Basic Economics

I find money and economics to be somewhat boring subjects. But these are very important. They make the world go round, so to say. So these are very important. On social channels I noticed that many people say that engineers should but don’t often have good understanding of economics. So I think I am not alone there.

For quite long time, people around me seemed more knowledgeable than myself about these topics. But I could not trace their sources of knowledge. I mean people- in my circle- who talked about these topics eventually turned to Rich Dad- Poor Dad, Intelligent Investor, Psychology of Money, FU money, PE ratio, bonds, etc. And I’d quickly become disinterested. The main motive behind their interest in these topics seemed to be how to make more money in the share market.

Recently, I listened to a few podcast episodes in this area. For example, Amit’s ‘The Seen And The Unseen’ and Shruti’s ‘Ideas Of India’. They have had guests like Ajay Shah, Kelkar, MS Ahluwalia, Arvind Subramanian, Naushad Forbes, etc. I have half read Debt: The First 5000 Years, The undercover economist, and some bits and pieces here and there. Plus I have some idea about behavioral economics because of Kanhemann.

Last week or so I started listening to Thomas Sowell’s book Basic Economics. This is very much basic stuff. But the writing is quite easily understandable. And gives me what I was looking for- basic principles. The author is pro free market economy. And this (free market) mechanism is impersonal. Companies collapse but economy benefits. This impersonal aspect made me a bit defensive emotionally, though.

Well, I think this- lack of knowledge about these topics- is a big gap in my understanding of the world and I think it’d be better to start from the basics and principles. Let me know recommendations, if any. And next should I read counter opinions (Divide by Hickel?) or would that be an approach towards confusion?