The "Economist" Economics (Economist Books)

Two key ratios drive this point home. First, the ratio of trade to world output today is less than it was a century ago. That is, while output has expanded astronomically, the amount of trade between countries is less. Second, the amount of human migration--those economic agents out seeking a better life--is again less today than it was 100 years ago. The book explains these seemingly paradoxical factors. The culprit is government intervention in the form of, for example, trade barriers and migration restrictions. Another fascinating concept is that despite all the huge investment in computers, productivity gains have not yet occurred. The apparent answer is just to wait. The advent of electricity took 40 years to take hold.

The main themes of the first section include globalisation, popular myths and economic facts, technology, the pull between governments and markets and the role of the government in the future and the outcome of the East Asian economies. The second section of the book is devoted to the misuse of economic thinking. Any ageing economist will remember the topics from his or her university days; for those who did not read economics, the book provides an easy-to-read summary of mainstream economic thought.

Economics is richly filled, but not overburdened, with well-chosen statistics. Each article stands alone and the entire book will cause readers to consider today's key economic events in a new light. --Bruce McWilliams