naked economics: Undressing the Dismal Science by Charles Wheelan

Rating(1-10): 5

Overall Summary

The book is glib. It tells stories and parrots conventional wisdom. It doesn't teach you
much about economics that one wouldn't learn on your own. No insights. No doesn't seem to
think his readers are very intelligent or can understand much. He doesn't give references
on things that need them.

Chapter Summaries

1: The Power of Markets

Meandering introduction to markets, utility, market price, etc. Lots of bald statements
and glib stories with no evidence or references.

2: Incentive Matter

More stories, this time about incentives. Why they matter and why it is hard to fix markets
that have bad outcomes because of bad incentive structures. He repeats Steven Levitt's story
about real estate brokers. On p. 33 (bottom) "Economics teaches us how to get incentive right."
but the whole chapter is stories about how attempts to change incentives have failed.

3: Government and the Economy

Discussion of externalities and how governments can compensate for them. Also the role of
government in ensuring fair markets, enforcing property rights, enforcing contracts,
regulation, etc. Governments provide "public goods".

4: Government and the Economy II

The bad side of government. Some good points but mostly stories that don't prove anything.
Lots of glib platitudes, like the USPS is way more inefficient than UPS or FedEx. Some
interesting points about regulation and taxes.

5: Economics of Information

Some good points about adverse selection and issues with incentives. Discussion of the
economic problems with health care. Good discussions of brands and profiling.

6: Productivity and Human Capital

Good discussions of the importance of education and why talented people are paid more.
Discussion of productivity, some confused parts. Discussion of income/wealth inequality.

7: Financial Markets

Good but shallow discussion of financial markets.

8: The Power of Organized Interests

Stories about subsidies gone wrong. Okay but, again, shallow.

9: Keeping Score

Good joke on p. 149. Business cycle, growth, GDP. A bit about Keynes. Fiscal and monetary policy.

10: The Federal Reserve

Reasonable discussion of the Fed, inflation, and deflation.

11: Trade and Globalization

Reasonable but shallow discussion of trade, globalization, etc. He repeats conventional
wisdom and doesn't get into any of the hard issues. Very weak discussion of comparative
advantage, which is central.

12: Developmental Economics

Generally good discussion of what it takes to develop a country.

Epilogue: Life in 2050

Some good questions.