Book Review V: A Mind for Numbers

Overall rating: 4/5

Estimated Reading Time: 4.5 hours 

• (269 pages, ~ 1 minute per page)

Disclaimer:

• My primary reason for summarizing A Mind for Numbers is to complete my final project for the book’s associated Coursera massive online open course (MOOC). It is worthy of making my Recommended Reading List, however without the need to complete a final project I would have chosen another book to review.
• My assignment requests I “substantially address” three topics. Thus three of my key messages will be presented in greater detail than typical.

Why I chose to read -

• I was interested in taking a MOOC and found the course "Learning How to Learn" very intriguing. A Mind for Numbers was the recommended reading.
• I desire to increase the effectiveness and efficiency of my learning.
• Flows from the possibility of enrolling in a one year masters program this fall and my desire to be a life-long learner
• Learning/reading is a shared interest Renae and I hold. We felt taking a course together would be fun and exciting. Indeed it has!

Background Details -

• Subject: A summary of research on how our minds learn and retain information. Specifically details techniques and methods for maximizing one's ability to learn.
• Year Published: 2014
• Author: Barbara Oakley
• MOOC Co-instructor: Terry Sejnowski
• Setting: In the midst of an age demanding a high ability and capacity to learn new information and continually adapt to new technologies and knowledge, knowing how to effectively and efficient learn has never been more essential to career success.

Author Details -

• Education
• Professor of engineering, Oakland University in Rochester, Michigan (current)
• Ph.D. in Systems Engineering, Oakland University (unspecified)
• B.S. in Electrical Engineering, University of Washington (1986)
• B.A. in Slavic Languages and Literature, University of Washington (1977)
• Interesting Notes
• Worked on Soviet fishing trawler on the Bearing Sea as a Russian translator
• Radio operator at South Pole Station in Antartica
• Creator of 3rd most popular MOOC on Coursera

Reflections (book and MOOC) -

I feel I am being a little critical as I think both the book and MOOC were really good. However other books have excited me much more (see Recommended Reading List).

What I Appreciated -

• Excellent content – Synthesized hundreds of references to present many effective learning techniques and habits research has found.
• References were also cited extremely well
• Easy and quick read that will benefit my learning for many years to come.
• Utilizes analogies and metaphors to teach and improve the retention of key messages.

Shortcomings -

• Knowledge does not always translate to action.
• I feel realistic expectations could have been stated regarding time to adopt new learning methods.
• Seems almost too basic. But maybe that is because knowing how to learn is basic, but actually doing it is difficult :).
• While it is beneficial to understand the biology and reasons certain techniques work, I feel these at times unnecessarily lengthened the final text.

Key Topics -

1) Focused and Diffuse mode

• Our mind uses two modes, the focused and diffuse mode. Many are aware of the focused mode which we use when intensely concentrating on understanding new material. The focused mode is essential for transferring new information into memory, however in order to fully comprehend our newly acquired material the diffuse mode is also of great benefit. 
• The diffuse mode of thinking is a more relaxed state of learning. The diffuse mode engages when we remove our self from intensely concentrating, and instead loosely hold the information in our minds. It often operates during activities such as light exercise, showering, eating, and even sleeping! Unlike the focused mode, the diffuse mode allows our mind to connect new information with more distant parts of our brain to further our understanding and mastery of new information.
• It is important to recognize both modes of thinking are essential to effective and efficient learning. As one cannot be in both modes at once, it is beneficial to improve one’s ability to quickly switch between the focused and diffuse modes of thinking.
• The Pomodoro technique is an excellent technique to engage both modes. The Pomodoro technique consists of removing distractions and intensely focusing on material for ~25 minutes. After ~25 minutes, a 3-5 minute break with a reward is given. This small break allows one’s mind to transition into the diffuse mode and provides a built in reward system for focused, undistracted learning. Multiple Pomodoro sessions can strung together during longer study sessions. Of note, after the fourth Pomodoro session, it is recommended to take a longer break (~30 minutes).
• To-do lists are a second application of engaging both the focused and diffuse modes. As stated by Barbara Oakley in A Mind for Numbers, it is effective to form to-do lists for the following day the night before. The focused mode is utilized in forming the to-do list, followed by diffuse mode operating during your sleep to prepare you for action the following day. Not only do to-do lists utilize both modes of thinking, but they also aid in learning through freeing up working memory as discussed in key topic #2 below.

2) Working and long-term memory

• Similar to having two modes of thinking, our minds have two memory states, a working memory and a long-term memory. A typical person’s working memory is able to hold four “chunks” of information. Individuals are unable to expand the number of chunks they can hold, but are able to increase the size of the chunks as one becomes more familiar with material. This is demonstrated through the use of to-do lists. If you know what you want to be doing, additional space in freed in your working memory rather than having space taken up by thinking about what you should be doing.
• Working memory is temporal in nature. Barbara Oakley describes working memory as a blurry chalkboard, able to quickly be erased and replaced with new information. In comparison, long-term memory serves as a large storage warehouse. With effort from your working memory, you are able to retrieve long-term memories.
• Many methods and techniques were presented to aid in the development of long-term memory. Utilizing active recall in combination with spaced repetition can greatly improve the effectiveness and efficiency of forming long term neural connections. Anki is a website that uses computer algorithms to optimize the use of spaced repetition via computerized notecards.
• Furthermore, our minds have exceptional spatial and visual abilities. Enlisting the use of evocative images and memory palaces greatly aids one in committing information in working memory to long-term memory. See Joshua Foer's TED Talk for a great video on the use of these techniques in memory competitions. Oakley also promotes the use of meaningful groups and memorable sentences to aid in the storage and retrieval of long-term memories. Two examples of these include the using acronyms such as MONA and “Old People From Texas Eat Spiders”.
• MONA: Morphine, Oxygen, Nitroglycerin, Aspirin. Four interventions for patients presenting to an emergency department with a verified heart attack.
• “Old People From Texas Eat Spiders” is to assist the retrieval of the names of our cranial bones: Occipital, Parietal, Frontal, Temporal, Ethmoid, and Sphenoid.

3) Illusions of Learning

• A third main topic of A Mind for Numbers is to be aware of and avoid illusions of learning. These are behaviors and traps that trick our minds into believing we are learning, when in fact we are forming poor and temporary neural connections that are quickly lost.
• Passive rereading, the process of simply skimming over recently read material, is an illusion I have frequently succumbed to. During passive rereading, I fool myself into thinking I know and understand material only to “choke” when forced to use active recall to retrieve the information (aka tests).
• Another illusion of learning I have experienced in the phenomenon of overlearning. Overlearning is the repetitive studying of the same material during the same study session. Our minds are only able to learn or master a certain amount of the same material in each study session. Studying beyond this is inefficient and tricks our minds into thinking we have learned the material. Instead, we have failed to build strong, long-term neural connections. It is far more effective and efficient to use the techniques of spaced repetition as described above to commit material into long-term memory.
• I find myself engaging in overlearning when I have procrastinated and feel forced to quickly memorize information. While I may remember some of the material during my times of overlearning, I miss how to apply or where the information fits into the big picture.
• Other illusions of learning covered in A Mind for Numbers include the Einstellung effect, only concentrating on “easy problems”, and not utilizing interleaving to know both how and when to use information.

Who do I recommend read -

• Anyone interested how to improve their learning
• High school students who would benefit from the techniques and habits listed not only for their entire lives, but also avoid ingraining poor study/learning habits at an early age which would need to be corrected later.
• Teachers - they are in an ideal position to instruct students on effective learning methods and resources.
• Anyone who considers themselves a poor learner. It may be they received little to no instructed and/or developed productive study habits.

Who do I recommend not reading -

• Someone who does not plan to every learn anything again. I’m not sure who this person is but maybe they exist?

While bordering on lengthy, Barbara Oakley’s A Mind for Numbers compiles and presents in layman’s terms many effective and efficient techniques and habits to improve one’s ability to learn and retain new material. In today’s marketplace, the demand for learning, synthesizing, and teaching new information has never been greater. A Mind for Numbers and Oakley’s associated Coursera MOOC are worthy of your time and effort.

Next Post Topic: Disability Part I: Overview

Book Review IV: The Tragedy of American Compassion

Overall Rating: 4.5/5

Estimated Reading Time: 8 hours (244 pages, ~2 minutes/page)

Why I choose to read -

• I enjoy learning and writing about public assistance programs
• I feel America’s public assistance programs can be improved, but I am unsure how

Background -

• Author: Marvin Olasky
• First Edition: 1992
• Cultural Context: Not particularly important as book deals with wide range of historical years

Author Details -

• Born 6/12/50 in Boston, Massachusetts
• Engaged in journalism, editorship, speech writing
• Wikipedia Biography
• World Magazine
• Video series detailing Olasky’s life and thought progression. I did not view these videos, however they appear to be very detailed.

Reflections -

What I appreciated:

• Olasky attempted to remain unbiased while detailing what he believes
• Author makes a strong case of the need to alleviate more than just physical suffering to break destructive cycles
• Very detailed historical foundation of how government came in position of providing the majority of social services

Shortcomings:

• Vague and limited on proposed solutions. Focuses on here is where we are and here are examples of what has worked before. This allows Olasky to have less bias, but results in a lack of specific suggestions for change.
• Published in 1992, thus 20+ additional years of poverty alleviation efforts with limited results have elapsed. It would be ideal if an updated version was released.

Key Messages -

• Culture constructs systems of charity in the image of the god(s) they worship

• America:
• Money – We throw money at problems
• Independence – We do not want to become personally involved. We would rather give money than become personally involved.
• Comfort – We largely believe no one should suffer, regardless of the circumstances leading to their suffering.
• Feed and forget model
• Current public assistance and charities are designed more for givers than receivers. They are designed to make people feel as if they are doing something and no longer responsible or inconvenienced by the needs of the poor.
• Nothing is more demoralizing to the struggling poor than successes of the indolent or vicious
• Indolent: wanting to avoid activity or exertion; lazy
• Author asks: “If social universalists believe money will create goodness, then why does the wealthiest nation in the world suffer from high levels of crime, despair, and depression?”
• (My thought) Increased wealth only makes us more of who we are
• Author greatly supports affiliation/bonding through personal relationships, work tests, and is vehemently against indiscriminate giving.
• Bad charities drive out good charities
• Bad charities: Defined as those who give aid indiscriminately to relieve solely physical needs
• Good charities: Defined as those engaging in: 
• discriminate giving to the worthy poor
• alleviation of psychological, emotional, social, and physical needs 
• modifying the underlying behavior of why individuals are currently in poverty
• Discriminate giving to the worthy and unworthy poor
• Author supports there are those in poverty who are worthy of assistance and those who are unworthy. Olasky goes on to describe how discriminate giving is needed in such situations. Unfortunately large scale public assistance efforts are unable to engage in discriminate giving. Rather it must use impersonal mathematical formulas and flowcharts. (Food Assistance, Unemployment Insurance)
• Charities found some individuals needed to suffer in order to be willing to change
• Similar to a person needing to hit “rock bottom” before change can occur
• Difficult and unpopular belief in America. We are often too impatient with relieving suffering, likely due to idolizing comfort
• Suffering aside, cited charities supported not allowing anyone to starve regardless of the cause
• Litmus test: Do we care for the hearts, minds, and souls of those who are suffering or just their bodies (physical)?
• Welfare often creates an appetite which is more harmful than the pain it is intended to relieve
• AICP (Association for Improving the Conditions of the Poor) stressed all relief should be temporary
• AICP found chronic, unexpiring relief bred huge problems in both the recipients of aid and in the resulting compassion fatigue of workers who felt disheartened, exhausted, and ineffective.
• Read When Helping Hurts for more on compassion fatigue
• By concentrating on the millions (federal public assistance programs), we lose compassion for individuals (local assistance)
• S. Humphreys Gurteen with Buffalo COS (charitable organization society) implemented work test and used loans (rather than free handouts) with impressive results
• Work tests allowed dispensing of aid while retaining dignity
• One of the key psychological and social factors to poverty is the need to restore a person’s dignity. Work tests enabled those receiving aid to begin the restorative process.

• Philanthropy has become as cold as the payment of taxes - mostly because it is the payment of taxes
• Federal Emergency Relief Administration on direct relief (1934): 
• “Direct relief has little to commend it. While at the present time it may happen to be the cheapest way of meeting the problem, in the end . . . it probably will prove the most expensive”
• Direct relief being meeting only individual’s immediate physical needs rather than going further to meet emotional, psychological, knowledge, and skill needs/gaps
• (My thought) It is humorous to read public assistance proponents demand federal leadership to solve poverty and enact wealth distribution. They are equating “leadership of federal government” with progressive taxes and redistribution of resources.
• As I place a high value on freedom (My Voting Issues), I would error on leaving the level of public assistance up to the people. If they do not want to give indiscriminately, then the people have spoken.
• If the federal government was a charity, how much (if any) would you choose to donate? 
• There is no right or wrong answer. Your answer simply reflects how effective you believe the federal government is at alleviating poverty/hardship.
• I disagree with author’s suggestion of using tax deductions and credits to lower economic barrier to funding private charities.
• Again, leave it up to the people, if they do not want to give indiscriminately, then the people have spoken. Subsidizing certain organizations only distorts people’s true preferences.
• Many charities found people needed to be able to freely come and leave poor houses (personal choice)
• Individual choices are the means to end poverty
• Difficult, if not impossible, to help those who do not want to be helped
• Again, see When Helping Hurts
• Historically, most aid given was actual materials, not money
• Actual materials, rather than money, restrict recipients choice of how to utilize aid (loss of freedom)
• Author believes aid should come at an expense of freedom
• Could argue a black market would emerge, but efficiency is lost by selling/bartering actual materials (food stamps, ect.)
• In addition, a well organized, local charity participating in discriminate giving would likely be informed of aid abuses and no longer provide aid to such individuals. Unfortunately large government charities are slow/unable to discriminate in such a way.
• Charles Brace – “the best politics and the most complete form of government are nothing if the individual morality be not there
• Brace found a combination of personal, theological, and economic incentives moved families to care for impoverished children
• Josiah Quincy (1821 chairman of Massachusetts legislative committee) on pauper laws concluded:
• “There must always exist, so many circumstances of age, sex, previous habits, muscular, or mental strength, to be taken into the account, that society is absolutely incapable to fix any standard, or to prescribe any [universal] rule by which the claim of right to the benefit (public assistance) of the public provision shall absolutely be determined.”
• Paraphrased: Universal, mathematical formulas would be unable to determine level of need or qualifications for aid

To who would I recommend reading?

• Anyone frustrated with current poverty alleviation efforts
• Anyone currently affiliated or considering participating in any form of poverty alleviation effort (public or private systems) 

To who would I not recommend reading?

• If you have no interest in public assistance programs

The Tragedy of American Compassion succeeds in detailing a history of poverty alleviation efforts. While lacking in proposed solutions, it shines in providing hope and encouragement efforts can be improved.

For me, overcoming poverty in America and the world seems overwhelming. Olasky stated, "by concentrating on the millions, we lose compassion for individuals." I believe it is important to start small, one person/family at a time.

How do you eliminate poverty in one's lifetime? I start today and remove the poverty label from just 1 person this year (lets assume you were this person). Next, you and me in the second year remove the poverty label from 1 person each (2 total). In the third year, the 4 of us snowball our efforts and each remove 1 person from poverty in year 3 (8 total out of poverty label). Even though after 34 years, I personally would have only removed the poverty label from 34 individuals, everyone's efforts combined would purge the entire world of poverty (8.5 billion total persons). Astounding.

Next Post Topic: Fantasy Football 2014: Draft Prep

Book Review III: A Foreign Policy of Freedom

Overall Rating: 4.5/5 

Estimated Reading Time: 10 hours (371 pages, ~1.5 minutes / page)

Why I choose to read:

• 2012 presidential primary debates spurred my interest in foreign policy due to controversy on Israel-Iran tensions.
• Desire to hear Ron Paul’s stance on foreign policy from the horse’s mouth, not from secondary media outlets.
• Read Ron Paul’s The Revolution and End the Fed further raising my interest in understanding Ron Paul’s noninterventionist beliefs.
• Numerous foreign events in recent times:
• Iran, Afghanistan, Iraq, Libya, Syria, Israel, Korean Peninsula, G-7, G-20, United Nations, NATO
• Underdeveloped political area of mine.

Background:

• Subject
• Ron Paul’s beliefs and insights into America’s foreign policy. More specifically, an in depth study of Ron Paul’s support of noninterventionist foreign policy.
• Year Written: 1997
• Cultural Context
• 6 years post Gulf War
• Soviet Union dissolved in 1991
• Cold War

Author Details:

• Promoter of Austrian Economics
• Ludwig von Mises
• Murray Rothbard
• Libertarian platform
• Ron Paul Channel
• Online video platform with episodes of Ron Paul’s views on current and controversial issues
• Texas senator for 25 years
• Detailed Biographys
• Ron Paul Channel
• Wikipedia

Reflections:
What I appreciated -

• Increased my understanding of how our foreign policy is perceived worldwide.
• Makes me extremely frustrated with the wasted resources (people, money) and harm to citizens of both our own country and other countries.
• Increased sympathy for Ron Paul. His steadfastness in holding to his beliefs in the face of misrepresentation and malignment by others is noteworthy.
• Has tried so hard to steer our country away from foolish decisions with few if any results. I feel we are now reaping the fruit of our planting in the 21st century with 9/11, Afghanistan, Iraq, Iran, Korea, China, etc.
• It is no wonder why Ron Paul receives more donations from military members and their families than any other candidate.
• Free pdf of entire book at Ludwig von Mises Institute

Shortcomings -

• Due to publication date of 1997, has missed a number of foreign affairs in the last 15 years.
• Would have been very interesting to hear how these events fit into Ron Paul’s framework.

Key Messages:

• Ron Paul believes in policy of armed neutrality (linked with free trade and strong defense)
• A policy of non-intervention would make America stronger, wealthier, more influential, and a respected beacon of liberty
• Giveaway programs (foreign aid) and trade barriers (tariffs) create contempt, hostility, national debt, and decrease American business competitiveness
• Giving foreign aid for peaceful purposes (humanitarian aid) allows countries to free up their own limited capital for military purposes
• Treating our enemy’s enemy as friends is short lived
• Examples: Sadaam Hussein (1980’s), Osama bin Laden (1980s)
• 60% of our military budget is being spent on the defense of other nations (1997)
• In an attempt to balance interests we anger all sides
• By trying to support both sides we alienate both sides
• When one person can initiate war (president), a republic no longer exists
• The president may be commander in chief, but Congress authorizes funding, no funding = no foreign intervention
• Waging war and ratifying treaties is a legislative function, not executive
• Out of political fear, Congress relinquished/transferred its war declaring power to the president
• In the end, the economic consequences of world domination will dictate our policies
• The demand to sacrifice liberty at home to promote freedom and democracy abroad rings hollow
• Hypocritical to use outside force to achieve freedom
• Economic law eventually overcomes politicians deceit
• Seems ironic we have been allies with Sadaam, Osama, and the Islamists in Iran
• Noninterventionists are misrepresented as isolationists, however the consequences of interventionist polices actually lead to isolationism
• Decreased allies, increased enemies, worsened economic conditions
• Opposing continuing wars is not a lack of support for the troops, in many ways it is supporting them by bring them home to their families

• Henry Grady Weaver:

"Most of the major ills of the world have been caused by well-meaning people who ignored the principle of individual freedom, except as applied to themselves, and who were obsessed with fanatical zeal to improve the lot of mankind-in-the-mass through some pet formula of their own. The harm done by ordinary criminals, murderers, gangsters, and thieves is negligible in comparison with the agony inflicted upon human beings by the professional do-gooders, who attempt to set themselves up as gods on earth and who would ruthlessly force their views on all others with the abiding assurance that the end justifies the means."

• Rather than democrat or republican should use terms libertarian and socialist as both democrats and republicans support a mix of both libertarian and socialist policies
• We sacrifice future wealth for present indulgence at the expense of individual liberty
• The debtor is slave to the lender
• Bad ideas, whether promoted by men of bad or good intentions will produce bad results
• Wars are won with sound economics (my thought)
• Ron Paul was for responding to 9/11 with intelligent military force
• Before committing to a war, success, our enemy, and our exit strategy should all be defined and approved by Congress
• Should avoid entangling alliances and have an exit strategy for all alliances
• War is often built around money (like everything else) rather than our nation’s security
• Ron Paul is very much against the UN/NATO (decreases America’s sovereignty)
• Thomas Jefferson said “peace, commerce, honest friendship with all nations, entangling alliances with none”
• The United States should strive to be an example to other nations such that foreign peoples/governments will enact their own change outside of U.S. influence
• War results in innocent people dying and damaged economies
•  “A government big enough to give you everything is big enough to take it all away”
• David Crocket
• We support a military takeover as long as the new dictator does as we tell him
• To dismiss terrorism as a result of Muslim’s hating us because we are rich and free is a fraud
• Preemptive wars for humanitarian causes could be privately funded and manned
• LOVE this idea!
• Cannot fund both foreign entanglements and domestic entitlements
• Supports move towards localized government and weak central government
• Elections are a consequence (good) of freedom; freedom is achieved first and then elections
• Using force contradicts the moral foundation of a free society

To who would I recommend reading?

• Everyone. Our personal and country’s safety, freedom, peace, and prosperity is at risk
• Especially young and middle-aged as we bear the greatest human and financial cost

To who would I not recommend reading?

• Ron Paul
• Those who have read it in the last 10 years
• Read these books first:
• Doctrine - Driscoll
• Economics in One Lesson – Hazlitt

I believe A Foreign Policy of Freedom is one of Ron Paul’s greatest works. It is a shame it has not garnered greater attention, especially in light of recent foreign conflicts, largely the outcomes of seeds sown long ago. I agree with Ron Paul, a policy of non-intervention would make America stronger, wealthier, more influential, and a respected beacon of liberty. All things I believe all people would agree are worth striving for.


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Book Review II: Economics in One Lesson

Overall Rating: 5/5

Estimated Reading Time: 8 hours (224 pages, ~2 minutes per page)

Why I choose to read -

• Recommended by Ron Paul
• Interested in expanding my knowledge and understanding of economics
• Lots of media coverage regarding minimum wage, unions, employer mandated health care coverage, bailouts, tariffs, CEO pay, interest rates, etc.
• In my limited knowledge I seem to gravitate towards the Austrian camp of economics, of which Henry Hazlitt identifies with
• Excellent Amazon reviews

Background -

• Subject:
• Refuting common economic misconceptions
• Establishing sound economic doctrine for long term, sustainable, local and national economies
• First Edition: 1946
• Subsequent Editions: 1962 and 1978
• Cultural Context
• Immediate post World War II rebuilding era
• Thousands of soldiers returning from Europe and Asia
• Author lived through Great Depression and Roosevelt’s New Deal implementation
• Bretton Woods Agreement (1944)
• Created International Monetary Fund (IMF)

• Author Details
• Born in Philadelphia, Pennsylvania
• Raised in Brooklyn, New York 
• Briefly enrolled in New York’s City College
• First employed by The Wall Street Journal. Also held positions at The New York Evening Mail, The New York Sun, The Nation, The New York Times, and Newsweek.
• Self identifies with Austrian school of economics

Reflections -

• What I appreciated:
• Extremely practical. Coverage of numerous controversial topics from minimum wage to special interest groups.
• Timely message.
• Today’s political and economic climate is extremely heated regarding which groups to economically favor and which policies to drum up support for.
• Entry level economic text providing logical and rational critique of past, present, and future policies.
• Easy to read and comprehend. Written to the lay person with no background in economics.
• Needed to understand implications and refute politician’s pet programs.
• Shortcomings:
• A little basic on inflation (did reference other work).
• Falls short on showcasing times to divide from proposed principles (war).

Key Messages -

• We MUST understand that productivity, not policy, increases real wages.
• Determining whether an action increases or decreases productivity is the key to solving most economic proposals.
• Profit provides an incentive to innovation and decreased production costs (efficiency).
• Greed and dishonesty are the innate problems mistakenly attributed to profit. Profit is not bad, rather it drives economic and technological expansion.
• It is essential for the health of a dynamic economy that dying industries should be allowed to die and growing industries are allowed to grow.
• Dying industries (or obsolete) absorb labor and capital that should be released for more efficient growing industries.
• One occupation can expand only at the expense of other occupations.
• It is the proper sphere of government to create and enforce a framework of law that prohibits force and fraud.
• Although capital accumulation (a.k.a saving) may prolong a contraction/depression, it will serve to create a greater boom when all the stored up capital is released.
• Hoarding is a symptom of economic recession/depression, not a cause.
• If people are “hoarding money”, interest rates will naturally rise to pull money out of mattresses; don’t need to force people’s hand with artificially low interest rates and inflation.
• Inflation leads to over expansion of some industries (consumer discretionary) at the expense of others (staples), resulting in misapplication and waste of capital.
• Inflation is the opium of the people :)
• Poor are less able to protect themselves from inflation, punishing the poor more than the rich.
• Government loans are given to the highest risk individuals whom private lenders wouldn’t touch.
• Places resources in the hands of less efficient entities.
• Increases tax burden.
• Market also self-selects the best lenders who make the least amount of bad loans; government does not have competition and bails itself out through taxation or increasing the money supply (inflation).
• Subsidized housing loans create an oversupply of houses and hurt real people and sound businesses by lowering their current property values (increased supply).
• Rent controls place a barrier to new construction, the exact thing which would decrease rent.
• Landlords will also no longer make repairs due to decreased funding.
• We cannot have maximum production without maximum employment; we can however have maximum employment w/o maximum production.
• Minimum Wage
• Exchange higher wages for unemployment.
• To raise wages we need to raise/increase the productivity of workers, not fix wages/prices.
• Increases prices of basic goods: food, clothing, etc.
• Charging higher prices for products hurts exports and helps foreign companies import (hurts trade balance).
• Eventually leads to tariffs.
• Encourages black market cash payments (decreased government revenue) when an individual is willing to work for less than minimum wage.
• Unions
  
• Strikes are effective if the employer cannot hire new employees; otherwise strikes are extremely damaging to all parties.
• Increased wages w/o increased productivity increases prices of products/services which decrease demand which leads to unemployment as less supply is needed.
• Unions in part lead to the destruction of their own jobs.
• Unions often are opposed to profit sharing or payment based on output or efficiency (productivity), opting rather for implementing seniority.
• Tariffs
• Tariffs benefit a particular producer at the expense of all consumers and all other producers.
• Eventually trade balances must be equalize. Thus importing will actually increase exporting of goods.
• Your neighbor is only willing to give you so much (imports) on promise of future repayment. Eventually you will have to pay your neighbor (exports) or your neighbor will stop "trading" with you eliminating both importing and exporting of goods/services.
• Tariffs decrease labor productivity by funneling resources ($ and work) into less efficient industries.
• Tariffs always reduce real wages by decreasing efficiency and decreasing productivity
• Tariffs/boycotts of goods produced without adequate environmental controls, slave labor, or unsafe work practices may be warranted.
• Understandably very difficult to implement and a better solution may be for individual consumers to research where and how the products they are purchasing are produced.
• Another potential solution would be businesses would open offering for sale only "fair trade" products. Very similar to fair trade coffee and diamond retailers.
• A problem solved efficiently and effectively by the private sector without the need for an expanded public sector.
• Rationing is an interesting topic, but one in which the black market may counteract.
• Black markets increase dishonesty and in the setting of price controls, inefficiently produce inferior and dishonest goods due to incentives.
• Prices of goods rise from:
• Increased demand
• Decreased supply
• Surplus of money
• With corporate income tax, corporations lose 100% of their losses, but may only gain ~65% of their profits.
• Makes them risk adverse leading to decreased rate of company expansion thus decreased rate of job creation.

To who would I recommend this book? 

• Everyone 13 years of age and older.

To who would I not recommend Economics in One Lesson?

• Those who have read in the last 5 years. 
• If been greater than 5 years should be reread.

Henry Hazlitt delivers a timely, well-articulated, and efficient message of the consequences of unsound economic policy. Serving as an excellent foundational text for common economic thought on a variety of mainstream issues, the need to read and understand Economics in One Lesson exponentially increases as more and more economic and political favors are given to special interest groups. Its messages should be read by all, multiple times, lest we forget and choose of path of slow, ignorant loss of our freedoms and economy.

Next Post Topic: Unemployment Assistance Part I

Book Review I: End the Fed

Overall rating: 5/5


Estimated Reading Time: 5 hours (285 pages, ~1.5 minutes / page)

Why I choose to read:

• Formerly read and appreciated Ron Paul’s book The Revolution which briefly outlines libertarian principles in general, and Paul’s beliefs in particular. I was subsequently compelled to read additional works authored by Ron Paul and choose to start with End the Fed
• Watched 2012 republican primary debates and found while at times Ron Paul poorly articulated his beliefs and convictions, his reasoning resounded strongly with my intellect and life experiences
• Lots of recent news on the Federal Reserve (QE1, QE2, QE3, bond swapping) combined with my perceived ignorance of the function/role of the Federal Reserve
• Stellar Amazon Reviews

Background:

• Subject: Societal consequences of fiat money managed by a central entity, in this case the U.S. Federal Reserve
• Year written: 2009
• Cultural context -
• 2009 national debt: $11.9 trillion
• Post banking, housing, and automotive bailout
• Growing distrust surrounding government and large corporation use of federal funds
• CEOs of bailed out corporations receiving millions of dollars in salary

Author details - Texas senator for 25 years Libertarian platform Detailed Biography RonPaulChannel.com Wikipedia

Ron Paul

Reflections:

• What I liked about the book - 
• Easy to read for those with no or limited background in economics and fiscal policy.
• Efficient in its presentation, little wasted words or topics detracting from intended purpose.
• Timely message in the midst of record setting deficits (both overall and yearly).
• Compelled me to read many more economic books by Austrian economists and other books/authors recommended by Ron Paul.
• Exceeded my expectations – I now know why his followers chant “End the Fed!”
• Numerous take-aways/key messages/profound statements.

• What I didn’t like about the book -
• Although I do not have a specific example, I felt there was a time or two Dr. Paul did take an extremist view. However, as a general rule, I do defer to Dr. Paul’s 25 years experience in the federal political scene as being vastly more experienced and insightful than my limited life experiences.
• I feel pressured to present more negative reflections, but I really don’t have any! Probably the reason I gave it 5 stars ;)

Key take-a-way messages - lots... read the book for details :)

• Businesses desire privatized/protected profits and socialized losses.
• Ron Paul: “The seekers of bailouts condemn their opponents as stubborn and selfish ideologues. Of course, when those wanting the taxpayers’ bailouts were making profits, they were quite content to support the principle that the profits were theirs and they deserved to keep as much as possible as part of the free market philosophy."
• Allows for risk to be passed on to taxpayers. Business want to keep all their profits but pass their losses amongst society’s members (bailouts).
• Deflation is only a threat when you have lots of debt.
• In a deflationary environment, your savings becomes more valuable over time w/o the aid of interest rates. On the flip side, any debt you have becomes more difficult to pay off. Thus our massive debt problem both individually and corporately as a nation creates large opposition to sound fiscal policy in general, and deflation in particular.
• Savers are cheated by low interest rates and opposition to deflation.
• Central banks remove the fiscal limits on war.
• A huge barrier to initiating and maintaining wars is removed since wars no longer must be financed by direct taxation. Rather, a secret inflationary tax devaluing money through increasing the money supply can be utilized.
• Only 21% of World War I was financed by direct taxation. The rest by bond issuing with the federal government serving as lender of last resort (no risk of failing) and increased money supply.
• Politicians do not need to balance budgets because our central bank can print money. 
• They can pass their debt laden agenda through, and pay for it through increasing the money supply. This results in a hidden inflationary tax with the poor and middle class bearing the greatest burden by receiving funds the last.
• State governments cannot print money, thus we have 50 case studies of governments operating without being able to increase the money supply (some better than others). We also have all the local governments. They must sell bonds with inherent, market driven risk, to acquire debt, just like the rest of us. (more my thoughts than Dr. Paul’s)
• Although it may take time, the market always wins.
• Even if it requires the market to go underground.
• We have created a system with incentives of spending and debt accumulation as inflation rewards those with a negative networth (like me!) by making their debt cheaper to repay.
• We want the government to guarantee security not liberty.
• We have chosen vast safety nets (food assistance, subsidized housing, Medicare, Medicaid, unemployment, etc.) over the freedom to spend the fruits of our labor as we choose.
• Private banking (no FDIC or lender of last resort)
• Would create a market for private deposit insurance and individuals would spread their deposits amongst multiple banks (diversification).
• More paperwork: yes; bank bailouts and too big to fail: no
• Easier to print money then to directly tax
• People don’t like to be taxed :)
• Commodity and service prices adjust based on existing money supply, the money supply does NOT need to be adjusted to change prices.
• Allow private minters and currency systems.
• Anyone can get into the business of money production thus creating competition.
• Markets already exist for currency conversions
• Not sure why this hasn't happened yet.
• 2014 Update: Bitcoin is attempting to emerge as an alternative currency

To who would I recommend this book?

• Those interested in economic policy, who have questions about why Ben Bernake or the Federal reserve chairman is on the news, and who question the government’s role on money management.

To who would I not recommend this book?

• Those with limited time to read. There are more influential and timely books if pressed for reading. Such as Mark Driscoll’s Doctrine.

End the Fed is a book written at a literary level for the masses, not just economic professors. As such, I believe Dr. Paul delivers timely and well articulated arguments for the negative consequences of fiat money managed by the Federal Reserve. A must read by all but the most time constrained readers.

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