Naked Economics Book Report

Naked Economics Book Report

In the reviews for the book Kirkus Reviews said that “in just a few lessons,… Wheelman can teach the most innocent reader how to think like an economist.” While I was reading this book I found that statement to be true. Through all the examples and simplified explanations of the author, reinforcing a lot of the concepts learned in class was, actually, fun. And more than fun, it was very interesting to see how economics is applied in real cases. That made me realize how what I’m learning is all around me, and how I use to apply some of these concepts without realizing it.

About three decades ago, there was a new word that appeared to be in the mouth of everyone, some people liked, others didn’t; but many seemed to not understand it completely. That word is globalization. Being born and raised in Peru, a developing country, most people were scared that globalization was going to have a bad consequence in our economy, which was starting to grow. Some people said that globalization was going to make a lot of people lose their jobs, because carpenters, clothes makers, watch makers, etc. were going to go out of business because they were not going to be able to compete with the low prices of the products produced in other countries like China. People thought that globalization was going to create a bigger gap in between the rich people and the poor people. Now, after Peru has embraced globalization for more than a decade, all those fears are gone. The jobs that were lost were replaced with better ones, poverty was being reduced and we are the economy that is growing the fastest in South America. So the principles in chapter 12 can all be represented with the example of Peru. In chapter 2 the author says, “A market economy inspires hard work and progress not just because it rewards winners, but because it crushes losers.” Sure, globalization put some business out of the picture, but the owners of these businesses had to learn to adapt. Currently, bigger segments in the economy in Peru are the agriculture industry, the fishing industry, the miner industry and tourism; all of these industries being greatly benefited by globalization.

One of the parts that I really enjoyed was chapter 6. It was very empowering. Reading about productivity and human capital made me think: what can I do to increase my human capital? In the book, after explaining what human capital is, Wheelman gives the example that human capital is “what you would be left with if someone stripped away all your assets… and left you on a street corner with only the clothes on your back” and right after that he asks “How Bill Gates would fare in such a situation?” and the answer is what really got to me “Very well.” That just encourages me to try to learn more, to be a better person. In order to differentiate myself from others, in the market, I need to have skills that others don’t. Or even better, have

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