Simplified Real-World Economics: A Practical Guide for Managers and Small Business Owners

Simplified Real-World Economics, by financial guru and best-selling author Michael Thomsett, dispels the myths and explains microeconomics and macroeconomics in an easy-to-understand manner. It’s supported by dozens of real-world examples from history and the author’s own first-hand experience, giving it the authenticity that too many books lack. This book is designed with the practical application of economic concepts in mind to help managers, engineers involved in product development, small business owners, and entrepreneurs make better professional decisions.

Author’s Note:

A business owner deals with economics every day. Questions about cash flow, customer needs and wants, production, wages, taxes—it all comes down to how economics are managed and how economic problems are anticipated and avoided. In other words, business owners are the ultimate economists of the world. Professional economists offer allegedly sage advice about all things economic. But, have any of them ever run their own business? Have any of them ever had to worry about economic survival, including threats of bankruptcy, business failure, home foreclosure, or meeting payroll? Chances are that few, if any, economists have a footing in the real world of business operations.

As the real economists of the world, business owners pay a role in educating others about how the economy really works. It is not efficiently controlled or influenced by the government, which—like economics in general—is populated by individuals who, in many cases, have never worked in the private sector or confronted the problems that business owners face every single day. A business owner has a great opportunity to educate—employees, fellow business owners, and family members—about how things really work.

For example, how many employees ever consider the problems that management faces in meeting this week’s payroll? Or paying for merchandise that is essential to marketing products?Or deciding whether or not to give out raises or bonuses? Chances are that employees have never considered these issues. Why? It is because a large segment of the population is blind to economic reality. This is true in the private sector, government, academia, and even among business owners in some cases. This blindness prevents a realistic understanding of everything concerning the immediate economy (microeconomics) as well as the national and international economy (macroeconomics).

This is the motive for writing this book. Because so many people (perhaps a majority) have never even confronted their own, immediate economic reality, they never have the chance to advance knowledge about how it all works. For most, the economy is like a shiny box that produces electrical current. What is inside the box? How does it work? What happens if it stops working and who will fix it? If the box continues working, these questions simply don’t come up; but they should. Knowledge is a powerful tool, and knowledge about the economy is essential to everyone who wants to be in control of their destiny, their financial health, and ultimately, their happiness and security.

This book is divided into three sections. The first section is introductory topics, three chapters exploring the basics and universal truths about economics. The second section is microeconomics, covering a range of topics of interest to business owners and consumers. The third section is macroeconomics, which includes matters pertaining to the entire country and the international community (inflation, employment, taxation, import/export policies). The book is designed to provide information about the economy as well as the underlying principles. The topics in this book are presented without complex and theoretical concepts that are of little interest to the typical business owner. Most business people want to know the bottom line of economics. How does it affect what I do daily? What outside influences help or hurt my operations? How can I anticipate next month’s economic impact? How can I compete effectively and maintain market share? How will I make cash flow next month?

These are the kinds of real-world questions that business owners ask daily—and these concerns are kept in mind on every page of this book. The purpose: to promote practical thoughts and not theoretical concepts. That is what the business owner needs. That’s what this book is designed to provide.

Contents:

• Basic Economics—Wants and Needs
• Managing Scarcity—Decisions
• Common Economic Myths
• Supply and Demand—How Markets Work
• The Microeconomics Business Cycle
• Production and Output
• Price and Elasticity
• Substitutes and Complements
• Factor Markets
• Marginal Analysis
• Organizations: Perfect Competition
• Competition and Economic Game Theory
• Market Structures
• Gross Domestic Product
• Unemployment and Labor Force Participation
• Inflation and Recession
• The Macroeconomics Business Cycle
• Consumption versus Savings
• The Role of Government

Simplified Real-World Economics: A Practical Guide for Managers and Small Business Owners By Michael C. Thomsett pdf