Swallowing Economics

Economics was one of my least-favorite courses in college, and I've tended to shy away from economic books since then. Given the enormous financial upheavals of the past six months, I've decided I better brush up.

Economist Paul Krugman impressed me during several of the pre-elections debates I watch on the media, so I've decided to start with him. When I start reading an author, I try to start with their early work and come up to date.

Hence, my notes on:

THE AGE OF DIMINISHED EXPECTATIONS
By Paul Krugman (1990).


“The beginning of action must, however, lie in understanding.” (p. xii)

There are only three important factors for the US economy:
1. Productivity.
2. Income Distribution
3. Unemployment

“Indeed, for the median American worker there has been no increase in real take-home pay since the first inauguration of Richard Nixon.” (p. 1)

“When Ronald Reagan was elected, the supply-siders got a chance to try out their ideas. Unfortunately, they failed.” (p. 16)

"[During the '80's] The ranks of the extremely well-off were reinforced by the vast fortunes made by traders and investment bankers on Wall Street and by huge increases in executive compensation. Meanwhile, the amount of sheer misery in America has surely increased much faster than the official poverty rate, as homelessness and drug addiction have spread." (p. 20)

“The 1980’s have been an era in which fabulous fortunes have been made in corporate finance.” (p. 154)

“Americans no longer expect much from their economy or from the politicians who manage it.” (p. 169)

“Looking back from the year 2010, we will surely marvel at our stupidity in 1990.” (p. 170)