The World's Best Book Summaries
What does it mean to get a “good deal” on a product? What’s the natural price of a good? When supply and demand are in equilibrium, goods will be sold for their natural price. Adam Smith explains that the natural price is the cost of bringing a good to market. He discusses this concept in his classic work The Wealth of Nations. Read more to understand natural price and the three primary costs that determine it.
What role does self-interest play in capital lending? How is it good for the economy as a whole? According to Adam Smith, capital grows a nation’s wealth. He identifies two main reasons. First, the self-interest of the capital lender encourages them to invest in productive labor. Second, the self-interest of the lender guides them to invest in less-developed portions of the economy and help them develop. Keep reading to learn how lending capital for profit plays an essential role in growing the wealth of nations.
Why are prices so high right now? When will inflation go down? Will prices go back to normal anytime soon? Inflation, which took off in 2021, has surprised economists with its durability, remaining at levels not seen in 40 years. Recently, though, it’s started to decrease—however, prices for everything are so high that consumers are left wondering if they’ll ever return to normal. Read on to learn why prices are so high right now and what economists predict will happen in the coming year.
Do embargoes lead to smuggling? Does trade benefit both countries? Is a trade deficit a bad thing? Adam Smith disagrees with restricting international trade for three reasons. He argues that it incentivizes smuggling, redirects domestic capital towards inefficient industries, and prevents countries from entering into mutually beneficial trade relationships. Continue reading for an overview of Adam Smith’s theory of international trade.
What happens when the government meddles with the economy? What do regulated markets produce (or fail to produce)? The development of a nation’s wealth depends on competitive markets in which participants are free to act in their own self-interest. In The Wealth of Nations, Adam Smith identifies government policies that interfere with this process and slow down economic growth. We’ll explore two regulated market policies that Smith critiques: restricting international trade and subsidizing industries.
What should the government spend money on? What should its priorities be and why? In The Wealth of Nations, Adam Smith discusses what he thinks are the best ways to grow a nation’s economy. Since growth is the goal, Smith opposes most public spending. He outlines two criteria for what he considers proper government expenditures. Only four things meet these criteria. Let’s take a look at what makes the cut and why.
How is ethical taxation achieved? How can taxes be less disruptive to the economy? In The Wealth of Nations, Adam Smith shares his general principles for how taxes ought to be collected and assessed. He also analyzes specific forms of taxation in light of his principles and explains how each tax is problematic in its own way. Let’s review Adam Smith’s principles of taxation and his analysis of three common tax policies.
According to Adam Smith, how are humans different from dogs? What’s the real price of something? How did Smith regard taxation? Adam Smith, an 18th-century Scottish philosopher, is widely considered one of the founding fathers of capitalism. Published in 1776, his book The Wealth of Nations makes the case for free markets and individual self-interest as the best ways to grow a nation’s economy. Continue reading for several quotes from The Wealth of Nations that give you a good idea of the book’s ideas.
How does the government raise money? Are taxes necessary? From whom does the government borrow money? Before governments can spend money on defense, justice, education, or transportation infrastructure, the money needs to come from somewhere. In The Wealth of Nations, Adam Smith identifies two principal sources of revenue: taxation and borrowing. Continue reading to learn about these two methods of raising money.
Who are the Illuminati? What do they want? How do they intend to get it? According to William Cooper, Illuminati operatives are everywhere, and they always have been. They’re getting all of their ducks in a row and will one day establish a global totalitarian socialist state—the New World Order. Continue reading to learn about the Illuminati’s goals and methods, according to Cooper.