Kim Gentes

If you are trying to learn about economics there are a few different approaches you can take. First, you can study the classic documents, such as "The Wealth of Nations" (Adam Smith), "The General Theory" (J M Keynes), "The Road to Serfdom" (Hayek), "the Communist Manifesto" (Marx) and a few other seminal texts to gain an understanding of how the modern economic stream of study progressed in the last 3 centuries perhaps right up to current works from Friedman and even Laffer. But that approach is arduous and frankly too technical for most people to care to enage with. The second route is to take a college series of courses, which may run through these same ideas in summary by using texts such as survey books like "The Making of Modern Economics" (Mark Skousen) or other general survey books. But this second route maybe not provide a balanced outlook of the differing perspectives, since professors and writers of individual texts are prone to present support for their own beliefs rather than give a neutral view.  The last route left for those of us who aren't trained economists is to read simpler books, written for the public.

In that vein, one of the best books I've come across is simply titled "50 Economic Ideas You Really Need To Know". Author Edmund Conway has written a cogent and actually cohesive book that is less disjointed than the title might imply. Beginning with Adam Smith's "invisible hand" doctrine, exploring supply and demand, the Malthusian trap and opportunity cost, Conway guides the reader quickly and clearly through fifty (yes 50!) of the key concepts in economics. After having read several other books (from many of the 3 different approaches I mention above) on economics I found this layman's guide to not only be remarkably accurate and well written but well organized.  Economics is often said to be a study of people and their uses of resources, including the decisions they make regarding those resources. Conway starts this book with a more pointed view saying -

Economics examines what drives human beings to do what they do, and looks at how they react when faced with difficulties or success.1

This turns out to be an excellent primer to understand how this book is approached and presented. Starting with the basic core of Smith's economic theory, the author moves from basic numerical balances (such as supply/demand) through philosophical ideas (such as communism, keynesianism, individualism) to measurements of economies (such as money, taxes, debt, unemployments) to finances and markets (such as stocks, bonds, credit markets etc) and finally to modern issues (such as creative destruction, global deficits, protectionism, technological revolutions).  Each of these are readable as separate items (great if you need to learn about money markets or pensions without wading through an entire book), but Conway has blended the topics so well that the text is built into an excellent progression if you have the time to sit down and read the short 200 page book in a sitting or two.

For now, this is the best layman's summary book on economics that I have found. If you want a crash course- this is it. It's clear, concise, and takes great many pains not to be a partisan supporter of whatever school the author might have an affinity for. In fact, most economics books bleed their prejudices so clearly it is often obvious whether the writer is a proponent of Keynesian, Austrian, Friedman or any of the other streams of economic theory. Here, the theories are all presented and none derided. The pros and cons are pointed out for each. For this alone, I consider this short layman's guide to be solid gold, and far better than 90% of the detailed economic survey books available (which almost always take philosophical sides).

If you are looking for a one-book-fits-all, short summary of economics to get through in a day or so-- look no further than "50 Economic Ideas..." I can't give this book any higher praise than my unequivocal recommendation!

Amazon Link: http://amzn.to/V8Dpy8

Review by Kim Gentes

1. Conway, Edmund (2009-09-03). 50 Economics Ideas You Really Need to Know (50 Ideas) (p. 3). Quercus. Kindle Edition.

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

“From Beirut to Jerusalem” is the thoughtful memoirs of a Jewish-American journalist based in the Middle East during the 70’s and 80’s. Thomas Friedman was The New York Times bureau chief for five years in Beirut and similarly served as the Israel bureau chief based in Jerusalem, after his term in Lebanon. Friedman writes with the inquisitive mind of a reporter, but the analytical prowess of a seasoned diplomat. What I loved most about this book is the insightful concepts that Friedman mines from his experiences in the Middle East, all the while embedding the reader in the personal narrative of his life in the conflict-ridden countries in which he worked and lived.

For example, after the reader learns about Friedman’s first weeks in Beirut and even the bombing of his own apartment building, the author has the presence of mind to draw out a poignant moment in the lives of a common citizen:

“In the United States if you die in a car accident, at least your name gets mentioned on television,” Hana remarked. “Here they don’t even mention your name anymore. They just say, ‘Thirty people died.’ Well, what thirty people? They don’t even bother to give their names. At least say their names. I want to feel that I was something more than a body when I die.”[1]

But Friedman isn’t just reminiscing about the incidentals of common hardships (valuable as that is), he is learning the under-girding truths of the society in which these things are occurring, and synthesizing those ideas into concepts that matter at the macro level:

What made reporting so difficult from Beirut was the fact that there was no center—not politically, not physically; since there was no functioning unified government, there was no authoritative body which reporters could use to check out news stories and no authoritative version of reality to either accept or refute; it was a city without “officials.”[2]

It is this dual gifting that makes the entire book both readable and insightful. Friedman does a good job at nuancing the opinions of the book with broader opinions of the people involved in the meta-stories. You hear about the close, personal work and friend relationships he has with Lebanese, Syrian, Jewish, and Palestinian individuals whose own stories (both tragic and hopeful) color the pages of this book. He tries to give you fair vantage points of all the people he meets- even when they are people he is being threatened by! For example:

Most of the PLO officials and guerrillas with whom I dealt regularly knew I was Jewish and simply did not care; they related to me as the New York Times correspondent, period, and always lived up to their claims to be “anti-Zionist” and not “anti-Jewish.”[3]

Friedman is aware that the world in which he is working is fraught with misunderstanding or indifference- or sometimes both. It is that misunderstand that ultimately leads to conflict and death. The book repeats this cycle, even as Friedman makes his personal journey from the US to Beirut, to Jerusalem and back to the US.  The book is clear that there is a price for not paying attention to others, and not addressing the real issues, as he says powerfully:

The similarity between Israel and Lebanon is rooted in the fact that since the late 1960s both nations have been forced to answer anew the most fundamental question: What kind of state do we want to have—with what boundaries, what system of power sharing, and what values?

...both the Lebanese people and the Israeli people have failed to resolve their differences on these fundamental questions, and have each become politically paralyzed as a result...

Whereas in Lebanon the Cabinet was ineffectual because it represented no one, in Israel the Cabinet was ineffectual because it represented everyone. In Lebanon they called the paralysis “anarchy” and in Israel they called it “national unity,” but the net effect was the same: political gridlock.[4]

The author doesn’t simply cover the details of Lebanon and Israel. He also explores the connections with important middle east entities, both as they impact his host countries and as their own stories restate the tragic narrative of violence in the region. He describes the tragic story of the city of Hama, Syria, whose uprising against its government and brutal ruler President Hafez Assad led to its obliteration, along with tens of thousands of its citizens. Friedman also explores the regime of Saddam Hussein, in Iraq, and its terrible use of force to repress uprisings against its authoritarian government. He even provides a brief historical and contextual lesson for the entire region by describing the Ottoman empire, its end and dissection after World War I, and how the creation of modern Middle East countries forced tribes, languages and religions to be grouped in countries that were artificial constructions of  the British and French powers (which is arguably considered one of the reasons for much internal strife within those countries, even to this day). The book explores the PLO and its self-aggrandizing leader Yasir Arafat, with character and historical descriptions as well. So much is covered in this books 526 pages, it is impossible to summarize it here. Additional highlights include the Israeli invasion of Lebanon, the US Marine’s peace keeping mission in Beirut, the Palestinian intifada (uprising), the details of Egypt/Israel’s war and eventual treaty, and much more.

Friedman does not allow his own heritage as a Jewish American to slight his integrity as a reporter. One of the clearest examples of this is his clarity of understanding with the desire of his Jewish compatriots to establish their homeland in the ancient land of Palestine- connected once again to the cities, locations and historical places that have profound meaning to the Jewish heritage. But he isn’t taken up in either Zionist or anti-Jewish extremes. He sees how easily the oppressed nature of the Jewish psyche can turn from being the historical oppressed to the vengeful oppressors:

As I watched these young Jewish terrorists in their yarmulkes and long beards walking around the courtroom, I could not help but be struck by their self-confidence and self-righteousness. The way they strutted about, chatting with their wives, chomping on green apples, and almost literally turning up their noses at the judge, was galling. I had seen the same arrogance among members of Hizbullah, the Party of God, in Beirut. These were simply the Jewish version.[5]

As the book rounds the corners of Friedman’s experience, the author doesn’t fail to speak of the powerful impact of the American superpower on all the nations of the middle east. Friedman fairly criticises and compliments the pertinent aspects of US policy, leadership and communications.  Like he does with all the parties involved, the author mines the nuggets that we rarely think about but, in fact, reflect the pertinent meta-narratives that could make a significant difference.

Israeli political theorist Yaron Ezrahi always liked to tell me that the most important thing an American friend can offer Arabs and Israelis is American optimism—exactly the kind of innocent can-do optimism that the Marines brought to Beirut. The Marines’ almost childlike belief that every problem has a solution, that people will respond to reason, and that the future can triumph over the past is a wonderful thing, Yaron would remind me. It is a trait which Americans should never be ashamed of.[6]

Friedman gets to specifics, speaking about Israeli Prime Ministers, PLO leader Arafat (and others), and even US diplomats.  My favorite section of the book is actually after the final chapter. In the epilogue, Friedman drills down to succinct, explicit steps that could be helpful for addressing the conflict of the Palestinian and Jewish /Arab conflict. His insights here are most thoughtful, although now perhaps more hopeful than the post-9/11 world might concede (his book is written in 1996, before the WTC and 9/11 attacks). Still, I believe it is the optimism that Friedman points to (in his quote about Americans) that can lead his other points to fruition. This is an expansive, engaging, personal, yet grandly comprehensive book. Very well done and worth reading.

Amazon Book Link: http://amzn.to/zp20ra

Review by Kim Gentes

[1] Friedman, Thomas L, “From Beirut to Jerusalem”. (New York, NY: Anchor Books/Doubleday 1996)., Kindle Edition, Page 29

[2] Ibid., Page 50

[3] Ibid., Page 57

[4] Ibid., Page 252, 253

[5] Ibid., Page 306

[6] Ibid., Page 499