Front Matter: Copyright, Disclaimer, Acknowledgements
List of Figures
List of Tables
Preface
Notes for the Reader
PART I: Understanding the Economy We Have
1 Introduction – not for lemmings
1.1 What Is Economics
1.2 Why the Economy Matters
1.3 Questions Part 1 Aims to Answer
2 Economy Fundamentals
2.1 The Ingredients of Production
2.2 Level of Production
2.3 Fluctuations in the Level of Output
2.4 Maximum Production Possible
2.5 Growth in the Maximum
2.6 Summary
3 Rules for a Social Economy
3.1 Ownership
3.2 Trade
3.3 Value
3.4 Government
3.5 Degree of Government Control
3.6 Summary
4 Markets
4.1 Market Operation
4.2 Market Idealism
4.3 Summary
5 Market Exchanges
5.1 A Simple Exchange Economy
5.2 Effects of a Change in Demand
5.3 Effect of a New Product
5.4 Employment
5.5 Effects of Using Money to Carry Out the Swaps
5.6 Optimum Swapping
5.7 Summary
6 Life in the Market Economy
6.1 Horse, Gentleman and Citizen!
6.2 Earning a Living – a game with rules
6.3 Go Forth and Sell Yourself
6.4 Playing the Game to Get Rich
6.5 Game Outcomes
6.6 Summary
7 Dynamics of the Economy: The Labour Market
7.1 The Economy as a System
7.2 Will there be Enough Jobs?
7.3 No Guarantee of Labour Market Clearing
7.4 Summary
8 The Classical Labour Supply and Demand Diagram
9 Dynamics of the Economy: How Labour Demand is Increased
10 Dynamics of the Economy: Growth
11 Dynamics of the Economy: Booms and Slumps
12 Connecting Economies
13 Environmental Impact of the Market Economy
13.1 Why Do We Do It?
13.2 The Earth is Used for Free
13.3 Internal and External Costs
13.4 Can a Service Economy Save the Environment?
13.5 Can Consumers Protect the Environment?
13.6 The State and the Citizen
13.7 Summary
14 How the Economy Shapes Society
14.1 How the Economy Affects Our Lives as Workers
14.2 How the Economy Affects Our Lives as Consumers
14.3 How the Economy Affects Our Lives as Citizens
14.4 Summary
15 Spending Alone or Together – Private or Public
16 Market Impact on Communities and their Responsibilities
17 The Tragedy of the Commons
18 Theory of Comparative Advantage
19 Inequality
20 Planned Economies
21 Long Term Investment and Discounting the Grandchildren
22 The Finance Sector
23 Inflation and Money Supply
24 What We Have Learnt and Where We are Heading
24.1 Overview of the Analysis So Far
24.2 Given the Analysis, Where Are We Heading?
24.3 We Are Not Addressing the Real Threats
24.4 Summary
PART II: A Fairer and More Sustainable Economy
25 Changing Direction: Introduction
25.1 The Logic
25.2 Policy Overview
25.3 Summary
26 Changing Direction: Livelihoods
27 Changing Direction: Reducing Environmental Impact and Protecting the Natural World
28 Changing Direction: The Politics
29 Stop the World – Let Me Off
End Notes
Bibliography
Index