Naked Economics is an easy to read overview of micro and macroeconomics. I was expecting more of a Freakonomics-style book with a series of short chapters examining particular happenings, but this is more of a textbook. That said, it was really good and was filled with very interesting insights.
Author Charles Wheelan guided me through the various economic principles and explained them in an easy-to-understand way. I wish I’d read it before that macroeconomics class at UW! I learned about capital markets, inflation, the role of the Fed, globalization, and even international development.
With regard to the anti-globalization WTO protesters in Seattle 10 years ago, Wheelan reminds us that trade is voluntary, and that the conference delegates most upset about the street riots were those from developing countries. The protesters essentially were looking to protect the poor populations of developing nations by erecting trade barriers. Wheelan argues this plan is uneducated. What the protesters didn’t understand was that by definition, trade makes both parties better off or else it wouldn’t happen. In fact, when we dislike a country like Cuba or Iran, we stop trading with them under the guise of “economic sanctions.” Stopping the flow of free-trade, jut like an economic sanction, is not just undesirable; it’s a punishment.
One of the most interesting examples was regarding health care. Wheelan is a free market advocate in every sense of the term, yet explains why the economic incentives involved in buying private health insurance might justify government involvement. Worth the read and still relevant, despite its 2002 publication date.
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