About the Best Modern Primer on Economics: Robert P. Murphy's "Lessons for the Young Economist"

I need to take this moment to recommend Robert Murphy's Lessons For the Young Economist.

Written in clear, unassuming prose, Murphy explains both theory and practice. Unlike other economic texts, it is witty and approachable. You should check it out even if you've never liked economics. Even if you've taken some economics courses, go buy it. If you think that economics is too convoluted and inaccessible to laymen, then this book will change your mind.

Here is the table of contents:

PART I: FOUNDATIONS

1. Thinking Like an Economist . 3

1. Thinking Like an Economist 3
2. Is Economics a Science? . 5
3. The Scope and Boundaries of Economic Science . 5
4. Why Study Economics? . 8

2. How We Develop Economic Principles . 13

1. Purposeful Action versus Mindless Behavior 13
2. The Social versus the Natural Sciences 15
3. The Success of the Natural Sciences versus the Social Sciences 17
4. How We Develop Basic Economics 22

3. Economic Concepts Implied By Action . 31

1. Introduction 31
2. Only Individuals Act 32
3. Individuals Have Preferences 36
4. Preferences Are Subjective 37
5. Preferences Are a Ranking, Not a Measurement Using Numbers 39
6. Different Individuals’ Preferences Can’t Be Combined . 42

4. “Robinson Crusoe” Economics . 49

1. Introduction 49
2. Crusoe Creates Goods With His Mind Powers 50
3. Consumer Goods versus Producer Goods 52
4. Land, Labor, and Capital Goods . 53
5. Income, Saving, and Investment . 55
6. Goods Are Valued Unit by Unit 59
7. Pulling It All Together: What Should Crusoe Do With Himself? . 61

PART II: CAPITALISM: THE MARKET ECONOMY

5. The Institution of Private Property 71

1. Society Requires Rules . 71
2. Capitalism: This Is Private Property 73
3. The Market Economy and Free Enterprise . 74
4. 6. Direct Exchange and Barter Prices 81
5. Why Do People Trade With Each Other? 81
6. Direct Exchange / Barter . 82
7. Prices 83
8. How Prices Are Formed in Barter . 84

7. Indirect Exchange and the Appearance of Money . 99

1. The Limitations of Direct Exchange . 99
2. The Advantages of Indirect Exchange . 101
3. The Advantages of Money 104
4. Who Invented Money? 106

8. The Division of Labor and Specialization 113

1. The Division of Labor and Specialization . 113
2. Why Specialization Makes Labor More Productive . 115
3. Enriching Everyone By Focusing on Comparative Advantage . 117

9. Entrepreneurship and Competition . 125

1. Entrepreneurship 125
2. Competition Protects Customers 127
3. Competition Protects Workers . 128

10. Income, Saving, and Investment 135

1. Income, Saving, and Investment . 135
2. Investment Increases Future Income 136
3. How Saving and Investment Increase An Economy’s Future Output . 141

11. Supply and Demand . 147

1. Supply and Demand: The Purpose . 147
2. Demand: Its Definition and Its Law . 148
3. Supply: Its Definition and Its Law 153
4. Using Supply and Demand to Explain the Market Price 155
5. Using Supply and Demand to Understand Price Changes .159

12. Interest, Credit, and Debt . 175

1. Interest: It’s About Time 175
2. Savings, Investment, and Economic Growth . 177
3. Common Credit Transactions 180
4. The Pros and Cons of Debt . 183

13. Profit and Loss Accounting 191

1. Profit and Loss Guide Entrepreneurs . 191
2. Interest Versus Profit 193
3. The Social Function of Profit and Loss Accounting 195
4. The Limits of Profit and Loss Accounting . 199

14. The Stock Market . 205

1. The Stock Market 205
2. Why Issue Stock? (Debt versus Equity) . 206
3. The Social Function of Stock Speculation 209

PART III: SOCIALISM: THE COMMAND ECONOMY

15. The Failures of Socialism—Theory . 221

1. The Vision of Pure Socialism 221
2. Socialism’s Incentive Problem . 223
3. Socialism’s Calculation Problem . 229

16. The Failures of Socialism—History . 239

4. Economic Theory and History . 239
5. Communism vs. Fascism 241
6. Socialism’s Body Count . 242

PART IV: INTERVENTIONISM: THE MIXED ECONOMY

17. Price Controls 255

1. The Vision of Interventionism . 255
2. Price Ceilings . 256
3. Price Floors . 261

18. Sales and Income Taxes 271

1. Government Spending 271
2. How Government Finances Its Spending . 275
3. Sales Taxes 277
4. Income Taxes 279

19. Tariffs and Quotas . 287

1. Mercantilism 287
2. The General Case for Free Trade . 289
3. Tariffs . 293
4. Import Quotas . 299

20. The Economics of Drug Prohibition 305

1. Drug Prohibition . 305
2. Drug Prohibition Corrupts Government Officials 307
3. Drug Prohibition Fosters Violence 314
4. Drug Prohibition Reduces Product Safety 320
5. Money Inflation vs. Price Inflation . 325

21. Inflation . 325

1. How Governments Make Prices Rise . 329
2. The Danger of Government Price Inflation 336

22. Government Debt 345

1. Government Deficits and Debt 345
2. Government Debt and Inflation 350
3. Government Debt and Future Generations 353

23. The Business Cycle 361

1. The Business Cycle . 361
2. How Governments Cause the Business Cycle . 363
3. The Inevitable Bust Following an Artificial Boom 368
4. The Causes of Mass Unemployment 369

Glossary 377