CONTRIBUTORS
NIALL KISHTAINY, CONSULTANT EDITOR
Niall Kishtainy teaches at the London School of
Economics and specializes in economic history and
development. He has worked for the World Bank and
the United Nations Economic Commission for Africa.
GEORGE ABBOT
George Abbot is an economist who worked in 2012 on
Barack Obama’s presidential reelection campaign. He
previously worked with Compass, the influential UK
think tank, on strategic documents such as Plan B:
A New Economy for a New Society.
JOHN FARNDON
John Farndon is the author of many books on
contemporary issues and the history of ideas,
including overviews of the booming economies
of China and India.
FRANK KENNEDY
Frank Kennedy worked for over 25 years in
investment banking in the City of London as a
top-ranked investment analyst and as a managing
director in capital markets, where he led a European
team advising financial institutions. He studied
economic history at the London School of Economics.
JAMES MEADWAY
Economist James Meadway works at the New
Economics Foundation, an independent British
think tank. He has also worked as a policy adviser
for the UK Treasury.
CHRISTOPHER WALLACE
Christopher Wallace is Head of Economics
at the UK’s prestigious Colchester Royal Grammar
School. He has been teaching economics for more
than 25 years.
MARCUS WEEKS
Marcus Weeks studied philosophy and worked as a
teacher before embarking on a career as an author.
He has contributed to many books on the arts and
popular sciences.
CONTENTS
10 INTRODUCTION
THE AGE
LET THE TRADING OF REASON
BEGIN 1770–1820
400 BCE–1770 CE 52 Man is a cold, rational
calculator
20 Property should be Economic man
private Property rights
54 The invisible hand
22 What is a just price? of the market
Markets and morality brings order
Free market economics
24 You don’t need to barter
when you have coins 62 The last worker adds
The function of money less to output than
the first
26 Make money from money Diminishing returns
Financial services 66 Divide up pin
63 Why do diamonds cost production, and you
30 Money causes inflation more than water? get more pins
The quantity theory of money The paradox of value The division of labor

34 Protect us from 64 Make taxes fair 68 Population growth

foreign goods and efficient keeps us poor
Protectionism and trade The tax burden Demographics
and economics
36 The economy can be
counted Measuring wealth 70 Meetings of merchants
end in conspiracies to
38 Let firms be traded raise prices
Public companies Cartels and collusion

39 Wealth comes from 74 Supply creates its

the land own demand
Agriculture in the economy Gluts in markets

40 Money and goods flow 76 Borrow now, tax later

between producers and Borrowing and debt
consumers The circular
flow of the economy 78 The economy is a yo-yo
Boom and bust
46 Private individuals never
pay for street lights 80 Trade is beneficial
Provision of public goods for all
and services Comparative advantage