Kim Gentes

Of the thousands of pages of text among the dozens of now iconic books written on economics, there is no more succinct and penetrating exploration of the ties of economic capitalism with political liberalism than the relatively short work of "The Road To Serfdom" by Friedrich A. von Hayek. Having read several of these voluminous texts myself, I can say unequivocally that "The Road To Serfdom" is the singular text that simultaneously explains the simplicity and benefits of the free market system while profoundly destroying the notion that personal liberty could be found within the socialist economic framework. Hayek, as he admits of himself, is an academic and technical economist who felt compelled to write a defense of the basics of liberalism (in the 19th century classical definition) as the unique and necessary combination of economic freedom and personal liberty only after it was clear that many of his influential political contemporaries in WWII Europe had vastly misunderstood the workings of socialism, and that it's ultimate outcome would always be totalitarianism- either in the form of Communism, as in Russia, or in the form of Fascism, as in Nazi Germany.

In fact, this book outlines the progression of what exactly happened in Germany to produce the society and opportunity for Hitler's regime to become the tyrannical monster of the modern world. Hayek clearly and convincingly explores how the fears of individuals based in economic instability of a free market system can lead people to eventually surrender their individual liberties in hopes of economic and nationalistic security. This surrendering becomes a downward spiral of personal liberties as the willing (at least initially) cost of an ever-expanding socialist economic state. A state in which the individual hopes of security and sustenance become permission for an eventual autocracy that maintains all decisions for all peoples at all times.

The observations of Hayek are not meant merely as a history lesson, but were a clear warning to England and America of the dangers of socialist economic thinking (and socialism in general), because Hayek believed that the rise of socialism in those countries would eventually set the stage for a totalitarian regime to be possible. In fact, Hayek's thesis and warnings are so cutting, and so well defended that he almost single-handedly inspired a renaissance of 20th century liberalism (though it more often went by the label of conservatism by its adherents such as Margaret Thatcher and Ronald Regan).

"The Road To Serfdom" is not just about the political and economic threads that led to Nazi Germany, it is about the true balance of power between personal liberties and state control. If you have never read an economics book in your life, you MUST read this one. It is by far the most powerfully written, yet simply understood, philosophical explanation of liberalism and the free market system- and why the combination of free market economy is the central component to ensure the other freedoms that accompany modern liberty (emancipation, universal suffrage, free speech and more). The ability to make self-determined decisions about work and economic exchange imbues in itself the power to allow both individuals and entities to pursue success. The natural balance of the free market is not only clearly articulated, Hayek contrasts it with the inherent weaknesses of the planned economic socialist state.

This is a political book, but whatever your politics are- you cannot afford to ignore this book. Whatever your political understanding or persuasion, this book is an absolute "must read" text. While books like Mises' "Human Action" and Adam Smith's "Wealth of Nations" provide more technical details and examples on how the free market system works, neither of those books provide so clear and convincing a treatise on the benefits and perpetual health of a economic liberalism, as "The Road to Serfdom".

Once beginning to read this book 4 days ago, I could not put it down. I am now on my third time through and continue to find it as enthralling and engaging each time through. A truly brilliant articulation of economics, freedom, free market, and the dark path of socialism that eventually leads to totalitarianism. If you believe you understand economics and have never read this book, you have missed one of the greatest texts in this field, in history.

Amazon Link: http://amzn.to/XJKd8j

Review by Kim Gentes

Tracing the history of financial development seemed like a good idea at the time. But what I found most often (in books I perused before buying) was that most books focused on economics, whose cogent thinkers don't arrive on the scene until the 18th century. Then I found "The Ascent of Money", whose apt title keeps a sharp focus on the instruments of exchange rather than the philospohies of theories, political bents of champions, or minute formulae of econometrics.

"The Ascent of Money" begins with ancient times in Mesopotamia and accounts for us the tale of first ledger accounts that were made with clay markers- the first instance of bonafide money. Since those first signs of tokens of exchange, humans have invented ways of marking wealth with various devices. Without spending time on economy, Ferguson accelerates through history, reaching mideavil Europe in fairly short order.

His goal is clear- trace the uses and demands of how people, leaders and governments invented mechanisms for exchange, funded expansion, waged wars, invented industries and toppled kingdoms. All with the tool of money.  He explains the details of how various forms of exchange, from metals to paper to digital balances made their way into society.

The book is exceptional writing, with dizzying amounts of information, but all kept sharply in focus of the topic. Even as he explains M1, M2, M3, securities-backed derivatives or the failure of LTCM and more, the reader never feels left in the dark by a harried professor trying to overwhelm you with all their brilliant knowledge. Ferguson is obviously a brilliant scholar, but he doesn't lean on details to impress the student, he weaves a thoughtful narrative that calls out the minutia in appropriate amounts and at the appropriate times.  After reading several other books on the history of economics, it was wonderful to read a book that dealt with monetary development without being theory driven or school biased.

If you love history, you will love this book. I learned an exceptional amount about money in all its forms and enjoyed the writing the entire way through. An excellent book. I highly recommend it!

Amazon Book Link: http://amzn.to/RJMVaB

Review by Kim Gentes

There are very few studies which garner more yawns than economics. Despite it's practical application to literally every person, it's been popularly bantered about as boring and only understandable by the "math and theory geeks". As this book proves, nothing could be further from the truth.

For myself, as a student of history, I've been looking for a concise review of capitalism and the development of economic theory and thought in modern times. "The Making of Modern Economics" by Mark Skousen has impressed me as both a highly readable narrative and a diligent study of all the major people, theories, schools, history and events that shaped the landscape of modern economics. Skousen's transparent espousal of Adam Smith's foundation of natural liberty sets the tone for this capitalist understanding of this essential modern discipline.

Skousen navigates through 250 years of what amounts to revolutionary change in the way human beings work, think, save, spend, and manage resources. At its core, economics is the essential study of how humans deal with a world of resources constrained by scarcity. According to Skousen, Adam Smith is the first known figure to compile a major work that addresses the issue of economics and provides a structural framework for how understanding it can best deal with scarcity. The result is the nacient birth of the free market capitalist system that is built upon the theory of natural liberty that Smith proposes in the book, and which is counterbalanced by the impact of another of Smith's theories- the invisible hand.

Skousen postulates that Smith provided the "house" on which all economic thought has been built since. But more than just giving his philosophical grading to Smith, Skousen traces person by person through history- comparing each character's work against the original ediface constructed by Smith (and against one another). In doing this, Skousen creates a narrative that is bound to the benefits of free market capitalists. Characters that wrote and taught theories opposing Adam Smith (such notables as Marx and Keynes) are given clear articulation in points both positive and negative. Likewise, advocates such as Milton Friedman and Friedrich Hayek each recieve sections celebrating their comebacks and chastising their errors.

This book leaves most of the minute details of economic data and statistical study out of the text (or relagated as references), which makes it an historical study more than an econometric or financial review of theories.  As a readable, understandable and enjoyable history, this book is exceptional.  If you are a free market advocate, it will be a delight.  Skousen clearly has written this as much as a defence of Smithian economics as he has for an historical understanding of the development of political economy into modern economics. But he succeeds at both!

Really, if you have any interest in the story of freedom as it is manifested in the light of economics, then this book is a "must read". Thoughtful and enjoyable writing on every page (of which there are nearly 500).

Amazon Book Link: http://amzn.to/PXGbVZ

I strongly recommend this book! Available in multiple formats. I read it in Kindle eBook format and listened to part of it in Audible book format. It is also on paperback and hardback.

Review by Kim Gentes