With the Inflation rate soaring, gas prices at historic high levels, food prices going up, and the value of the U.S. dollar shrinking James Otteson’s book arrives at a propitious time to bring understanding of the economic mess we’re in.
It all goes back to Supply and Demand. Otteson notes that when Supply is low and Demand is high, prices rise. We’re seeing that phenomenon with housing. The U.S. needs to build 2 million more houses to meet Demand. But, until then, people will show up with hundreds of thousands in cash (where are they getting it?) and buying houses while those potential buyers with contingencies lose out. There are plenty of bidding wars for houses. All the houses on our street sell within a couple of days, usually for more than the Asking Price.
Of course this state of affairs extends to rental properties, business properties , and government properties. Prices are going up there, too.
Biden’s releasing a million barrels a day from the U.S. Strategic Oil Reserve might affect gas prices slightly. But the U.S. uses 20 million barrels a day so that’s just a drop in the bucket. A decade ago it would have been smart to invest in alternative energy sources…but we didn’t do that much.
The problems with the Supply Chain only exacerbated the Inflation problem. People accumulated a lot of cash during the Pandemic so when restrictions and mandates were lifted, they wanted to spend the money. Only, many of the items they wanted were in short supply. Prices went up.
How are you dealing with the economic crisis? GRADE: A
TABLE OF CONTENTS:
Preface xi
Introduction: Why Care About Economics? 1
Why Trust Economics? 3
Plan of the Work 8
1. Wealth Is Positive-Sum 14
Introduction 14
Be Positive 15
Be Moral 19
Cui Bono? 21
The Story of Humanity’s Wealth 28
The Rich and the Poor 31
Hoarding 37
The Labor Theory of Value 43
Trickling Down? 50
Who Benefits Most? 57
Conclusion 61
2. Good Is Not Good Enough 63
Introduction 63
Be Rational 67
The Broken Window 72
Public Works 76
Be Local 78
Medicine on Mars 88
Tradeoffs 93
Conclusion 95
3. There Is No Great Mind 98
Introduction 98
Experts and Expert Knowledge 100
Planning 111
Motorcycles and Rationality 116
Conclusion 119
4. Progress Is Not Inevitable 121
Introduction 121
Culture, then Institutions 123
Moral Attitudes and Culture 129
The Undead Great Mind 137
Conclusion 144
5. Economics and/or Morality 146
Introduction 146
People Over Profit 148
Selfishness and Cooperation 160
Interdependence, Not Dependence 166
From Enemies to Opportunities 170
The Morality of Economics 178
Conclusion 184
6. Equality of What? 187
Introduction 187
Equality of Wealth? 188
Leveling 193
Be Yourself 196
An Equality Worth Defending 203
Conclusion 206
7. Markets Are Not Perfect 208
Introduction 208
Collective Action Problems 211
Inequality Redux 220
Exploitation 226
Conclusion 240
Conclusion: The World and I 242
Introduction 242
Your Right to Say No 245
You’re Right to Say No 253
Be Private 255
A Fallacy? 263
Value Pluralism 264
Conclusion 267
Postscript 270
References and Further Reading 273
Acknowledgments 295
Index 297
