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Monday, October 30, 2017

Book Review: Essentials of Economic Theory: As Applied to Modern Problems of Industry and Public Policy

If your in the mood to read an in-depth analysis of economics and enjoy the detailed discussion of wealth, land, population, capital, transportation interest and rail roads you should pick up a copy of the Essentials of Economic Theory by John Bates Clark published in 1907. It will teach about the fundamentals of economics from a neoclassical perspective.

By the time you finish this book you will understand the bigger picture of how large scale economic systems work.

Neoclassical, or Orthodox Economics, relates to the belief that people are rational in their choices. When given alternatives people will naturally pick the best choice. New products with new features and scarcity will be worth more than older products with high supply.

I wish I could say all people are rational but this isn't always the case. Much of our choices are based in our personal beliefs, available information, and limited options.

The book outlines so many fundamental concepts that economic students were required to read this book as standard curriculum. That is no longer the case, and while much of the information provided has lost some of its relevancy the majority of ideas holds true as much today as it did then.

You will likely fall asleep a few times reading this book. It is extremely long winded and 550+ pages of in depth analysis. The advantage is that by the time you complete you have a fairly descent understanding of basic classical economic theory.

The one big lesson is that every component of the system is influenced by other factors. When you adjust, supply-demand, labor costs, etc. it makes its way throughout the entire system.

You can read the book for free Free-Essentials of Economic Theory

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