A well-known American economist believes that, making a choice, a person stops at the best of the possible options. It is based on a comparative assessment of expected benefits, taking into account costs. Within the framework of such a concept, the human individual prefers to take only those actions that, as he thinks, can bring him the greatest benefit in its pure form, minus costs. The more serious the economic rationale for this choice will be, the more likely it is that the action is rational.
What is this book?
With the theory set forth in the work of Paul Heine, everyone has control. The book is written simply and clearly. It sets out economic theory in an accessible language for the average person. Paul Heine in his book "Economic Thinking" very interestingly talks about the processes of the global economy. The language he speaks is very easy and accessible. We can safely say that it was not so easy to talk about cash flows with us before the release of this book.
The American economist became famous for his unconditional and devoted love for the economy. For a long time he was a lecturer at various universities. As a result, Heine came to the conclusion that much of the theoretical material is completely incomprehensible to a simple person. Everything is too complicated written, so you can get confused in the maze of theoretical explanations. In fact, all economic processes are simple and transparent. The main thing is to understand their essence. Only the essence of any subject, the main root, and not the surface husk, can reveal to us all the secrets of its proper use.
It was then that a book appeared, entitled "Economic Thinking," written by an economist. He adored his subject, and this can be felt through the text. P. Heine loved to travel around the world and teach the basics of economic theory to all who desired it.
What kind of person is he?
This writer and economist has many like-minded fans at the same time. At the same time, Paul was always a friendly and open person. It was not difficult for him to interview. He enjoyed communicating with fans with great pleasure and answered letters that came to him. Heine was respected and respected by both teachers and students.
Perhaps due to his charisma and simplicity of his soul, Paul revealed a secret to the study of economic theory. This is clearly seen from the content of the book “Economic Thinking,” which can change the mind of any person, opening him the world of money in a new light.
The professor always wrote scientific articles and notes, which he published in print. Until his death, he explained the ongoing global macroeconomic processes and commented on them in television stories.
Very simple about economics
Incredibly, an economic way of thinking of a person can be formed without resorting to a complex conceptual apparatus of scientific terms. Thanks to the reading of the book by P. Heine, things such as:
- the origins of the origin of crises;
- processes on which inflation depends;
- ways to protect yourself from the "financial hole";
- ways of real and quick doubling of capital;
- processes affecting the course of economic events in the world;
- what the economy does not tolerate.
This textbook should definitely be taken into account for students in faculties related to economic science. It will be useful to ordinary people who are interested in the nature of everything that happens in the economy.
The essence of the book
The writer does not teach how to change the fate of the state in terms of the economic situation, but talks about how to live in this situation, predict the crisis, get out of it and what to rely on at different times. This whole theory will help shape an economic mindset. Paul Heine has repeatedly emphasized that with an understanding of the whole essence of the economic system of the world, it becomes easier to manage your own wallet.
Examples of the right approach are offered in the book. Taking them into service, we can expect that the money will cease to be sand, pouring through your fingers for some reason.
The economic way of thinking formed through the knowledge gained will help in this. Paul Heine explained how millions of people manage to achieve extraordinary coordination of their actions. Indeed, it is this quality that is characteristic of the modern industrial economy. To produce a huge number of complex benefits, a high degree of coordination of their efforts is required.
What is important?
Time is fleeting. I do not want to spend it on the study of complex concepts that may turn out to be irrelevant by the time they are mastered. Therefore, the book Economic Thinking is so important. The reviews left after reading it suggest that you can quickly and accurately understand the theoretical material. After all, whatever one may say, but without theory there is no practice.
People do not often ask questions about where all the miracles of coherence and coordination in modern society arise that make it possible to satisfy our urgent needs. We take modern goods and luxury goods for granted, without reflecting and not interested in how they arise.
This is what Heine Paul is thinking about. The economic way of thinking of a person makes it possible to understand that in the world there is nothing that happens automatically. Consistency on a colossal scale is achieved thanks to the presence of important premises. And we humans, in our ignorance, often destroy these very premises or prevent them from developing. As a result, we cannot later understand why our economic system suffers a sudden collapse.
That is why the book “Economic Thinking” is so important. Paul Heine makes it clear that knowledge and understanding of the theory in this area are beneficial primarily because they are able to explain the very processes of coordination in society, to identify the prerequisites that allow them to develop successfully.
When writing his work, the professor set himself the goal of expounding a conceptual framework that facilitates the ability to understand the processes of achieving consistency between millions of people, even strangers.
In addition, he shows the reason for the disagreement that contributes to the destruction of this integrity. And this is also valuable knowledge, the possession of which allows those who own the levers of society management to bring chaos and provoke disasters. If the rulers set themselves the goal of coherence, then do not neglect the knowledge that Paul Heine told us in his book: "An Economic Way of Thinking." Reading it is easy and interesting. Of course, this is a very important economic work.
He calls for a better understanding of institutions that ensure coherence in society and contribute to the achievement of prosperity, social harmony and freedom.
It is important to understand that economic theory is not a set of ready-made recommendations that can be applied directly in economic policy. It is only a method, an intellectual tool, a thinking technique that helps its owner come to the right conclusions.
In fact, many teachers understand that it is not difficult to conduct a course in economic theory, since there is so much information that filling the school day is not difficult. No need to invent anything, a list of special terms and their explanation already provide the basis for compiling a full course of lectures. However, what are the results? After all, it is important that these concepts bring new-born specialists into life, how will society develop further, can these people understand the depth of processes and cause-effect relationships? Will they want and, moreover, can achieve social harmony?
What is characteristic of an economic way of thinking? What ideas does it include?
First of all, these are the views and concepts obtained as a result of practical activity. This is the experience of people from everyday economic life. Based on economic thinking in practice, and not on the knowledge of action and the use of socio-economic laws. In his work, Heine fills the economic way of thinking with a different socio-economic meaning. It is involved in connection with real practice. And economic consciousness is associated with knowledge of the functioning and development of socio-economic laws.
Thus, economic thinking can be considered as a form of manifestation of economic consciousness regarding a specific social situation.
The fact is that not all knowledge in this field is involved in the circulation, but only those that are directly applied in practice. This is the economic way of thinking. The book in question in this article reveals the above issues.
Such thinking is closely linked to the economic interests of people. It is formed under the influence of objective factors in the development of the economy, the state of social consciousness, the participation of the able-bodied population in economic transformations and, without a doubt, discards the superfluous, taking only the main thing from a wide range of possibilities.
What's the point?
The main idea is to fix attention on how to make a choice, what it should be. Here the main emphasis is on the individual. The primary characteristic of this way of thinking is the calculation of benefits and costs. It is on this basis that economic behavior is based.
Individuals pursue their own goals. They adapt to each other's behavior. However, each of them follows certain game rules and property rights. This determines the choice of an individual.
The essence of the economic way of thinking, Paul revealed in his lectures on several sides. He wanted to give the opportunity to become educated in this field to as many people of various professions as possible. The fact is that we are all participants in the economic processes taking place in the world community. And the situation in particular and in general depends on how our consciousness will be.
The essence of economic thinking
We will bring out several important aspects:
- Labor is a necessity and a condition for self-realization of an individual, and attitude towards him is expressed in terms of the development of practical efforts and subjective motivators aimed at improving abilities. Indicators are attitudes, stereotypes, and motives for advanced training along with facts of economic behavior inspired by these motives.
- Attitude to various forms of ownership is also reflected in the indicators of practical use and its subjective perception. Indicators are the elements of thinking, showing ideas about the effective use of social wealth.
- The manifestation of the attitude towards management is seen in the indicators of the position of workers and their ability to influence decisions related to the organization of production, social and material support, and incentives. In addition, indicators of participation activity in the management of collective, sectoral, regional and public affairs are taken into account. Indicators are people's judgments about the effectiveness and democratic management, about the leadership’s ability to solve pressing issues, as well as the active participation of workers in practical forms of management.
This is the main content that has an economic way of thinking.
Book Reviews
People who have studied the work of the American economist believe that it helps to understand much faster the principles of analysis, systematization and adjustment of knowledge obtained daily from various information sources. An important point they note is the ability to apply tools of economic thinking almost unlimitedly. The book provides an opportunity to understand and evaluate all the processes taking place in the socio-economic sphere. Many students remained grateful to the professor of economics, who opened the world of knowledge to them in such a simple and affordable way.
Intelligent tool
The knowledge gained through this book helps to learn to recognize the order. The transport movement demonstrates ignoring public cooperation. But at the same time, we are all much more dependent on coordination mechanisms than we can assume. Members of the society serve for each other as an incentive to carry out a set of interrelated actions leading to the result necessary for the acquisition of tangible and intangible benefits.
Economic thinking refers to an approach. Ready-made rules do not play a decisive role here. No, people are not absolute egoists who are overly materialistic and are only interested in money without sensitivity to everything else. Economic theory suggests that, acting in one's own interests, a person creates the possibility of choice for others. And the process of continuous mutual adaptation to changes - this is social coordination.
Economic thinking is biased. It focuses on the choice. The main goal of the book, which is discussed in the article, is to teach the reader to think like economists. The task is achieved simply and easily. Do not believe? Then pick up this book and read it.