Economics is too important to be left to the economists. This book provides the information you need to understand how capitalism works (and how it doesn't). Through clear bite-sized chapters interspersed with illuminating illustrations, this is an antidote to the abstract and ideological way that economics is normally taught and reported on in in media. Key concepts such as finance, competition and wages are explored, and their importance to everyday life is revealed. It answers questions such as 'Do workers need capitalists?', 'Why does capitalism harm the environment?', and 'What really happens on the stock market?'. The book is supported with a comprehensive set of web-based course materials including videos for popular economics courses. “Stanford is that rare breed: the teacher who changed your life. He has written a book―both pragmatic and idealistic―with the power to change the world.” -- Naomi Klein, author of This Changes Everything: Capitalism vs. the Climate and No Logo. "Is economics the 'dismal science'? Not in Jim Stanford's capable hands. If we are to have better economic policies in the future, 'everyone' needs a guide, and this one is short but sweet." -- Lars Osberg, Dalhousie University "Jim Stanford has provided a highly readable yet rigorous guide to the economics of capitalism. It is to be commended for its comprehensive yet critical coverage--from work to globalization, from the environment to high finance." -- Malcolm Sawyer, University of Leeds "Jim Stanford has written a wonderfully accessible and useful book for union activists or anyone else who wants to learn about how the economy works in order to change it." -- Thea Lee, deputy chief of staff, AFL-CIO Jim Stanford is economist for Unifor, Canada’s largest private-sector trade union and an economics columnist for the Globe and Mail . Economics for Everyone A Short Guide to the Economics of Capitalism By Jim Stanford, Tony Biddle Pluto Press Copyright © 2015 Jim Stanford All rights reserved. ISBN: 978-0-7453-3577-3 Contents Acknowledgements, ix, Introduction: Why Study Economics?, 1, Part One: Preliminaries, 1 The Economy and Economics, 15, 2 Capitalism, 31, 3 Economic History, 41, 4 The Politics of Economics, 52, Part Two: The Basics of Capitalism: Work, Tools, and Profit, 5 Work, Production, and Value, 63, 6 Working with Tools, 79, 7 Companies, Owners, and Profit, 90, 8 Working for a Living, 105, 9 Reproduction (for Economists!), 118, 10 Closing the Little Circle, 127, Part Three: Capitalism as a System, 11 Competition, 137, 12 Business Investment, 148, 13 Employment and Unemployment, 158, 14 Inequality and its Consequences, 168, 15 Divide and Conquer, 183, 16 Capitalism and the Environment, 195, Part Four: The Complexity of Capitalism, 17 Money and Banking, 213, 18 Inflation, Central Banks, and Monetary Policy, 235, 19 Paper Chase: Stock Markets, Financialization, and Pensions, 250, 20 The Conflicting Personalities of Government, 266, 21 Spending and Taxing, 279, 22 Globalization, 296, 23 Development (and Otherwise), 312, 24 Closing the Big Circle, 324, 25 The Ups and Downs of Capitalism, 333, 26 Meltdown and Aftermath, 343, Part Five: Challenging Capitalism, 27 Evaluating Capitalism, 361, 28 Improving Capitalism, 371, 29 Replacing Capitalism?, 383, Conclusion: A Baker's Dozen: Key Things to Remember, 399, Index, 403, CHAPTER 1 The Economy and Economics Take a walk The economy must be a very complicated, volatile thing. At least that's how it seems in the business pages of the newspaper. Mind-boggling stock market tables. Charts and graphs. GDP statistics. Foreign exchange rates. It's little wonder the media turn to economists, the high priests of this mysterious world, to tell us what it means, and why it's important. And we hear from them several times each day – usually via monotonous "market updates" that interrupt the hourly news broadcasts. Company X's shares are up two points; Company Y's are down two points; the analysts are "bullish"; the analysts are "bearish." But is all that financial hyperactivity really what the economy is about? Is economics really so complex and unintelligible? Should we trust the "experts" and analysts at all? Maybe we should find out what's going on for ourselves. Forget the market updates. Here's a better way to find out about the economy your economy. Take a walk. And ask some questions. Start at the front door of your own household. How many people live there? What generations? Who works outside the household, and how much do they earn? How long have they been working there? How long do they plan to keep working, and how will they support themselves when they retire? What kind of work goes on inside the household? How many hours? Is it paid or unpaid, and who does it? Who does which chores? Are there any children? Who cares for them? Does anyone else in your home require care? Do you own your house or apartm