While some people might not like it to be this blatant, but money is what governs people. It is the defining factor of our lives. With Bitcoin and cryptocurrency coming into the picture, how we see and use money has changed in many ways but its full impact will be seen in the future.
If you’ve invested in bitcoin or a cryptocurrency enthusiast, it might have been because this new form of money created a sense of curiosity in your mind with regards to how money works.
In a world where people innovated an entirely new form of money almost a decade ago, it’s sad knowing how most people we know don’t even understand how money works and how much understanding economics is important to know and act when some wrong decisions are made by authoritative figures.
For that reason, we decided to compile a list of 5 books that should give you a headstart into understanding the world of economics.
Let’s check out our top 5 picks one by one.
1.The Wealth of Nations by Adam Smith
If you’re going to go deep into learning about economics, this is arguably the best to begin your journey with. Written by the father of economics, ‘Adam Smith’, it is widely accredited as the book that laid the foundation of economics as a discipline. In the book, Adam refers to supply and demand as an ‘invisible hand’ that is responsible for determining prices and the quantities of goods/services bought and produced.
Smith’s work was what lead to the creation of a universal understanding of the market economy and has not lost its relevance and impact even though it was written way back in 1776
2. Capital in the Twenty-First Century by Thomas Piketty
The book proposes something which not every rich citizen in the world would like to know and act upon: a global tax on wealth. French Economist Thomas Piketty, the author is widely credited with re-inventing economics in the same way that JM Keynes did eighty years ago. While he doesn’t do that the way Keynes did, his redistributionist solutions sound convincing enough and can prove to be the antidote to Trumpism, when the time comes.
Written in 2005, Freakonomics is a fairly new book. The authors Steven Levitt and Stephen Dubner explain economics based on the principle of incentives. The book takes a novel approach to study economics and couples it with some interesting research.
The book argues that conventional wisdom is wrong and introduces three different concepts by challenging our belief that most drug dealers are wealthy. Using a story to do the same, the book introduces. the following concepts:
– Supply, Demand & Equilibrium Price
– Winner Takes All Labor Market
4. Why Nations Fail: The Origins of Power, Prosperity, and Poverty
Written by authors Authors Daron Acemoglu and James A. Robinson, the book is an examination of the causes of economic inequality.
The book revolves more around the political side of things. The authors put forth an argument that underdevelopment is caused by political institutions and not by geography, climate, or other cultural factors.
The book also reveals how elites in underdeveloped countries deliberately plunder people in an attempt to keep them impoverished.
5. Basic economics: a common sense guide to the economy
The book presents economics in a simple and straightforward manner, such that even a layman could comprehend it. It does not include any
jargon, graphs, or equations that dominate most other economic writings.
Aimed at people with no previous study of the subject, the target audience of the book is the general public and beginning students in economics.
The book illustrates economic principles with vivid examples from countries around the world, to make those principles easy to remember
If you are looking to dive into the realm of economics, the aforementioned books should serve you very well. Good luck with reading them!