Economics text book chapter summaries

A classic originally published more than fifty years ago: Mathematics for the Millions:

Economics text book chapter summaries

Context[ edit ] Capitalism and Freedom was published nearly two decades after World War IIa time when the Great Depression was still in collective memory. Under the Kennedy and preceding Eisenhower administrations, federal expenditures were growing at a quick pace in the areas of national defensesocial welfareand infrastructure.

Both major parties, Democratic and Republicansupported increased spending in different ways. This, as well as the New Dealwas supported by most intellectuals with the justification of Keynesian economics. Capitalism and Freedom introduces the idea of how competitive capitalism can help to achieve economic freedom.

Economics text book chapter summaries

Friedman opts for the continental European, rather than American, definition of the term. The Relation between Economic Freedom and Political Freedom In this chapter, Friedman promotes economic freedom as both a necessary freedom and also as a vital means for political freedom.

He argues that, with the means for production under the auspices of the government, it is nearly impossible for real dissent and exchange of ideas to exist. Additionally, economic freedom is important, since any "bi-laterally voluntary and informed" transaction must benefit both parties to the transaction.

Friedman states that economic freedom protects minorities from discrimination since the market is apathetic to, "their views or color. The Role of Government in a Free Society According to the author, the government of a liberal society should enforce law and order and property rights, as well as take action on certain technical monopolies and diminish negative "neighborhood effects.

Far from acting as a stabilizer, the Federal Reserve failed to act as it should have in several circumstances. International Financial and Trade Arrangements This chapter advocates the end of the Bretton Woods system in favor of a floating exchange rate system and the end of all currency controls and trade barriers, even "voluntary" export quotas.

Friedman says that this is the only true solution to the balance of trades problem. Fiscal Policy Friedman argues against the continual government spending justified to "balance the wheel" and help the economy to continue to grow. On the contrary, federal government expenditures make the economy less, not more stable.

Friedman uses concrete evidence from his own research, demonstrating that the rise in government expenditures results in a roughly equal rise in GDP, contrasting with the Keynesian multiplier theory. Many reasons for this discrepancy are discussed. The Role of Government in Education The policy advocated here is vouchers which students may use for education at a school of their choice.

The author believes that everyone, in a democracy, needs a basic education for citizenship. Though there is underinvestment in human capital in terms of spending at technical and professional schoolsit would be foolish of the government to provide free technical education.

The author suggests several solutions, some private, some public, to stop this underinvestment. Capitalism and Discrimination In a capitalist society, Friedman argues, it costs money to discriminate, and it is very difficult, given the impersonal nature of market transactions.

However, the government should not make fair employment practices laws eventually embodied in the Civil Rights Act ofas these inhibit the freedom to employ someone based on whatever qualifications the employer wishes to use.

For the same reason, right-to-work laws should be abolished. Monopoly and the Social Responsibility of Business and Labor Friedman states, there are three alternatives for a monopoly: None of these is desirable or universally preferable. Monopolies come from many sources, but direct and indirect government intervention is the most common, and it should be stopped wherever possible.

The doctrine of "social responsibility", that corporations should care about the community and not just profit, is highly subversive to the capitalist system and can only lead towards totalitarianism.

Occupational Licensure Friedman takes a radical stance against all forms of state licensure. The biggest advocates for licenses in an industry are, usually, the people in the industry, wishing to keep out potential competitors.

The author defines registration, certification, and licensing, and, in the context of doctors, explains why the case for each one of these is weaker than the previous one. There is no liberal justification for licensing doctors; it results in inferior care and a medical cartel.

The Distribution of Income Friedman examines the progressive income taxintroduced in order to redistribute income to make things more fair, and finds that, in fact, the rich take advantage of numerous loopholesnullifying the redistributive effects.

It would be far more fair just to have a uniform flat tax with no deductions, which could meet the tax revenues with a rate only slightly greater than the lowest tax bracket at that time.

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Social Welfare Measures Though well-intentioned, many social welfare measures don't help the poor as much as some think. Friedman focuses on Social Security as a particularly large and unfair system. Alleviation of Poverty He advocates a negative income tax to fix the issue, giving everyone a guaranteed minimum incomerather than current measures, which he sees as misguided and inefficient.

Conclusion The conclusion to the book centers on how, time and time again, government intervention often has an effect opposite of that intended.

Most good things in the United States and the world come from the free market, not the government, and they will continue to do so.

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The government, despite its good intentions, should stay out of areas where it does not need to be.This site is intended as a resource for university students in the mathematical sciences.

Books are recommended on the basis of readability and other pedagogical value. Topics range from number theory to relativity to how to study calculus. These economics notes cover all of the key topics covered in the Macroeconomics, 15th edition textbook.

You can use these AP economic outlines to study for the AP Economics exam or any other economics test. This bar-code number lets you verify that you're getting exactly the right version or edition of a book. The digit and digit formats both work. The Shock Doctrine: The Rise of Disaster Capitalism is a book by the Canadian author and social activist Naomi the book, Klein argues that neoliberal free market policies (as advocated by the economist Milton Friedman) have risen to prominence in some developed countries because of a deliberate strategy of "shock therapy".This centers on the exploitation of national crises to.

Designed for introductory-level statistics courses, Understanding Statistics for the Social Sciences, Criminal Justice, and Criminology presents the fundamentals of statistics in a clear and simplified accessible text addresses all of the basics of statistical analysis while still providing the reader with the larger view of statistics.

Macroeconomics teaches students to be young economists, providing a contemporary approach to the subject and a wealth of real-life case studies to allow students to understand how economics works in practice. Responding to the financial crisis, this text explains the modern approach to macroeconomics with simplicity and rigour, while retaining the focus on particular characteristics of the.

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