New Ideas From Dead Economist

I PICKED up a book 2 days ago from the local library. Its titled New Ideas From Dead Economist. I chanced upon this book while I was taking a last minute browsing of the business section. I did not go to the library with the intention to borrow books, I went there to read my own book and magazine I bought 2 weeks ago. After enjoying one day of doing nothing but play games, I finally started to read the book yesterday.

This book is about economics. In the first few chapters, this book touched on what economists do and problems they faced with politicians. The book presented the world of economics in a non-boring, non-chart, non-figure way. It tells stories.

It caught my interest when it offered explanations on many subjects that I have been pondering on for some time.

All the time, I've been posing questions to myself in hope that if I've answered them, my knowledge of money would significantly increase. I asked myself to fully grasp the way how money was flowing in past, is flowing now in the present and will flow in the future world.

One most significant idea that I got from this book so far which came from a dead economist Adam Smith was that: it all balls down to the self-interest of man.

It concludes that for a society to prosper, a government or any ruling body should tap into the one rich natural resource existing in all mankind. And that is self-interest.

What lies within each and every human being is the "desire of bettering our condition, a desire which though generally calm and dispassionate, comes with us from the womb and never leaves us till we go to the grave." It is also a human nature to exchange one thing for another.

These are natural drives that should be exploited to increase wealth. Charity and altruism should not be depended on for though man constantly needs help from others, it is hoping in vain "to expect it from their benevolence only. He will be more likely to prevail if he can show them that it is for their own advantage"

"Self-interest motivates more powerfully and consistently than kindness, altruism(the big picture, general happiness for everybody) or martyrdom. Put succinctly: Society cannot rest its future on the noblest motives, but must use the strongest motives in the best possible way."

Then, the question that will eventually be brought to mind is that, if everyone charges ahead in his own direction, won't society resemble anarchy?

The answer to that question is no. The community will not only survive but it will thrive far more than any community with central planning. It will surprisingly surpass both in output and social harmony any economic system based on altruism.

For this Adam Smith offered an explanation :" He... neither intends to promote the public interest, nor knows how much he is promoting... he intends only his own gain, and he is in this, as in many other cases, led by an invisble hand to promote an end which was no part of his intention."

That, in my interpretation is the survival of the most adapt. The law of nature applies.

Those who like to own a copy of the book can find it at Amazon.com