Economics for Everyone: A Short Guide to the Economics of Capitalism

Jim Stanford, who is economist for the Canadian Auto Workers union, has produced a useful introduction to the economics of capitalism. He shows us capitalism's basics: work, tools and profit; how it works (or doesn't) as a system; its complexity; and various challenges to capitalism. He shows up capitalism's inherent failings and proposes policies that would be in the interests of the working class, the vast majority of the population in industrial countries. He points out, "Most modern jobs and careers fall into the category of wage labour - whether they are in private companies or public agencies, blue-collar or white-collar. The stereotype of a `worker' as someone who performs menial tasks on an assembly line is badly outdated. Workers today perform a wide variety of functions, many of them requiring advanced skills. But they are still workers, so long as they perform that work for somebody else, in return for a wage or salary. Scientists in a research laboratory; surgeons in a large hospital; engineers in a construction firm - these are all workers (although culturally, they may not like to define themselves as such). They perform their labour in return for a salary, and they do not own or significantly control the organization which they work for." He shows that the capitalist class is just two per cent of the population, and note, "Many of these rich individuals work; but the key distinction here is that they don't have to work, since they own enough business wealth to support themselves very comfortably without working." He praises Cuba: "Socialist Cuba - where average health outcomes are superior to those in the US - manages to do more, given its GDP, to improve human welfare than any other country in the world. ... Cuba's admirable social achievements (its education, health, and cultural indicators outrank most developing countries, and even many developed countries) demonstrate the potential of socialism to leverage the maximum possible well-being from a given amount of material production." He also points out how employers gain from the free movement of labour: "employers are permitted to re-create abundant supplies of cheap, desperate labour by exploiting vulnerable immigrants ... Capitalists may encourage these migrations when they face uncomfortably tight labour market conditions in particular countries (in which case immigration is a convenient way to keep a lid on wages)." As he observes, "Migrants are treated as temporary, second-class citizens, often forced to return to their country of origin when their jobs are finished, and subjected to social and legal abuses in the interim. Their migration can also harm the countries they leave - especially since it is usually the best-educated, most capable people who are allowed to migrate to better-paying opportunities in other countries."

Of all the books I have bought for myself over the years, this is definitely one of the most useful ones I have read. Rather than being one of those books that try to present economics as a universal science, capable of explaining everything from a few absolute truths, "Economics for Everyone" showed me a side of economics I had never experimented. All of the economics courses I took as an undergrad focused on neoclassical economics. The problem, however, is that I was never told that neoclassical economics is just one possible explanation of economic phenomena. "Economics for Everyone" made me understand this. From the very beginning, Jim Stanford (a New School graduate and trade union economist) approaches the subject in a critical manner, emphasising the fact that economics should be a more democratic subject of study, where the visions of all segments of society ought to be meaningful for the purpose of seeking solutions to everyday problems. Economics is not just the sacred knowledge of a caste of economic gurus. Instead, Stanford advocates a more grassroots approach to economics and a more critical stance vis-à-vis capitalism, as - may I add - capitalism is there to try and make our lives more prosperous, not vice versa: if it doesn't work, we must have the courage to challenge it, and advocate its reform. Content-wise, the book presents an incredibly accessible overview of macroeconomic topics. In particular, it starts from presenting a basic "closed" economy featuring just workers and firms, and later goes on adding players to this picture, such as governments, the environment, the financial sector and foreign trade. In so doing, however, Stanford puts his education as a heterodox economics to good use, bring to bear on the various problems a wealth of different perspectives: Keynesian, Marxist and feminist, to name those I was able explicitly to recognise myself. Stanford offers a very strong and credible voice in favor of a more participatory and democratic approach in suggesting policy conclusions vis-à-vis the economic problems of the modern world. Highly recommended!

Excellent text for individuals seeking for a source introducing and critically examining the key economic concepts and issues. The format is very accessible and enjoyable. It will be suitable for high school students and adults without a background in critical theory. This is much more than a standard textbook in economic theory and if you are choosing between this text and a textbook, this one should be the one you read first. If you do have a basic background in economics but not critical theory, this is still a required reading for you.