Dr. Roy Spencer has a new book out, and I’m happy to give him space on WUWT with a plug for it. Josh of cartoonsbyjosh.com did the cover art. Looks like Roy was funded by “big fire” in writing this book 😉 Anthony
FUNDANOMICS: The Free Market, Simplified
July 4th, 2011by Dr. Roy Spencer
I’m pretty excited that today (Independence Day, 2011) is the release date for my new book, Fundanomics: The Free Market, Simplified.
Our friend, Josh, did the cover art and it perfectly captures one of the book’s main messages: the greatest prosperity for ALL in a society is achieved when people are free to benefit from their good ideas.
In Chapter 1, A Tale of Two Neanderthals, Borgg and Glogg are the tribe’s firestarters, who get the idea to invent firesticks (matches). This leads to a system of trading with a neighboring tribe which has many great hunters, and as a result the inventors’ tribe never goes hungry again.
But the favored treatment the inventors receive from the tribe’s elders later leads to resentment in the tribe, and people forget how much better off they all are than before — even the poorest among them. Technology and prosperity might change, but human nature does not.
Simply put, a successful economy is just people being allowed to provide as much stuff as possible for each other that is needed and wanted. Economics-wise, everything else is details. When we allow politicians and opportunistic economists to fool us into supporting a variety of technical and murky government “fixes” for the economy, we lose sight of the fundamental motivating force which must be preserved for prosperity to exist: Liberty and the pursuit of happiness.
The main role of the government in the economy is help ensure people play fair…and then get out of the way.
I devote each chapter to a common economic myth.
For example, it’s not about money, which has no inherent value and is simply a convenient means of exchange of goods and services that is more efficient than bartering.
It’s not even about “jobs”, because it makes all the difference what is done in those jobs. Many poor countries have a much lower standard of living than ours, yet fuller employment. If we want full employment, just have half the population dig holes in the ground and the other half can fill them up again. The goal is a higher standard of living…not just “jobs”.
And the desire of some for a “more level playing field” and for “spreading the wealth around” is simply pandering to selfishness and laziness. The truth is that most of the wealth has already been spread around, in the form of a higher standard of living. If we do not allow the few talented and risk-taking people among us have at least the hope of personally benefiting in proportion to their good ideas, then economic progress stops.
The good news is that those few talented people need help, which is where most of the rest of us come in. One person with a new idea for a computer cannot design, manufacture, market, distribute, and sell millions of computers to the rest of society. They need our help, and in the process everyone benefits.
I also examine the role of various government economic programs, most of which end up hurting more than helping. A major reason why the government is so prone to failure is the lack of disincentives against failure in government service. In the real marketplace failures are not rewarded, which helps keep us on the right track to prosperity.
Even the truly needy in our country would be better off if we allowed private charitable organizations, rather than inefficient government bureaucracies to compete for the public’s donations.
I’ve been interested in basic economics for the last 25 years, but frustrated by the technical details (marginal costs, money supply, etc.) that too often scare people away from understanding the most basic forces which propel societies to ever high standards of living. Now, with our country facing tough decisions about our financial future, I decided it was time to stop yelling at the idiots on TV (and giving away all my ideas to talk show hosts) and put the material in a short — less than 100 pages — book that would be approachable by anyone.
I’ll be signing the first 500 copies. The price is $12.95 (including free shipping in the U.S.) You can see all of the chapter first pages at Fundanomics.org. I think this book would be especially valuable to homeschoolers.
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It is most unfortunate that my finances prevent me from purchasing the next 545 books and sending a copy to each of the members of Congress, the Supreme Court and the President. Only those who read and understand the text would be deemed qualified to hold their present position.
While they may not agree wholeheartedly with every premise, at least they would have removed the blinders which cause them to follow their party dogma without thought.
Happy 4th!
May you be able to remain independent from all of the things that weigh you down and still be surrounded by those you can depend upon.
You are going to release it on Kindle, aren’t you?
The big story going around MSM and clearly they are now blatantly admitting it “no global warming for past 10 years” BBC etc…. will really erode the AGW cause as they have been maintaining that ALL this wild weather is due to recent global warming….. caught lying! They are completely without any credibility. Surely this news should stop the Carbon Tax push in Australia?
Please kindle it and release it internationally.
The “progressives” (talk about a contradiction in terms, that left-wing statists are in favour of “progress?”) in the UK and the EU need to see those simple truths. Not that they would ever recognise them, of course. They still behave like they can borrow their way out of debt and tax the country into prosperity!
Roy,
I did a degree in economics and taught it for 10 years or so. I have enjoyed your forays into economics in earlier books, and remember thinking that your economics is at least as good and probably better than your climatology. I have a lot of trouble believing that there is a greenhouse effect at all. I can not conceive that clouds trap heat. But I would endorse you ideas on economics without reservation.
Governments don’t back winners. They legitimize and institutionalize waste.
As for the US, well, if it were to realize the advantage that it has enjoyed due to the fact that its currency has been accepted as an international means of exchange, and the free ride that accrues to the nation that enjoys that advantage, and that eventually the nation getting the free ride becomes fat and lazy because it is actually ‘undisciplined’ by market forces and you can see where that is heading. Ultimately, its best if we all….yes, all of us, earn our keep.
For as long as there have productive humans, there have been parasites (those along for a free ride). Unfortunately, given our swollen Western Governments, the revolving door between banking and government and needless organizations like the EU and UN, the parasites are now even larger than the host.
A most unhealthy situation that cannot last. We definitely need to get back to Fundanomics.
So Dr Spencer is a closet economist!
The ideas are excellent and the publication of Dr Spencer’s book is timely indeed. One of the aftershocks of the financial crisis, has been the myth that ‘capitalism has failed,’ and if we had but more regulation, everything would be so much better (a myth ruthlessly demolished by Thomas E Woods in his book ‘Rollback’).
Yet another myth is that we must all rejoice in the ‘green jobs’ that expensive renewable technologies are supposed to create. As Fundanomics explains, it is not about jobs per se, but about the quality of those jobs. Jobs that are unproductive are by definition low paid. A society of low paid albeit full employment is impoverished.
It is really obvious when you think about it, but sometimes, the obvious just needs to be said.
The book is correct, of course; but it is sad, even shameful, that these realities have to be written down to this level for people (hopefully) to understand. But if that’s the case then let the book be a tremendous success so we can survive for a little longer. Unless the free market principles are embraced quickly we will have the same situation as Greece recently has had.
This kindle thing does not a massive and well-appointed library make. There is something precious about the cover and pages of a book. You want to feel its textures and lay eyes on its print, in very real ways, over and over again. A kindle just doesn’t have a feel of permanency to me. I would most likely end up buying both. A download for my kindle, and the actual book.
Just ordered “Pamela”, the first book Benjamin Franklin published in America. I have read it. Want to own it. I requested an interlibrary loan and actually read a 75 year old copy several years ago. I would give anything to have such a copy. For now, a cheap knockoff will have to suffice.
“But the favored treatment the inventors receive from the tribe’s elders later leads to resentment in the tribe…”
Sounds like the society that demonized its own scientists for warning about human caused climate change. Such a shame. When will we ever learn?
This is my main problem (I didn’t say my only problem) with Michael Moore’s take on capitalism. In it’s basic form, capitalism is just people trading goods / services / expertise / currency etc to others for their goods / services etc. And government’s only job should be to ensure that a fair playing field exists, and the consumer is protected from unscrupulous providers. It’s true that there are lots of examples where companies get so big and influential that they don’t play by the rules any more. And this is what Moore always focuses on, in his relentless drive to prove capitalism is evil. Maybe, in some future utopia where there is plenty for all, socialism might become the way people live their lives, with true altruism for everyone. But in today’s real world, where selfishness, scarcity, greed, and jealousy actually exist, socialists fail to see that their grand vision is guaranteed to result in sloth, envy, and all sorts of other unattractive human behaviors. If we, as a species, ever hope to reach that mythical utopia, then the only way we’re going to get there is to allow and encourage the bravest, boldest, and smartest amongst us to reach for that brass ring.
“One person with a new idea for a computer cannot design, manufacture, market, distribute, and sell millions of computers to the rest of society. They need our help, and in the process everyone benefits.”
With the ongoing attack on our patent system under the guise of “streamlining”, the government / inventor relationship is being destroyed. The ramifications of the changes will cripple small inventors and make it impossible for them to succeed.
Example.
Changes from:
First to invent
To:
First to publish
Now it’s possible for the inventor to be cut out completely!
Gary says
The people you refer to would not read this book if it was written for 1st grade children. They are too busy watching American Idol or such and and cashing in their unemployment check or similar and living off working people. The number of these types that vote for politicians that continue this type of theft is rising due to bad immigration policies and corrupt politicians supporting “distribute the wealth” policies. Sorry-I’m frustrated.
The US government is currently subsidizing ethanol production in the US, while blocking Brazilian imports of lower cost ethanol. This raises costs in the US for both corn and ethanol, which hurt US industries and consumers that depend on these products, making the US less competitive in the world market.
While it can be argued that this is wrong, the elected officials are simply doing what is in their best interests, contrary to the larger interests of the people of the US. This process is repeated time and time again, and the economy becomes less and less efficient with each government intervention.
Pamela Gray says:
July 5, 2011 at 6:51 am
This kindle thing does not a massive and well-appointed library make. There is something precious about the cover and pages of a book.
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I agree. I am not anti-technology, but there is something to be said for traditional artifacts. I felt a bit of a loss when they took the card catalogues out of the libraries…
“Simply put, a successful economy is just people being allowed to provide as much stuff as possible for each other that is needed and wanted.”
The problem we face today is that governments are telling us what we should want and need.
Grizzled Bear says:
July 5, 2011 at 6:59 am
The only way that big companies can ever be a problem, is when they have the backing of govt.
Mike says:
July 5, 2011 at 6:55 am
Why shouldn’t scientists who lied in order to enrich themselves be punished?
Roy is a hero in climatology, but his economic advice is unwise. Making money from an invention is no more reliable than aiming to win the lottery or to be a rich rock star. The real money in invention goes to the marketers and patent poolers.
The old way of reaching financial security is vastly more reliable and vastly more available.
Live simply and cheaply, work steadily, save, save, save.
Just ordered a copy. After reading it myself, I plan to make my kids read it. I’ve been looking for something a little more accessible to kids than Economics in One Lesson. Hopefully this will be it.
But, Dr. Spencer doesn’t really believe Neanderthals existed, does he?
Mike says “Sounds like the society that demonized its own scientists for warning about human caused climate change. Such a shame. When will we ever learn?”
Mike, you have completely misunderstood the point of the book. Inventors improve the world by making it more efficient. Gobal warming alarmists are trying to make the world less efficient by making energy much more expensive. More expensive energy will inevitably increase poverty worldwide.
Thank you Dr. Spencer and Josh! You are becoming a fantastic homeschooling resource.
Roy Spencer
Thank you! Book ordered.