Economics in Two Lessons

Why Markets Work so Well, and Why They Can Fail so Badly

By: John Quiggin

Narrated by: Gildart Jackson

A masterful introduction to the key ideas behind the successes - and failures - of free-market economics

Since 1946, Henry Hazlitt's best-selling Economics in One Lesson has popularized the belief that economics can be boiled down to one simple lesson: market prices represent the true cost of everything. But one-lesson economics tells only half the story. It can explain why markets often work so well, but it can't explain why they often fail so badly - or what we should do when they stumble. As Nobel Prize-winning economist Paul Samuelson quipped, "When someone preaches 'economics in one lesson', I advise: go back for the second lesson." In Economics in Two Lessons, John Quiggin teaches both lessons, offering a masterful introduction to the key ideas behind the successes - and failures - of free markets.

Economics in Two Lessons explains why market prices often fail to reflect the full cost of our choices to society as a whole. For example, every time we drive a car, fly in a plane, or flick a light switch, we contribute to global warming. But, in the absence of a price on carbon emissions, the costs of our actions are borne by everyone else. In such cases, government action is needed to achieve better outcomes.

Two-lesson economics means giving up the dogmatism of laissez-faire as well as the reflexive assumption that any economic problem can be solved by government action, since the right answer often involves a mixture of market forces and government policy. But the payoff is huge: understanding how markets actually work - and what to do when they don't.

Brilliantly accessible, Economics in Two Lessons unlocks the essential issues at the heart of any economic question.

©2019 John Quiggin (P)2019 Blackstone Audio, Inc.

Excellent

Great book! I would have given 5 Stars, but the author has an incomplete, and (IMO) flawed analysis of Bitcoin.

simple

The simplicity of the definitions is remarkable. Complex Economic terms are reduced to everyday words

Excellent balanced text

The book is called Economics in Two Lessons in response to Henry Hazlitt's Economics in One Lesson as Hazlitt's book only focuses on microeconomics. The two lessons in this book are microeconomics and macroeconomics. It rightly asserts that both are important and explains both well.

Many economics texts are very dogmatic teaching only microeconomics or macroeconomics. This book discusses both as well and the interplay between microeconomics and macroeconomics. Highly recommended.

A little removed from reality

Over all the book is a good read. The author does a good job of presenting the economy from a different perspective. The focus on opportunity as the lens is great. The author diverges a little too much for my taste. He goes into a lot of left leaning progressive theories that are far removed from reality. It’s his writing so it’s no problem, my only issue is that he declares them matter of fact. Like when he says Donald Trump won the presidential election due to the extreme right using the current economic crises. Also when presenting a case for the lower income he presents all lower income people as not having opportunity. Nor does he take into consideration that some people are just lazy. As a Latino who comes from extreme poverty I can tell you hard working people can get a head in this country. The author presents the agenda that everyone is held down by corporations and ultra rich.

Sparkling clear author and reader.

Economics as a thriller? Or maybe as an operating manual for a fair, productive, and just society.