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New Ideas from Dead Economists Book Report

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In reading “New Ideas From Dead Economists” I came away with a different perspective not only on Economics as a whole but also on economists. I found it very interesting that the fiber that made the human being also contributed to the profound ideas of each specific economist and helped form our current understanding of economics. Starting with Adam Smith, in his approach to write a book in “his spare time” gave a full and thorough perspective on the world. For example, when he suggested that people are not motivated only by self-interest but just that they are the most powerful and consistent compared to kindness, altruism or other noble motives. I found it interesting how he examined the way people were and not how he wanted them to be and then he based his theories off of that concrete evidence. I had always thought that Adam Smith believed more like Gordon Geiko that “Greed is good”, this book helped me see that self-interest is simply the most consistent of motivators.. Another economist that I found rather compelling was Maynard Keynes. The simple fact that he struggled to stay out of debt and had creditors coming after him constantly made me chuckle as I imagined this had a big impact on his ideas and theories. I understand better the Keynes theory now and realize that “we are all Keynesian” in a way. One thing I never understood before was how politicians could campaign on spending money without promises to pay it back. This section of the novel helped me understand that Keynesian economics is not only spending to spur on the economy but it is also saving and reducing the deficits when the economy is strong. This is a very compelling argument and altered the way I think about economics. It helped me relate it to my own life; I am currently spending more than I take in as a student paying for an education in the hopes that one-day I will be able to have a solid income to pay down my debts. It seems to me that it should work on a national scale as well although I don’t remember a time when politicians have been adamant about paying down debt as opposed to merely talking about it. The immigration topic was also something that was eye opening for me in this book. I had never compared Irish racism in early America with the denouncement of newcomers that we see today. It made me think that possibly we are to harsh on those who would like to come here and that ultimately their impact will be positive for the economy. I thoroughly enjoyed this book and am for the first time interested in exploring the original works of the mentioned economists. It is eye opening to see how their ideas and courage to spread them has changed the world so profoundly and continues to do so today.

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