I pursue the fields of English and Economics in my career because I think those two fields lend enormous insight into humanity. I always tell students, if you want to study how people think the world functions, major in English. If you want to study the way the world actually functions, major in Economics. I get a lot of joy from constantly seeing how those two viewpoints come into conflict with one another.
That said, there are very few books that I consider to be a “must read” for young people, but this is one of them. Economist and author John Tamny’s new book, Popular Economics: What the Rolling Stones, Downton Abbey, and LeBron James can teach you about Economics, is an excellent examination of common economics topics that dispels many of the myths that float around television broadcasts and college classrooms today.
Tamny, also a senior editor at Forbes magazine, offers clear and factual arguments for a variety of hot-button issues. He explains the reasoning why a stable dollar tied to a gold standard is perhaps the best indicator of a healthy economy. After all, if a foot were measured as twelve inches one day and only six the next, how would we ever know how tall anything is? He uses the basketball career of LeBron James to explain the law of comparative advantage and dismantles the misguided belief in being wary of trade deficits. He describes how the incessant call for “more regulation” will never prevent any crisis because regulators simply aren’t smart enough. It is like having the dumbest kids in the class grade the smartest kids’ papers. If they were so smart, they would actually be doing the work. And he tells the story of how the Rolling Stones left Europe’s punishing tax policies to produce some of their greatest music in America. American workers (and record buyers) were the ultimate winners, thanks to the iconic rock band’s very smart decision to flee high taxes.
Perhaps his most interesting arguments—and most difficult to swallow for the uninitiated—are those defending wealth inequality. What many don’t understand, he writes, is that the rest of us need rich people. When there are fewer of them, we are all worse off. The reason, he explains, is that when government takes away large portions of wealth through taxation, that is money that doesn’t get circulated into the economy—it gets used up by inefficient bureaucrats instead. When people get to keep their own money, that money gets invested in the stock market, retirement accounts, or in normal bank savings. Those investments get handed out to us when we go apply for a car loan or a small business loan or a college loan. When a bank can’t lend a rich person’s savings out to you and me, we are poorer. We can’t do all the things we want to do to improve our lives. Long story short: government needs to stop stealing from rich people. We regular people are the ones most hurt by it.
The best thing about Tamny’s work is that he does not play political favorites. He praises Republicans like Ronald Reagan and Calvin Coolidge for their stable monetary and non-interventionist policies, respectively, but slams other Republicans like George W. Bush, Richard Nixon, and Herbert Hoover. He gives credit to Democrat Bill Clinton, but he rips Democrat Franklin Roosevelt. Economics, according to Tamny, is not about politics; it’s about individuals making free choices. And the more free choices that we can make—with our money and with our lives—the better off we all will be.
If you are a young person, or someone who teaches young people, I strongly recommend this book. Tamny’s book will help you see the world much more clearly, and his style is fun and accessible. You can’t ask for much more from a non-fiction book. Go check it out!
That said, there are very few books that I consider to be a “must read” for young people, but this is one of them. Economist and author John Tamny’s new book, Popular Economics: What the Rolling Stones, Downton Abbey, and LeBron James can teach you about Economics, is an excellent examination of common economics topics that dispels many of the myths that float around television broadcasts and college classrooms today.
Tamny, also a senior editor at Forbes magazine, offers clear and factual arguments for a variety of hot-button issues. He explains the reasoning why a stable dollar tied to a gold standard is perhaps the best indicator of a healthy economy. After all, if a foot were measured as twelve inches one day and only six the next, how would we ever know how tall anything is? He uses the basketball career of LeBron James to explain the law of comparative advantage and dismantles the misguided belief in being wary of trade deficits. He describes how the incessant call for “more regulation” will never prevent any crisis because regulators simply aren’t smart enough. It is like having the dumbest kids in the class grade the smartest kids’ papers. If they were so smart, they would actually be doing the work. And he tells the story of how the Rolling Stones left Europe’s punishing tax policies to produce some of their greatest music in America. American workers (and record buyers) were the ultimate winners, thanks to the iconic rock band’s very smart decision to flee high taxes.
Perhaps his most interesting arguments—and most difficult to swallow for the uninitiated—are those defending wealth inequality. What many don’t understand, he writes, is that the rest of us need rich people. When there are fewer of them, we are all worse off. The reason, he explains, is that when government takes away large portions of wealth through taxation, that is money that doesn’t get circulated into the economy—it gets used up by inefficient bureaucrats instead. When people get to keep their own money, that money gets invested in the stock market, retirement accounts, or in normal bank savings. Those investments get handed out to us when we go apply for a car loan or a small business loan or a college loan. When a bank can’t lend a rich person’s savings out to you and me, we are poorer. We can’t do all the things we want to do to improve our lives. Long story short: government needs to stop stealing from rich people. We regular people are the ones most hurt by it.
The best thing about Tamny’s work is that he does not play political favorites. He praises Republicans like Ronald Reagan and Calvin Coolidge for their stable monetary and non-interventionist policies, respectively, but slams other Republicans like George W. Bush, Richard Nixon, and Herbert Hoover. He gives credit to Democrat Bill Clinton, but he rips Democrat Franklin Roosevelt. Economics, according to Tamny, is not about politics; it’s about individuals making free choices. And the more free choices that we can make—with our money and with our lives—the better off we all will be.
If you are a young person, or someone who teaches young people, I strongly recommend this book. Tamny’s book will help you see the world much more clearly, and his style is fun and accessible. You can’t ask for much more from a non-fiction book. Go check it out!