5 comments about Game Theory: Analysis of Conflict.

1. This book is not good only because it explains all well known difficult concepts which noone so far has been able to explain clearly and rigourosly in one book but for new important topics that are less known for the majority of game theorists. I'm refering to the idea of networks and cooperation structures and also cooperation under uncertainty with the idea of virtual utility.



2. very comprehensive book. Covers pretty much everything. It's supposed to be a graduate text but undergrads can handle it as long as they know some math and aren't too scared by all the notation. Oh and Myerson is nice guy too.



3. This book is a masterpiece: it goes from the simple and straightforward (with examples of sequential equilibria) to technical and challenging material (such as the Mertens-Zamir type space). I own Fudenberg-Tirole and Osborne-Rubinstein, but it is Myerson that gets picked up the most. What I find most rewarding is that Myerson introduces everything gently, working from examples to build a general theory.



4. excellent book,very comprehensive step by step approach.I especially enjoyed the sections on Nash equilibria and infinite strategies.Great for those who wish to understand the underlying foundations of decision making via both simple and intricate mathematics. The concepts are also explained well in english through generally understood examples.



5. Even though Myerson asserts that this book is intended to be "a general introduction to game theory" in Preface, it is difficult to understand for beginners who have not mathematics knowledge in the level of upper class. In this point, the volume is different from other introductions - e.g. Morton Davis' "Game Theory"-, rather is suitable for M.A. or first year Ph.D students. However, this book is not so much for students majoring economics as for various social sceintists in the sense that it does not focus on only "economics" but on pure game "theory" in nearly all areas.

5 comments about The Austrian Theory of the Trade Cycle and Other Essays.

1. At last! An anthology from one of the most important schools of libertarian economics in a portable form! This book can be easily incorporated into a course on economics or banking.
   And yet, "The Austrian Theory of the Trade Cycle" is a narrowly useful tool. It's like a tire gauge, that means everything when there's a problem with the tire, but tells nothing about gas or oil levels. I see few times when the average production supervisor, Sunday-school teacher or working mom would have occasion to read it.
   In the introduction, Roger Garrison spells out the differences between the Austrian School and other movements in free-market economics. The Austrian School emphasizes the role of time in decision making. To think of an example, Joe wants to buy a car now that the interest rates are low. But if the interest rates are high, he'll put his money in the bank and wait a year until he replaces the family car.
   Ludwig von Mises' essay, which lends its name to the book, reveals the international character of the Austrian School. The essay was translated out of the French, points back to the British Currency School, and alludes to the contribution of Knut Wicksell from Sweden. This theory was, nevertheless, developed by Austrians, beginning with Carl Menger. References to the University of Chicago and to the Ludwig von Mises Institute in Auburn, Alabama, bring the movement to a home in America.
   The key point is that a boom produced and prolonged by easy bank money with government support will sooner or later contract into a bust when the easy money turns hard. Just ask any farmer who bought machinery on credit years ago, when inflation was rampant.
   Gottfried Haberler demonstrates that economics is, in fact, difficult to reduce to mathematics. He points to how money is needed at different times as a product moves out of the ground through its production phases to the end user.
   In contrast, Murray Rothbard tells us with sparkling satire why we no longer have "panics" and "depressions." He also gives insight on how a change in time preference changes interest rates; interest rates fall if enough buyers become savers.
   Friedrich Hayek points to an insidious effect of inflation. Not is it more fun to be a debtor on a fixed-rate loan when inflation is high, but taxable profits are much higher than the profits are worth in reality. Easy money gives rise to inflation.
   Roger Garrison finally draws a couple of price/quantity graphs in his summary, savings/investment graphs to be specific. Money created by the government has the same short-term effect as a genuine increase in savings, but genuine savings are lower because savers are coolly greeted by lower interest rates for their hard-earned money. The bust after the boom is a real let-down.
   With my MBA from Campbell, this material is clearer and livelier to me than it would be to the man on the street.



2. A lovely succinct account from four towers in a tradition of economics that is widely represented in the financial markets. Roger Garrison - himself a leading light in modern times - leads off with a brief overview. The nice thing is that Garrison manages to get it all across without resorting to waffle - another Austrian tradition.

   In fact, in my view, Garrison is the star of this review since his ability to keep it simple is a tremendous asset. Anyone familiar with the dark mutterings of academics in Austrian academic journals will know exactly what I'm talking about.
   
   Aside from Garrison, the pieces by Rothbard and Harberler are the best since they tackle the central issue of Trade Cycle theory - that any system run by central bankers is inherently unstable since their tinkering with interest rates leads directly to the business cycle. Much better to have a competitive banking system without a central bank and a curency tied to gold. That way credit expansions will never be explosive. Of course, what they don't tell you is that their proposals are inherently deflationary and force deficit countries to do all adjustment when they experience balance of payments problems.

   Rothbard's piece sets out the mechanics of the Trade Cycle especially well and everyone should be able to understand what he's getting at without too much difficulty. It's no more difficult than the average economics course on an MBA programme. That's hardly difficult, is it?

   Readers wishing to understand the micro-economics of the Austrian school should also check out some of the recent publications of one Israel Kirzner.




3. This is a very insightful collection of essays from many of the leading "Austrian School" trade economists. They run from essays in the 30s aimed at countering the wave of post-depression social planning to essays in the 70s arguing against Keynesian economics. The key economic insight across the essays is the temportal nature of the Austrian view of business cycles. An artificially low interest rate (mandated by banks or the central government) increases investment in primary goods. Before the capacity can be deployed, there's an increase in wages, which causes inflation in end products. The only end is a return to sounder money (the gold standard) and a cut back of the credit. The reader could easily extrapolate the market conditions described in the book to the current situation. As for the solution - it hasn't been tried, and unlike the symptoms of the problem (which have had empirical support), nobody knows if a switch to the gold standard will really solve the problem. Either way, the economics described are thought provoking, and worth a look. It is also timely given Ron Paul's support of these policies.
   
   This recommendation does come with a few caveats... Know what you're getting into. This isn't a "Cover all" for Austrian theory. It's a series of essays, none of which can get into tremendous detail. That said, it's very deep. Even for the initiated, much of the book requires multiple reading to critically understand what's going on. Lastly, like most Austrian works, it is heavier on analysis than empirical data.
   
   In all, it is worth the read to help the reader understand an important view of business cycles.



4. Short and concise essay describing the real economic process and why business cycle occurs, contrary to unsatisfactory explanation by Keynesian economics. Recommended to read if you are interested in economics.



5. I'm pretty ignorant concerning economics, so much of this went over my head, but I think it might be about the simplest and most introductory view of the Austrian view you're going to get.

5 comments about Greenspan's Fraud: How Two Decades of His Policies Have Undermined the Global Economy.

1. Batra correctly points out that Greenspan is responsible for mishandling monetary policy by continually bailing out the Wall Street investment banking houses,as well as their all to willing commercial bank accomplices following the 1999 repeal of the Glass -Steagall Act, that have been primarily responsible for converting America from an entrepreneurial-enterprise-investment economy to a speculator economy based on manipulating the financial assets and balance sheets of American corporations in order to generate paper profits without production .The result has been that 3 stock market bubbles have been created-one in the 1980's,one in the 1990's,and one in the 2000's.This last bubble is potentially the most dangerous.It has significant similarities with the Great Depression of the 1930's and the Japanese Depression of 1994-2003.
   
   The real question then becomes how responsible was Greenspan ? Batra glosses over the fact that there are three other regulatory players involved besides the Federal Reserve System's Federal Open Market Committee(FOMC),a quasi private,quasi public agency that controls monetary policy.The other 3 regulatory agencies are the Comptroller of the Currency,the Securities and Exchange Commission(SEC),and the Federal Deposit Insurance Corporation(Federal Savings and Loans Insurance Corporation).All of these agencies have failed to enforce basic loan and creditworthiness standards and requirements.Probably the greatest blame can be assigned to the various chairmen of the SEC after Bill Casey.They have all failed egregiously by failing to protect Main Street from the Wall Street bubble makers.None of these bubbles would have had a chance to get going if Casey were still running the SEC.Greenspan can be assigned no more than 25% of the blame. Batra's other criticisms,such as Greenspan's statements on Social Security and its future prospects as the Baby Boomers retire,is not really relevant since Greenspan had no explicit policy making power in this area.



2. Factual and detailed, this book helps people understand just what happened to cause the present downfall of our once great country. I highly recommend this book to all. I also recommend Kotlikoff's book The Generational Storm...another winner with some solid investment advice.



3. This is probably the best book I have read on economics. The authors really simplifies macroeconomics in laymen's terms. I would recommend this to everyone who want to understand why american economy is so weak and will continue to be so unless fundamental changes happen.



4. I have been a fan of Dr. Batra's work for many years, since the Dow-Jones meltdown in 1987. By following his advice and considering his economic arguments carefully, I have managed to avoid all of the financial pitfalls that have wrecked havoc with the nest eggs of many of my fellow Americans. Dr. Batra carefully and clearly deconstructs the myths of supply-side economics to show why it doesn't work and always leads to economic meltdowns. Dr. Batra is able to make accurate predictions about future economic, social and political events because he views economic cycles in conjunction with historical cycles. In Greenspan's Fraud, Dr. Batra discusses Alan Greenspan's family and educational background and delves into his relationship with Ayn Rand, who had a profound effect on him. He also discusses Greenspan's relationship with Milton Friedman , founder of the Chicago School of Economics, who was instrumental in shaping Greenspan's world view. The book, simply put, punctures the image of Greenspan as the Oracle, or the Maestro, to show him for what he really is--a self-serving opportunist.



5. Dr. Batra rightly predicts and analyzes the economic situations. When recently Mr. Greenspan admits that he was mistaken in the subprime mess, it was like one more of Dr. Batra's predictions come true. This book was written a few years back but it rightly analyzed the mistakes or we should rather say blunders committed by Mr. Greenspan

5 comments about The Strategy and Tactics of Pricing: A Guide to Growing More Profitably (4th Edition) (Pie).

1. I have spent over 30 years in computer software sales, pricing, and terms and conditions. This book resonates with me, specifically with it's emphasis on sustained company profitability rather than get rich quick pricing. It's comprehensive, not specialized to any specific product set or industry, and nothing I read failed to make sense to me, based on my experience.
   
   If you are interested in this topic, there is no better work I know of to give you both practical and good theoretical advice.



2. This book is one of the best in pricing. It is used as a textbook in business schools and highly recommended by consultants.
   Unfortunately, it took 10 days to arrive using standard shipping.



3. I updated from the 2nd edition I bought years ago. I'm glad to see the focus on value-based pricing. I was a little disappointed that it gets a bit repetitive on calculating price changes and it would be useful to see more examples on calculating the initial price when you really don't have much data to go on.



4. If you are an enterpreneur and you want to know how to price your product, don't look any further this is the book you are looking for. The chapter about costs has an MBA level and it will give you a lot of good ideas of how to improve your busines operation.



5. Very hard to read - boring and not very concise. I had to purchase this for my class. Would not recommend this to anyone

5 comments about The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor.

1. Landes is the man, and this book pretty much sums it up. His primary thesis, that when humans are given the freedom to be innovative and pursue their own interest, is familiar from Adam Smith, but Landes does it better, it's a convincing argument. Culture is the determining factor in the success and failure of nations, not chance, not geography, not even resources, and Landes makes it obvious, it seems.



2. A good and informative read, more so, the second time around. Landes, raises many excellent points for debate between socio-economics and cultural influences of peoples and their leaders, more ofter imposed upon them, as opposed to chosen to lead.
   
   The book chosen for an economics class just finished at Lund University, Lunds, Sweden. As, a retired American ex-patriot with a background in international finance, still interested in learning, this book is highly recommended for anyone seeking to gain a better understanding on the question "how did we get to where we are?" And divides the world's peoples into three catagories: those that spend billions yearly on losing weight; those that eat to live; and, those who don't know where their next meal is coming from! That our wealth (the West) is dependent on others less fortunate. What they can't make, they will take! That wealth is, in and of itself, a magnet for exporting of commodities or products, but when all else fails or is denied -- people (migration) will be the end product that swamps the west.
   
   We'd better wake-up and understand our need to declare World War III, not nation on nation, region on region, or religion against another religion, but a unified "War on Poverty" led by the west.



3. Landes provides an interesting and credible explanation of the differences in income/capita (now about 400:1, about 5:1 250 years ago) between the richest and poorest nations. En route, Landes also provides a useful perspective on today's globalization debate.
   
   Most of the differential is attributable to cultural values. Some, however, is geographical. If one marks off a belt a couple thousand miles in width circling the earth at the equator, one finds within it no developed countries. Year-round heat encourages proliferation of disease and parasites. Poor soils and extreme dry areas are added problems, as well as the debilitating heat's effect on workers.
   
   From about 750-1100, Islamic science and technology far surpassed those in Europe - then something went wrong and science became denounced as heresy by religious zealots. Similarly, state control allowed Chinese innovations to fall into disuse. China's flotillas far surpassed Europe's. The biggest ships were about 400' long and 160' wide (Columbus' Santa Maria was about 85' long), and the fleet totaled 317 vessels and 28,000 men. Then new leadership brought an emphasis on agriculture and all ocean-going ships were destroyed in 1525.
   
   Europe enjoyed a monopoly on corrective lenses for 3-400 years, beginning in the 1300s, more than doubling the availability of skilled craftsmen and allowing the further development of microscopes and telescopes around 1600.
   
   Cotton from India proved capable of multiple washings (vs. wool), thereby transforming standards of cleanliness and health.
   
   "Easy money" (eg. gold from Spanish colonies, Holland's discovery of North Sea natural gas) makes for a lazy economy that fails to develop the talents of its people.
   
   The Protestant Reformation gave a big boost to literacy, and spawned dissents that are at the heart of scientific endeavor. Data show a much greater percentage of scientists from Protestant vs. Catholic backgrounds. Unfortunately, after Luther, cleanliness became a particular cause for suspicion of heresy, and smuggling non-approved books led to the death penalty. Thus, the fate of Catholic southern Europe was sealed for 300-some years. Sicily also suffered from intolerance and superstition of Jews, forced them out, and imposed a backwardness in trade on itself.
   
   Landes then goes on to ask "Why did the Industrial Revolution occur in England?" Protestants were persecuted and expelled from France. Weavers from the southern Netherlands sought refuge in England and brought trade secrets with them, while Jews from Spanish persecutions brought networks of trade connections. England also had a much better system of roads, along with an emphasis on transport speed and time in general. Meanwhile, France was undergoing the upheaval of the French Revolution, India's craftsmen avoided using iron and steel (had made no progress in scientific knowledge for centuries), while Russia was hobbled by serfdom's tying peasants to the land to do forced labor. China and Japan had walled themselves off from the rest of the world - in fact, China lost many of its early innovations through disuse.
   
   Another problem for Russia was that serfdom left so much wealth in the hands of the nobility that overall consumer demand was limited. Russia's poor industry was only able to produce inferior rifles, resulting in enormous losses in the Crimean War (1854-56), the war with Japan (1904-05), and WWI. Finally, the Baltic states remained poor because they were tangled in an endless struggle for freedom.
   
   Regardless, once started, the Industrial Revolution proved difficult to copy because division of labor complicated industrial espionage. Across the Atlantic, scarcity of labor in the early U.S. led to high wages and a push for innovation. Thus, European devices were copied and imported, and skilled European craftsmen encouraged to move to high American wages. (Side Note: By the time of the Civil War, firearms production in the North vs. Confederacy was 32:1 due to the South's emphasis on agriculture.)
   
   The Spanish in South America kept Protestants and Jews out; independence came not because of the settlers' strength, rather Spain's weakness. Spain also brought a macho society attitude that adulthood brought males complete independence and idleness; South American immigrants were also less educated than those in North America and the immense landownings lent themselves to simple ranching enterprises. (American immigrants created a squatters' rights culture, with small landownings and a high motivation for self-sufficiency.)
   
   China and Japan both resisted foreigners; the latter persecuted Christians and their converts after being told these groups were part of Spain's control mechanism. Following a period of anti-foreigners, Japan committed to learning from and copying the U.S. and Europe. (The Chinese did also, but much, much later.)
   
   Muslims (Ottoman Empire) cut themselves off from the mainstream of knowledge via banning the printing press - had a problem with a printed Koran. Another major limiter was their diminishment of women. (The Japanese did also, but to a much more limited extent - eg. girls were well educated, they worked until married, and continued to work afterwards if their income was needed.)
   
   The Japanese realized they lost WWII because of greater U.S. industrial output. Landed attributes this to their support for a large, exporting auto industry - American occupiers saw no need for such an industry (comparative disadvantage). Japan's auto producing disadvantages (small market, lag in technology) were turned into advantages through the Toyota Production System.
   
   Landes points out that today's comparative advantage rationality can easily become tomorrow's mistake. His example is Germany - the British economist John Bowring lamented that the foolish Germans wanted to make iron and steel instead of sticking to wheat and rye and buying their manufactures from Britain. Had they heeded him, they would have pleased the economists and ended up a lot poorer. Similarly, the Japanese.
   
   Bottom Line: The most successful cures for poverty come from within. Educated, eyes-open optimism pays; pessimism only offers the empty consolation of being right. Gains from trade are unequal. Some activities are more lucrative and productive than others.



4. The historian who hates facts
   
   David Landes' The Wealth and Poverty of Nations is at once an impressive display of scholarship and a mortally flawed analysis of, as the author put the question "why some nations are wealthy and others desperately poor." The reason why I say it is flawed is not because I disagree with the main thesis - that attitudes towards innovation and openness to new ideas determine wealth - but rather that the way this thesis is argued is completely a-scientific, if not anti-scientific. In particular, David Landes' contempt for quantifiable facts, banishes the book from the land of scientific inquiry to the land of pure ideology.
   
   Historians who despise facts are nothing new. Marxist historians insisted for half a century, even in the face of the highest economic growth rates seen in human history, that the internal contradictions of capitalism were dragging it to its grave. Professor Landes' contempt for numbers, though, is much more damning than that of the Marxist historians. While they based their analysis exclusively on Marxist theory, and thus had no problem trumpeting their contempt for "bourgeois statistics," he stakes his analysis on the same facts he disparages throughout the book. The Wealth and Poverty of Nations is one long account of experiences of economic growth (or lack thereof) of various nations and thus one would expect it to be empirical.
   
   Professor Landes' disdain for numbers that do not agree with his theory is a recurrent theme throughout the book. It begins with an affirmation that Western Europe is the best place for agriculture because it receives more rainfall than any other area that flies in the face both of rainfall data and agricultural production data. Professor Landes seems especially disgusted by cliometrics. Now cliometrics is one of the most interesting developments in historical analysis. It is the application of the best and most sophisticated statistical methodologies to historical facts in order to shed new light upon historical process than is possible with the paltry pre-existing data. It is, of course, imperfect and cliometricians argue amongst themselves over many of their findings. However, cliometrics is one of the most interesting developments of historical inquiry, showing many pre-existing interpretations to be incoherent with the facts.
   
   When confronted with cliometrical evidence, instead of judging his thesis against this historical evidence, Professor Landes chooses instead to disqualify it, behaving exactly like the Marxist historians he (rightly) criticizes. One passage is particularly illustrating:
   
   "Some historians would argue that these strangers saw and understood less than they thought, or that they blackened the Indian picture by way of brightening the European. A few have even asserted - on the strength of estimates of food intake - that the Indian ryot lived better than the English farm laborer.
   
   Such calorimetric cliometrics seem to me implausible in the light of the gulf between European and Asian techniques. Nor am I persuaded by efforts to project twentieth-century comparative income estimates back to the eighteenth century. The opportunities to distort the result are endless, and the leverage of even a small mistake extended over two hundred years is enormous.
   
   In these speculative exercises, the numbers deserve credence only if they accord with the historical context. That context, for India, was one of limited property rights and technological backwardness. Western Europe, well on its way to the Industrial Revolution, was inventing and improving ingenious, labor-saving devices, in particular, both hand- and power-driven machines. It had long since passed Asia by. It's as simple as that: more productive techniques translate into higher incomes."
   (page 165 of the paperback edition)
   
   The numbers deserve credence only if they accord with the historical context. In other words: My analysis is, by hypothesis, correct. Therefore, any evidence to the contrary must be wrong. Dr. Goebbels could not have said it better. No matter that there is a reasonable literature stating that Europe did not have the most productive techniques nor the most complete property rights. (see China Transformed: Historical Change and the Limits of European Experience by R. Bin Wong and The Great Divergence: China, Europe, and the Making of the Modern World Economy by Kenneth Pomeranz). No matter that various stories can, and have been, told in which the economy with the higher wages is not necessarily the one that surges ahead. If it disagrees with me, it is wrong. It's as simple as that.
   
   Mr. Landes' lack of proficiency with numbers is evident even with regard to those that are not at odds with his thinking. For example, when analyzing the war between Paraguay and the Triple Alliance he states that 70% of Paraguay's male population died as a result of the brutality of allied occupation. While the brutality of the occupation is beyond dispute, the number is preposterous. The occupation of Poland for five years by Nazi Germany resulted in 20% reduction of the Polish population. The idea that the Brazilian and Argentinean occupation troops could be 3 ½ more efficient than the Nazi death machine with no concentration camps, machine guns, airplanes or even roads, trucks and railroads for that matter, really makes very little sense. These silly numbers have been re-estimated by more recent historians and cliometricians and have been shown to be much smaller.
   
   Ernest Rutherford is quoted as saying "All science is either empirical or stamp collecting." (actually, he used the word physics, but physics at the time meant empirical). Professor Landes' book is quite an impressive stamp collection, but fatally flawed empirical analysis.



5. We're reading this in my Business in World History class. The book makes me want to stab my eyes out and jump off of a sky scraper. Yay! :)

5 comments about Economics for Real People.

1. The five-star non-review immediately below is written by an employee (Jeffrey Tucker) of the publisher. His non-review may be helpful to prospective buyers but the five-star rating obviously is biased. Since "Economics for Real People" is really a three-star book, I'm providing a one-star non-review just to keep everything in balance.



2. This is a good book for those that already have had a limited exposer to economics, but in no way goes over people's head. I feal Gene Callahan is true to his title with bringing economics to the masses. Its main theme of subjective value is well-explored, and changed how i view decisions that others make.



3. Gene Callahan accomplishes the monumentally difficult task of taking what seems to be "impossible" to outsiders and makes it accessible through his use of excellent examples and word-pictures. (I'm sure the logical positivist, mathematics-based economists will despise the rationalist approach...but let's save that discussion for a few beers and a cigar...).
   
   He builds his discussion, bit by bit, working with the average reader. You don't need to be a pre-PhD to follow what Gene is saying...the old "crawl-walk-run" idea. The sense I had was this was more of a trip where we would go from stop to stop, discussing the concept, then using that to build to the next concept. The great thing is that Callahan doesn't patronize his readers...he expects you're going to work a bit.
   
   Overall, despite my many years of reading Austrian economics texts & pamphlets, I found this back-to-basics approach to be very helpful in bringing my thinking down the stairs of the ivory tower & back onto the streets, making economics the true "beer-and-pizza" description of reality it is (P=MC doesn't taste as good anyway!).



4. A cartoonish and goofy lightweight assemblance of dullwitted alphanumberic characters attempting to relate something which in other hands would be an interesting topic.



5. My interest in Presidential campaigner Ron Paul (on his list of recommended books to read) and ignorance of economics motivated the reading of this text. This is the first of a long line of books I have on my "to read" list to overcome my economic ignorance. Although the text is geared towards Austrian thought, it provides enough angles to introduce different economic theories in simple enough terms. The author's style, packed with clever examples and flowing narrative, was helpful for someone like me who couldn't explain inflation much less define a fiat money system prior to reading this. If you are interested in an introduction to Austrian economics - it's a sure bet.

5 comments about Whatever Happened to Penny Candy? A Fast, Clear, and Fun Explanation of the Economics You Need For Success in Your Career, Business, and Investments (An Uncle Eric Book).

1. This treasure of a book rises to the top amongst the scant Economics courses available for home education. Along with the Bluestocking Guide available to accompany it, Penny Candy provides all that is needed in a high school economics course and spares the reader the unnecessary fillers. Written in the creative format of correspondence letters, all the meaty issues are presented in a highly understandable writing style.
   
   The Bluestocking Guide gives additional writings to amplify the chapters. Questions, essay assignments, and a list of supplemental movies and books make this a thorough and well-rounded course.



2. Good introduction to the value of money; or what government does to decrease the value of money. Written to be accessible to youth and does a good job of putting economic ideas into readable prose.



3. Using LinkedIn I've recently connected with a friend from twenty years ago. We've exchanged some emails and will try to get together when he is back in town. When my friend learned that I had three daughters he recommended several books by Richard J. Maybury. I requested a couple from my library. The first one I got was What Happened To Penny Candy?
   
   What Happened To Penny Candy? is a short book of 80 pages. It is a quick read. The book is structured as a set of letters from "Uncle Eric" to his nephew "Chris." In these letters the book explains the basics of economics. It does a good job. Over the last thirty years I've read dozens, maybe even hundreds, of books on economics. This book does a good job of covering the basics. I even learned a few things. For example I didn't realize that the reason quarters and dimes were lined with the little ridges on the side was to show if little pieces were clipped off the coin.
   
   Richard Maybury, the author, writes from a strong Libertarian viewpoint. He explains why government manipulation causes problems. Someone who feels government is the solution to economic problems will not enjoy this book.
   
   I'll return the book to the library and buy my own copy. I plan to have each of my daughters read this book. It is short enough that they won't fuss too much about having to ready a dry topic. Economics is an important subject, one that I want my daughters to master.



4. We homeschool and are involved in an economics course that we are using this book for. I have a 6th grader and an 8th grader. It's a little over the 12 year olds head but my 14 year old understands it. I am also learning a whole lot. I will be purchasing all of the other titles that he has written. WONDERFUL



5. This book has been perfect for me to understand the current financial situation of the US and nationally. It is easy to understand at all ages and levels of interest. I would recommend everyone read it to prepare for the future.

5 comments about The Fatal Conceit: The Errors of Socialism (The Collected Works of F. A. Hayek).

1. The book came very quickly and was packaged well. Service excellent. Book was in excellent condition, even better than advertised. I appreciate the professional service.



2. To those who have some basic understanding of economics and history Hayek provides one of the greatest apologetic summaries of why market economics work and why socialism does not. To those who profess to love the common man and who suffer with the plight of Africa and other parts of the underdeveloped world there is a lesson to those who will hear it. Proceed with socialism and waste time, money, and lives. Proceed with market economics and with all its cruelties it is kinder by far than socialism. Just look at China, and India verses Russia and Africa.



3. Frederich August Hayek
   
   "If we wish to preserve a free society, it is essential that we recognize that the desirability of a particular object is not sufficient justification for the use of coercion."



4. I first read The Fatal Conceit back in 1991, after reading Hayek's The Road to Serfdom. I reread the book in 2007 while commuting back and forth to California's state capital in my capacity as a state assemblyman. Needless to say, the book's profound critique of socialism means much more to me now as a 45-year-old lawmaker and front row eyewitness to daily attempts to incrementally enact socialism in the Golden State.
   
   The Fatal Conceit's title captures the essence of the socialist/progressive/liberal impulse, born of a feeling of moral and intellectual superiority, to bring order to the free market, and in so ordering, destroy the very thing (capitalism), that allows modern civilization. Hayek writes of socialism in the introduction entitled "Was Socialism a Mistake?":
   
   "...The dispute between the market order and socialism is no less than a matter of survival. To follow socialist morality would destroy much of present humankind and impoverish much of the rest.
   
   "All of this raises an important point about which I wish to be explicit from the outset. Although I attack the presumption of reason on the part of socialists, my argument is in no way directed against reason properly used. By `reason properly used' I mean reason that recognizes its own limitations and, itself taught by reason, faces the implications of the astonishing fact, revealed by economics and biology, that order generated without design can far outstrip plans men consciously contrive..."
   
   What a simple observation of the truth, "...order generated without design can far outstrip plans men consciously contrive..." Capitalism, spontaneously generated through centuries of human interaction, has proven the best way to conduct the economics of mankind. But socialists to try to "improve" upon something that no person invented, and, in so doing, ruin a healthy economy. Hayek admits that capitalism can look bleak to individuals who, through hard luck or laziness, can't make it - but he convincingly argues that helping the poor by enacting socialism out of a moral impulse "...would destroy much of present humankind and impoverish much of the rest."
   
   This brings me to present day California with its burgeoning budget deficit brought on by chronic overspending on social programs twined with a tax regime regarded by The Tax Foundation as the 47th worst business tax climate in America. Very soon this system will collapse. The socialists/progressives/liberals who run the legislature are already proposing more taxes and more social welfare spending. Should California become America's tax dungeon by edging out Rhode Island to claim the worst business climate in the nation, the negative impact on the working class will dwarf all the combined intended good of every social welfare program enacted and yet conceived by the left as the paying jobs of the capitalists flee the state. Gazing at California, Hayek would surely shake his head sadly.
   
   The Fatal Conceit should be required reading for every elected official in America, beginning with California.
   
   Reviewer: Chuck DeVore is a California State Assemblyman, a retired lieutenant colonel in the Army National Guard and the author of "China Attacks."



5. Hayek argues brilliantly that primitive man was never free in the classical liberal sense of the term (and not even in the anarchist sense), but always collectivist (tribal). He could not have survived otherwise. He goes on to argue that man had developed instincts that facilitated the successful coordination of small groups. We see it today in extended families, characteristics that we know as altruism and group solidarity. However, modern civilization is not a tribal organization that can survive on these instinctual drives. Hayek used the term "the extended order of human cooperation" to distinguish man's modern civilization from his primitive existence in the tribal setting.
   
   Hayek emphasizes that what truly differentiates man from animals is not our biology, but our traditions. We became man late in the game, not primarily through biological evolution, but through cultural evolution. The selection of traditions enabled the advancement of some groups over others allowing for their expansion. On this evolutionary process Hayek wrote: "We did not select these traditions; rather, they selected us."
   
   Socialists are generally hostile to traditions in favor of embracing their instinctual drives toward altruism and group solidarity. But these qualities cannot sustain the extended order of human cooperation that developed, and is maintained, through the market process, itself protected by our adherence to the traditions of private property, trade, honesty, contract, saving, and rule of law.

5 comments about Free Agent Nation: The Future of Working for Yourself.

1. I go solo after reading this book. It's a new life! I definitely recommend it!



2. Free Agent Nation by Daniel H. Pink is not entirely what it seems.
   
   Daniel Pink is a former speech writer for Al Gore. He wrote for him when Al Gore was serving as Vice President, but not during the campaign for president.
   
   When Mr Pink left the White House and became, as it were, a Free Agent, he was surprised at the number of people who earned income from running their own small business. It became apparent to him that if the Republican Party was the party of big business and the Democratic Party was the party of labor unions, then the growing demographic of the self employed had no real representation.
   
   Therefore, Mr Pink explored who these people were, what they were doing, and what they needed. Of course, Mr. Pink is no economist or statistician. Therefore, his analysis seems a bit heavy on the anecdotal. Likewise, this is not a how to book that will tell you step by step what needs to be done to start up your own business.
   
   Regardless, this is an interesting book that explores a growing social phenomenon of the post-industrial world.



3. By varying accounts there are 25-30 million free agents at present in the United States. Most of these work from home. Add millions of micro-businesses and one comes to the conclusion that the 20th century will be known as the first and last century in which most working people were salaried. Up until the 20th century most working people were small farmers, merchants and independent professionals. If present trends continue - and there is every reason to believe they will - then by the middle of the 21st century most working people will be self-employed in one form or another. This will have revolutionary impact on politics, tax and social policy and the economic balance of power. Cultural attitudes that encourage innovation and risk-taking will have tremendous advantages in this emerging reality. This is why I claim that: "No people on earth (referring to the Jews) are better prepared by virtue of education, temperament and historical adaptability to embrace the challenges of the 21st century". This book provided me with much of the information that enabled me to open my own book "The Optimistic Jew" with the above lines.



4. I found this book inspirational in the sense that before the four-minute mile barrier for running was broken, people felt it couldn't be achieved. However, once the record was broken, others were inspired to strive for their own sub-four-minute records.
   As Dan Pink presents the stories and lessons in Free Agent Nation which he gleaned from interviews with numerous "free agents" I felt my pace quicken in the self-employed race I run daily. It is motivational to run with the knowledge that I'm not running solo but part of a growing number of free agents striving for our own four-minute miles. And the summary of free agent guidelines at the end of the book gave me the confidence that I'm on the right track.



5. At a macro level Dan Pinks view of the "free agent nation" is interesting. The information is well presented and opens a vault of thought and consideration for taking a closer look at micro business. I was looking for more case studies. A peek into a few more examples of how individuals were making sustainable transitions away from the main stream. I looked to this title for inspiration and it didn't deliver to my expectations. A good read, but not compelling enough to re-visit.

5 comments about On Competition, Updated and Expanded Edition.

1. This book is a collection of essays and articles by Michael Porter alone or with others. Most of them are collected from his writings in the Harvard Business Review although two are new to this book. Think of this as a "Porter's Greatest Hits" kind of thing. That is a bit misleading because his HBR articles are not exactly the same thing as his Competitive Advantage books although the topics are definitely related.

   The essays are grouped into three broad sections: 1) Competition and Strategy: Core Concepts, 2) The Competitiveness of Locations, and 3) Competitive Solutions to Societal Problems. Will you find each article of the same high quality? Probably not (again, like a greatest hits collection), but you will find them informative and thought provoking. It is impossible to study for an MBA nowadays without invoking "Porter's Five Forces" in your discussions of competitive and marketing strategy.

   This book can help add to your thinking and understanding of how every aspect of our life is in some way part of a competitive context and the ways it improves our standard of living. It will also help you improve your thinking in how to best strategize for and participate in competitive situations.

   It would be a mistake to think that Porter advocates for a Hobbesian nightmare of life being nasty, brutish and short. Rather, he is more or less helping us think through the nature of the way competition arises and how to best think about its sources and how to manage it and the traps to avoid.

   While Porter's model is used by some as a hammer that sees everything as a nail, it really needn't be used that way and, in its proper context, is very helpful.




2. Remember when you were a youthful entrepreneur operating a neighborhood lemonade stand? If author Michael E. Porter had walked up to buy a cup of punch from you, he probably would have asked about your business strategy. While you poured, he would have questioned what made your lemonade different from anyone else's. If he liked your lemonade, he'd no doubt give you suggestions on how to earn millions competing in the global marketplace. Ah, if only you had listened... The author, America's dean of competition, has spent two decades asking seminal questions such as, "What is competition? What are its effects? How can society benefit?" The Harvard Business Review previously published 11 of the 13 articles collected in this book. In the two new essays, Porter serves up invaluable concepts. His take on the growing importance of location, despite rising globalization, is a tour de force. Oddly, Porter sees no inconsistency in encouraging "productive competition" in the health care industry while advocating universal health care. For Porter, competition is the ingredient that turns lemons into lemonade. We recommend his latest book to any corporate strategist who seeks ideas on becoming more competitive, starting in your own neighborhood.



3. 
   I read this book when it was first published (in 1979) and recently re-read it prior to reading his most recent work, Redefining Health Care which I will also review in the near future. In the Introduction (which then became the first chapter of Competitive Strategy, published in 1980), Porter observes that competition "has intensified over the last decades, in virtually all parts of the world." That is even more true of competition - especially global competition -- during the 27 years since Porter shared that observation. Nonetheless, the core concepts which he and his collaborators rigorously examine remain relevant...indeed, in my opinion, have become even more relevant. Consider these assertions:
   
   1. Competition shapes strategy
   
   2. Successful strategy creates a "fit" among all organizational activities
   
   3. Information can provide a decisive competitive advantage
   
   4. Declining industries require an "end-game" strategy
   
   5. Successful corporate strategy "builds" on three premises: Competition occurs at the business unit level, diversification inevitably adds costs and constraints to business units, and, shareholders can readily diversify themselves.
   
   6. "Moving from competitive strategy to corporate strategy is the business equivalent of passing through the Bermuda Triangle."
   
   Porter carefully organizes the material within three Parts: First, he focuses on competition and strategy for companies at both the level of a single industry and then for multinational or diversified companies; next, he addresses the role of location in competition; and then he Part III, he addresses some important societal issues (e.g. environment, urban poverty, health care, and income inequality), each of which he asserts - and I wholly agree - is "inextricably bound up with economics and, more specifically, with competition."
   
   All but two of the articles originally appeared in Harvard Business Review, the exceptions being "Clusters and Competition: New Agendas for Companies, Governments, and Institutions" and "Competing Across Locations: Enhancing Competitive Advantage through a Global Strategy." In the former, Porter explains his concept of clusters, clusters which are geographic concentrations of firms, suppliers, related industries, and specialized institutions that occur in a particular field in a nation, state, or city. In the latter, Porter brings together the two dimensions of international strategy - location and global networks. As he observes, "The concept of activities, so important to understanding competitive advantage in general terms, provides the basic framework for international strategy as well."
   
   This is by no means an "easy read" but it will generously reward those who read it with appropriate care. By all accounts, Michael Porter is among the most influential and productive knowledge leaders, justly renowned for his cutting-edge thinking on the subject of strategy formulation and implementation but in this volume and in countless others, he also has much of great value to say about competitive and corporate strategy insofar as their global impact is concerned. That said, many of his greatest concerns are those specifically related to the U.S. economy. Hence the importance to me of what he and his collaborators (Claas van der Linde, Elizabeth Olmsted Teisberg, and Gregory B. Brown) have to say in Part III: "Competitive Solutions to Societal Problems."
   
   Those who share my high regard for this volume are urged to check out Porter's other works as well as two recently published books: Kenichi Ohmae's The Next Global Stage and C.K. Prahalad's The Fortune at the Bottom of the Pyramid.



4. I am new to buying used copies through Amazon, so I orignally had some doubts. However, the experience I had with this purchase suprised me in that it was delivered a lot quicker than I expected it, and the book was in great condition. I thank the distributer for displaying such great service and will look foward to making any purchases in the future.



5. Good book from Porter, however this updated and extended version is complicated, I would prefered the non-expanded edition