Foundations of Real-World Economics: What Every Economics Student Needs to Know
The 2008 financial crisis, the rise of Trumpism and the otherpopulist movements which have followed in their wake have grown outof the frustrations of those hurt by the economic policiesadvocated by conventional economists for generations. Despite this,textbooks continue to praise conventional policies such asderegulation and hyperglobalization.This textbook demonstrates how misleading it can be to applyoversimplified models of perfect competition to the real world. Themath works well on college blackboards but not so well on the MainStreets of America. This volume explores the realities ofoligopolies, the real impact of the minimum wage, the double-edgedsword of free trade, and other ways in which powerful institutionscause distortions in the mainstream models. Bringing together thework of key scholars, such as Kahneman, Minsky, and Schumpeter,this book demonstrates how we should take into account theinefficiencies that arise due to asymmetric information, mentalbiases, unequal distribution of wealth and power, and themanipulation of demand. This textbook offers students a valuableintroductory text with insights into the workings of real marketsnot just imaginary ones formulated by blackboard economists.A must-have for students studying the principles of economics aswell as micro- and macroeconomics, this textbook redresses theexisting imbalance in economic teaching. Instead of clinging to anideology that only enriched the 1%, Komlos sketches the outline ofa capitalism with a human face, an economy in which people livecontented lives with dignity instead of focusing on GNP.