an equal and opposite reaction.” Every time something is done within an economy, there will be a secondary effect of that action.
After explaining the rudimentary elements of economics the book then moves on to explain the major sources of economic progression. For the most part the progression of economics depends on the government in which the economic process resides in. A free market strives on a free government, which allows its markets of goods to flow freely. The book describes the free market as the best one available as long as it is under the rule of law. This way the inventions can grow according to their need within the market.
The book describes private ownership as the foundation of economic progression. Just as the textbook describes Barr, Nicholas (2012) “private ownership of cars and computers is more widespread in better-off countries.” pg45 Private ownership influences the economic process in ways that keep increasing of progression.
Then the book seems to take a turn citing competitive markets as the most freeing economic theory. Competition makes the market increase, by given incentives to those who invent better products. Without competitive markets, Henry Ford would have never invented the assembly line.
The book then moves on to discuss government regulations and how they influence competitive markets. This is the meat of the book when it pertains to the class. The economy depends on the political process to continue to increase its progression. Political action can limit a market tremendously or guide the market in a manner that will influence one’s own political agenda. Additionally, economics depends on the rule of law to flow and maintain a free trade.