The Structure of Production

Skousen's explanation of the workings of the economy in terms of the 'aggregate production structure' is, in his own words,' a complete general description of economic activity, taking into account aggregate demand at every level or stage of production (p 364). This fascinating book helps to explain, in simple terms, how the economy works and attempts to come to grips with various aspects of interrelated micro and macro concepts;tying them all together to provide a logical and realistic system of economics. Does he succeed? I still have many questions. And some he himself have been highlighted in the closing chapter on 'The Future of Economic Research'. But what the author does is turn our attention to the important role of capital in the structure of production, and the effects of various monetary policy on this structure. Now the author does much more, but to my mind, these are the two most important contributions that he has made. Skousen also highlights, through his painstaking examination of various authors and theories, that economic development and wealth are only created through due attention to the capital section of an economy. There is no quick way to national development. In doing so, he domolishes the Keynesian allusion that we can 'consume' our way to prosperity- either as a policy of 'national growth' or as a solution to a recession. This book is a must for the serious economics reader. It is readable and understandable. There is no maths and some graphs which are well explained. But there is plenty of is good, solid, verbal economic analysis. Buy this book and you won't be disappointed!