ECONOPOWER - How a New Generation of Economists Is Transforming the World
By Mark Skousen
Published by Wiley, April 08
These are heady times for economists who are applying their tools in novel ways to solve the world’s problems. Economics is no longer a dismal science, but an imperial science, invading like an army into new territories – politics, business, finance, law, religion, and other social sciences. In his latest book, ECONOPOWER, professional economist and financial advisor Mark Skousen reveals who is leading this new “golden age of discovery” and highlights seven powerful new tools that economists are using to solve problems in the boardroom, academia, the courtroom, and the halls of Congress. Economists are transforming people’s lives and the destiny of nations, for better or for worse, depending on how closely they adhere to or violate basic economic principles.
Clearly written for the intelligent lay reader, ECONOPOWER provides a detailed yet readable analysis of what Skousen calls the seven power tools of economics that can transform how we think and what we do in our lives:
- Accountability. Economics is all about accountability. Nobody spends someone else’s money as carefully as they spend their own. Ownership rights, therefore, are essential to accountability. “A fool is wiser in his own house than a sage is in another man’s house,” says William Graham Sumner. This principle applies at home, in the workplace, and in the halls of government.
- Economizing. In a world of scarcity and choice, one must economize. The most successful households, businesses and governments are those that invest for a better tomorrow, live within their means, and avoid excessive debt. Measuring costs and benefits helps determine the best, most efficient use of resources.
- Saving and Investment. “It’s time to discourage the consumer-society mentality of excessive debt, overspending, and waste, and to encourage thrift and the productive use of investment resources,” says Skousen. Saving and investment are critical elements in achieving long-term success in business and life in general.
- Incentives. Incentives matter. The profit motive promotes economic growth by creating better products at cheaper prices. A freely competitive price system is also the best solution to an economic crisis. Taxes won’t do it. As Calvin Coolidge said, “You can’t increase prosperity by taxing success.”
- Competition and Choice. Economic freedom leads to choice and opportunity. The best way to achieve prosperity is to produce what people want. The fastest way to earn more is to produce more of what the customer wants, as a worker, or as a business entrepreneur.
- Entrepreneurship and Innovation. Success for individuals as well as for nations depends on entrepreneurial skills and strategies that often go contrary to the conventional wisdom. Society must embrace the change, sometimes dramatic change, that comes with innovation and entrepreneurial skills.
- Welfare. The welfare principle states that you should try to help those who need help. This is the virtuous principle of all good religions and good economists. But we must not forget the other side of the welfare principle: officials have an obligation not to help those who don’t need help.
ECONOPOWER then goes into detail on various new branches of economics that are making a difference, such as the new science of behavioural economics. Readers will also learn about modern portfolio theory and new ways financial economists have uncovered to beat the market with less risk. Skousen shows how economics has been responsible for international success stories such as the economic miracles in Asia and Ireland.
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About the author
Mark Skousen is a professional economist, investment expert, university professor, and author of more than 25 books. Currently he holds the Benjamin Franklin Chair of Management at Grantham University. Since 1980, he has been editor-in-chief of Forecasts & Strategies, a popular award-winning investment newsletter (www.markskousen.com). In 2004-2005, he taught economics and finance at Columbia Business School and Columbia University. He is a former analyst for the CIA, a columnist to Forbes magazine, and past president of the Foundation for Economic Education. He has written for The Wall Street Journal, Forbes, and The Christian Science Monitor, and has appeared on CNBC, CNN, ABC News, Fox News, and C-Span Book TV. His bestsellers include The Making of Modern Economics and Investing in One Lesson.
ISBN 978-0-470-13807-6, Hardback; £13.99 / €17.50
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