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Thomas Sowell Basic Economics Summary

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As a student that is living in the time of an important election economic prosperity for our nation would be a really important. Hearing about the Great Depression and witnessing the Great Recession it would be horrible to see our nation fall back into what it once did. After reading Thomas Sowell Basic Economics: A Citizen’s Guide to the Economy he talked about to major factors that deal with the economy jobs and the effect of their wages. One of the first things that Sowell talks about in the beginning of this chapter is how the staving jobs would could have a negative effect on some industries. Sowell use the example of the steel industry “…saving jobs in the steel industry by restricting imports of steel from other counties does not mean that the economy as a whole will have more job” (Sowell 261). What he meaning by …show more content…
The reason being is that these companies have more expensive to cover unlike the other foreign companies as result making the steel cost more. In order to make the cost less they would have to find new ways to save money. Maybe these firms move to an automated assembly line and fire people who used to do those jobs. By these firms being forces to hire people it would not benefit the firm’s profits. Economics Today use the term voluntary exchange as “an act of trading, done on an elective basis in which both parties to the trade expect to be better off after the exchange”. In the instance of the firms there would not be a good use of voluntary exchange because in the end the frim would not befit because people would go somewhere else looking for cheaper products. The exchange between jobs and high cost of steel would

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