Foundations Of Real-World Economics: What Every Economics Student Needs To Know

In 18 chapters with a rich bibliography, the economic historian John Komlos pleads for a more just capitalism (or capitalism with human face) and the new paradigm of humanistic economics. He demonstrates that conventional policies have shown their ineffectiveness, while theoretical models of perfect competition are misleading. The author underlines that differences between humanistic and mainstream economics are considerable and they are evident in various aspects, including markets and the government’s role in the economy. With pointed arguments it is illustrated that economic policy is of crucial importance nowadays and its key goal should be people’s well-being and not economic growth at all costs. It is all-important to minimize anxiety, inequality, insecurity, pain, poverty, stress, unemployment as well as to maximize ethics, intellectual satisfaction, health, leisure time, social relationships, love, respect, and a moral life. It is emphasized that markets have weaknesses that detract from their ability to increase the prosperity of the population at large. The “high-pressure” “winner-take-all” economy is criticized and the emphasis is put instead on the quality-of-life indicators. The argumentation includes the 2008 financial crisis, the rise of Trumpism and the other populist movements. It is based on examples from the US economy, however the comparative analysis and general postulates are present throughout the entire work. This book is addressed not only to students who must understand the principles of economics, both at micro- and macroeconomic levels, but also to professors, researchers, practitioners of the private sector and policy-makers.