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Shortest History
How Economics Explains the World: A Short History of Humanity
“If you read just one book about economics, make it Andrew Leigh's clear, insightful, and remarkable (and short) work.” —Claudia Goldin, recipient of the 2023 Nobel Prize in Economics and Henry Lee Professor of Economics at Harvard University
A sweeping, engrossing history of how economic forces have shaped the world—all in under 200 pages
One of The Economist's Best Books of the Year
InHow Economics Explains the World, Harvard-trained economist Andrew Leigh presents a new way to understand the human story. From the dawn of agriculture to AI, here is story of how ingenuity, greed, and desire for betterment have, to an astonishing degree, determined our past, present, and future.
This small book indeed tells a big story. It is the story of capitalism – of how our market system developed. It is the story of the discipline of economics, and some of the key figures who formed it. And it is the story of how economic forces have shaped world history. Why didn’t Africa colonize Europe instead of the other way around? What happened when countries erected trade and immigration barriers in the 1930s? Why did the Allies win World War II? Why did inequality in many advanced countries fall during the 1950s and 1960s? How did property rights drive China’s growth surge in the 1980s? How does climate change threaten our future prosperity? You’ll find answers to these questions and more in How Economics Explains the World.
“Can a short book survey the full history of something so vast and remain readable? To find out, read How Economics Explains the World, by Andrew Leigh. In simple, clear language—and less than 200 pages—it does exactly what its title promises. … Leigh canters through the history of human progress, pausing briefly to explain the economic forces and ideas that drove it forward. … Along the way, readers meet the big economic thinkers who sought to explain these forces. Both finance aficionados and mere novices will read, savour and return to this book.” –The Economist, “The Best New Books to Read about Finance”
A sweeping, engrossing history of how economic forces have shaped the world—all in under 200 pages
One of The Economist's Best Books of the Year
InHow Economics Explains the World, Harvard-trained economist Andrew Leigh presents a new way to understand the human story. From the dawn of agriculture to AI, here is story of how ingenuity, greed, and desire for betterment have, to an astonishing degree, determined our past, present, and future.
This small book indeed tells a big story. It is the story of capitalism – of how our market system developed. It is the story of the discipline of economics, and some of the key figures who formed it. And it is the story of how economic forces have shaped world history. Why didn’t Africa colonize Europe instead of the other way around? What happened when countries erected trade and immigration barriers in the 1930s? Why did the Allies win World War II? Why did inequality in many advanced countries fall during the 1950s and 1960s? How did property rights drive China’s growth surge in the 1980s? How does climate change threaten our future prosperity? You’ll find answers to these questions and more in How Economics Explains the World.
“Can a short book survey the full history of something so vast and remain readable? To find out, read How Economics Explains the World, by Andrew Leigh. In simple, clear language—and less than 200 pages—it does exactly what its title promises. … Leigh canters through the history of human progress, pausing briefly to explain the economic forces and ideas that drove it forward. … Along the way, readers meet the big economic thinkers who sought to explain these forces. Both finance aficionados and mere novices will read, savour and return to this book.” –The Economist, “The Best New Books to Read about Finance”
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First published March 12, 2024
About the author
Andrew Leigh
12 books55 followersAndrew Leigh is a member of the Australian Parliament. He holds a PhD from Harvard University, and is a fellow of the Academy of Social Sciences in Australia. Before being elected in 2010, he was a professor of economics at the Australian National University. His books include The Shortest History of Economics, The Luck of Politics and Randomistas.
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Displaying 1 - 30 of 354 reviews
July 8, 2026
Beginning in prehistoric times and ending in the 2020s, Andrew Leigh examines the rise of capitalism as the dominant global economic philosophy. However, capitalism is not the only economic philosophy in history. The Cold War, for instance, was partially underpinned by competing theories of economic governance—capitalism versus communism—yet this receives scant attention. Moreover, like many history books, most of this book focuses on the past century. Although this may reflect the rise of economics as an academic discipline, it diminishes the arguably greater intrigue of disparate economic systems of earlier civilisations compared to our neoliberal world order today.
Leigh concludes the second chapter by arguing that Europe's world-leading affluence by the 1400s "was rooted in luck." Leigh's statement relies on the geographic determinist argument espoused by Jared Diamond that Eurasia had more domesticable plants and animals. Leigh makes a sleight of hand by saying Eurasia when it was the Levant region where such domestication took place. Why was the Levant region also not affluent at this time? It is because Leigh conveniently ignores the gradual development of inclusive economic and political institutions in Western Europe following often bloody civil conflicts during the Middle Ages and incessant technological competition between proto-nation-states for regional power.
Leigh states that there were no decisive battles during World War II. Instead, it was economic capital that underpinned ultimate Allied victory. This is historically shallow. Take the Battle of Midway and the Battle of Stalingrad as examples. America's naval victory over Japan at the Battle of Midway was catastrophic for the Japanese Empire's capacity for offensive posturing for the remainder of the war and was decisive in the Allies' ultimate victory. Moreover, if the Soviets had lost the Battle of Stalingrad, Germany may have conquered Russian territory all the way to the Urals. They would have subsequently been able to free up millions of soldiers, potentially impeding the Allies' invasion of Normandy.
Leigh concludes the second chapter by arguing that Europe's world-leading affluence by the 1400s "was rooted in luck." Leigh's statement relies on the geographic determinist argument espoused by Jared Diamond that Eurasia had more domesticable plants and animals. Leigh makes a sleight of hand by saying Eurasia when it was the Levant region where such domestication took place. Why was the Levant region also not affluent at this time? It is because Leigh conveniently ignores the gradual development of inclusive economic and political institutions in Western Europe following often bloody civil conflicts during the Middle Ages and incessant technological competition between proto-nation-states for regional power.
Leigh states that there were no decisive battles during World War II. Instead, it was economic capital that underpinned ultimate Allied victory. This is historically shallow. Take the Battle of Midway and the Battle of Stalingrad as examples. America's naval victory over Japan at the Battle of Midway was catastrophic for the Japanese Empire's capacity for offensive posturing for the remainder of the war and was decisive in the Allies' ultimate victory. Moreover, if the Soviets had lost the Battle of Stalingrad, Germany may have conquered Russian territory all the way to the Urals. They would have subsequently been able to free up millions of soldiers, potentially impeding the Allies' invasion of Normandy.
May 5, 2024
Oh my goodness, the buzz you get ostentaciously reading this on public transport is like no other. People think you're clever but little do they know this is actually a very easy read and only 170 pages long. The font is also reassuringly large.
Fully recommend if you just wanna ground yourself in the absolute basics of economics (which is essentially everything).
To sweeten the deal, I'll throw this little story out there: My work sent me to Australia for three months... Forcing me to begrudgingly leave my wife with our 9-month baby in the UK. As she was navigating through long, scream-laden, rainy nights I was discovering flat whites during a wonderful kanageroo-filled southern hemisphere summer. I had loads of free time so I went to the book signing by Andrew Leigh, telling him about how terribly guilty I felt about having such a lovely time (whilst swigging on my coffee, obviously). He signed the book "Dear Sam, your wife is a wonderful woman". Lad.
Fully recommend if you just wanna ground yourself in the absolute basics of economics (which is essentially everything).
To sweeten the deal, I'll throw this little story out there: My work sent me to Australia for three months... Forcing me to begrudgingly leave my wife with our 9-month baby in the UK. As she was navigating through long, scream-laden, rainy nights I was discovering flat whites during a wonderful kanageroo-filled southern hemisphere summer. I had loads of free time so I went to the book signing by Andrew Leigh, telling him about how terribly guilty I felt about having such a lovely time (whilst swigging on my coffee, obviously). He signed the book "Dear Sam, your wife is a wonderful woman". Lad.
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November 19, 2025بعد از خوندن حدود چهل درصد از کتاب، نیمه تمام گذاشتمش.به قدری نویسنده از این شاخه به اون شاخه میپرید که واقعا مطلب از دست من میپرید و احساس کردم ادامه دادن کتاب بیهوده است. نویسنده مثل یک پیرمرد پرحرفی بود که خوش صحبت هم نیست و فقط یه جفت گوش مفت واسه شنیدن میخواد.چون کتاب رو نتونستم تموم کنم امتیازی نمیدم.
November 30, 2024
Claudia Goldin's blurb pretty much nails it, "If you read just one book about economics, make it Andrew Leigh's clear, insightful, and remarkable work."
Leigh's book sets out to "tell the story about how capitalism and the market system emerged; discuss the key ideas and people who shaped the discipline of economics; and outline how economic forces have affected world history" and succeeds at all three.
It is relatively short and easy reading, proceeding chronologically from the advent of agriculture to the present day. Underlying it is an immense wealth of scholarship and economic ideas about economic history, the process of growth, and economic concepts like opportunity cost and thinking on the margin that are almost invisibly woven into the fabric throughout the book.
The overarching theme is enthusiasm for the enormous progress we have made economically, the importance of economics in helping foster that progress, but also enthusiasm for a more robust social safety and appreciation of the role of government in addressing myriad market failures.
Most economists would benefit a little from the links it makes between different topics (and could read it quickly) but it is mostly written for--and I would guess enjoyable for--non specialists.
Leigh's book sets out to "tell the story about how capitalism and the market system emerged; discuss the key ideas and people who shaped the discipline of economics; and outline how economic forces have affected world history" and succeeds at all three.
It is relatively short and easy reading, proceeding chronologically from the advent of agriculture to the present day. Underlying it is an immense wealth of scholarship and economic ideas about economic history, the process of growth, and economic concepts like opportunity cost and thinking on the margin that are almost invisibly woven into the fabric throughout the book.
The overarching theme is enthusiasm for the enormous progress we have made economically, the importance of economics in helping foster that progress, but also enthusiasm for a more robust social safety and appreciation of the role of government in addressing myriad market failures.
Most economists would benefit a little from the links it makes between different topics (and could read it quickly) but it is mostly written for--and I would guess enjoyable for--non specialists.
August 24, 2024
In his book How Economics Explains the World, author Andrew Leigh describes events that affected the course of world history. These range widely from discussions on Slavery to Climate Change; from War to Artificial Intelligence. In each case the author tries to draw on economic theory to explain why historical events occurred the way they did. The result is a compendium of interesting titbits.
For example, Leigh discusses how items we consider trivial today – mirrors and clocks – changed society in their day; why gridded cities produced the first skyscrapers; how a slaughterhouse inspired the factory assembly line; how the imposition of import tariffs prolonged the Great Depression; why democracies with a free press are extremely unlikely to suffer a famine; and how the COVID pandemic caused our current bout of inflation.
Leigh’s book has the subtitle “A Short History of Humanity”. This claim makes it a hard book to characterize. It is part Freakonomics (subtitle: The Hidden Side of Everything, 268 pages), part Sapiens (subtitle: A Brief History of Humankind, 512 pages) and part Guns, Germs and Steel (subtitle: A Short History of Everybody for the last 13,000 years, 580 pages).
Compared to these ‘short’ books it is even shorter coming in at 240 pages. The result is a narrative that bounces around leaving the reader hanging at times, and with the economic and historical threads very thin on occasion.
So even though How Economics Explains the World is not the most cohesive of narratives, it does offer an easy-to-read, if incomplete, history. The book contains a multitude of anecdotes that may prompt the reader to embark on more complete readings if they wish to explore some events more fully.
Link to my full review: https://courtofthegrandchildren.com/a...
For example, Leigh discusses how items we consider trivial today – mirrors and clocks – changed society in their day; why gridded cities produced the first skyscrapers; how a slaughterhouse inspired the factory assembly line; how the imposition of import tariffs prolonged the Great Depression; why democracies with a free press are extremely unlikely to suffer a famine; and how the COVID pandemic caused our current bout of inflation.
Leigh’s book has the subtitle “A Short History of Humanity”. This claim makes it a hard book to characterize. It is part Freakonomics (subtitle: The Hidden Side of Everything, 268 pages), part Sapiens (subtitle: A Brief History of Humankind, 512 pages) and part Guns, Germs and Steel (subtitle: A Short History of Everybody for the last 13,000 years, 580 pages).
Compared to these ‘short’ books it is even shorter coming in at 240 pages. The result is a narrative that bounces around leaving the reader hanging at times, and with the economic and historical threads very thin on occasion.
So even though How Economics Explains the World is not the most cohesive of narratives, it does offer an easy-to-read, if incomplete, history. The book contains a multitude of anecdotes that may prompt the reader to embark on more complete readings if they wish to explore some events more fully.
Link to my full review: https://courtofthegrandchildren.com/a...
July 15, 2024
3.5. Pretty interesting but very euro centric. Better title would probably be a history of the capitalist economy, would have been interesting to incorporate Indigenous economies
January 16, 2024
[Disclosure: this review was written for publication in the Tasmanian Times, 2024]
Black Inc. books is releasing an engaging series of Short Histories, including Andrew Leigh’s slim volume on economics, The Shortest History of Economics.
The former Professor of Economics and current Assistant Treasurer writes superbly and distils an ocean of information into a paperback that’s just shy of 200 pages, making the ‘dismal science’ interesting and relevant to everything in our lives.
Andrew Leigh writes well, not just because he knows his subject, but because he’s on a mission – to reassure us that the evolution of a lightly-regulated market economy in a democratic state (arguably what we live in now) is the only rational path to achieve the ‘greatest good for the greatest number’.
He gives us a series of simple, cogent examples of how humans formed societies and economies (almost interchangeable terms in this context), how markets of trade formed and evolved, and how actions taken in and on those markets, according to theory and economic management, had (mostly) expected consequences.
Understanding the basics of economics allows us to distinguish how events in one period can resonate and have consequences that may last through the centuries. In the shorter term, we can see what worked and what didn’t, who is winning and who is losing.
Economics isn’t a science, nor a good predictor, but it is a useful lens to study data on how we live.
Though Leigh admits ‘Capitalism doesn’t guarantee the wellbeing of those who lack capital’, with a modest amount of active government intervention in ‘the market’, most economists suggest the ‘greatest good’ will eventuate, passively, through the mostly unseen mechanisms of that market.
While inequities occur, in sometimes unexpected ways, Leigh regards these as ‘market failures’ – glitches fixable by economic management that steers between totalitarian command and anarchic libertarian ‘small government’.
Leigh sees government itself in economic terms, as a ‘risk manager’, arbitrating wisely for both markets and people who live in and depend upon them.
This slim history illustrates how economic forces have affected global human societies, and convincingly argues that market economies have extended our lives from the medieval ‘nasty, brutish and short’, to the pleasant, extended and relatively wealthy existences we prize today.
Then, in the final chapter, which I hoped would present a cut-through summary of where our history has led us, Leigh disappoints.
After offering mild warnings about ‘market failures’ leading to increasing inequity, he naively catastrophises about AI, and downplays climate with references to uncertainties of outcomes where there are none.
We know what’s happening and what will happen with climate, and to hear an otherwise thoughtful voice like Leigh’s refer to the climate crisis as merely a ‘key vulnerability’ with a ‘chance of very bad outcomes’ is, frankly, shocking to hear from someone so central to critical decision-making.
Leigh is a solidly Centre-Right neoliberal, but declines to address corporate state-capture that blocks genuine action on the biggest ‘market failures’ – global warming and the extinction crisis. This perhaps explains why his government is widely regarded as failing on climate action in favour of economic management that acts to preserve, at all costs, the system that is itself failing to address climate.
Leigh has also failed to include feminist economics beyond references to the gender wage gap and unpaid labour undertaken by women. Nor does he reference ecological economics, and how dependent our economies are on our ecological life-support systems.
Neoliberal economics only sees the living world as an externality outside the area of study, the market.
Leigh wants us to address ‘market failures’ but appears to ignore that inequity is how the global economic system works – capitalism isn’t about maintaining a level playing field for buyer and seller but about seeking constant advantage; any imbalance of power will ratchet the entire system to favour the wealthy and powerful. To fix the ‘market failure’ on climate, for example, governments would need to change the system that has entrenched share-price and corporate control of government as more urgent than the survival of our species.
Whom the ‘market’ isn’t failing is the wealthy corporate investor sector, and billionaires like Kerry Stokes and the Murdochs who own our media. It isn’t failing politicians of the major parties across the world, who refer to ‘the homelessness crisis’ or the ‘cost of living crisis’ as transient local problems that just need the right ‘risk management’ by government.
While I recommend Leigh’s book to anyone wanting to quickly level-up on economic and social history, his dismaying final chapter inadvertently explains why Labor is failing us – not on the usual macro-economic scale (I understand they’re, broadly, doing well as economic managers in the most conservative sense), but on their failure to address a broken system – market economics itself.
Market economics won’t fix climate or biodiversity crises because market investors profit from them. Market economics won’t fix homelessness because it’s working perfectly for investors, and neither major party will stop prioritising the wealthy and powerful because they bankroll the major parties.
Andrew Leigh wisely advises us ‘[not to] forget externalities – the positive and negative impacts of [our] decisions on other people’, but just as his history of economics leads us to praise the market economy, no amount of just-so stories to support it can ultimately justify a system that no longer supports us.
Leigh’s defense of neoliberalism does not resist injustice and oppression in whatever forms they take, or offer a sustainable path forward.
Black Inc. books is releasing an engaging series of Short Histories, including Andrew Leigh’s slim volume on economics, The Shortest History of Economics.
The former Professor of Economics and current Assistant Treasurer writes superbly and distils an ocean of information into a paperback that’s just shy of 200 pages, making the ‘dismal science’ interesting and relevant to everything in our lives.
Andrew Leigh writes well, not just because he knows his subject, but because he’s on a mission – to reassure us that the evolution of a lightly-regulated market economy in a democratic state (arguably what we live in now) is the only rational path to achieve the ‘greatest good for the greatest number’.
He gives us a series of simple, cogent examples of how humans formed societies and economies (almost interchangeable terms in this context), how markets of trade formed and evolved, and how actions taken in and on those markets, according to theory and economic management, had (mostly) expected consequences.
Understanding the basics of economics allows us to distinguish how events in one period can resonate and have consequences that may last through the centuries. In the shorter term, we can see what worked and what didn’t, who is winning and who is losing.
Economics isn’t a science, nor a good predictor, but it is a useful lens to study data on how we live.
Though Leigh admits ‘Capitalism doesn’t guarantee the wellbeing of those who lack capital’, with a modest amount of active government intervention in ‘the market’, most economists suggest the ‘greatest good’ will eventuate, passively, through the mostly unseen mechanisms of that market.
While inequities occur, in sometimes unexpected ways, Leigh regards these as ‘market failures’ – glitches fixable by economic management that steers between totalitarian command and anarchic libertarian ‘small government’.
Leigh sees government itself in economic terms, as a ‘risk manager’, arbitrating wisely for both markets and people who live in and depend upon them.
This slim history illustrates how economic forces have affected global human societies, and convincingly argues that market economies have extended our lives from the medieval ‘nasty, brutish and short’, to the pleasant, extended and relatively wealthy existences we prize today.
Then, in the final chapter, which I hoped would present a cut-through summary of where our history has led us, Leigh disappoints.
After offering mild warnings about ‘market failures’ leading to increasing inequity, he naively catastrophises about AI, and downplays climate with references to uncertainties of outcomes where there are none.
We know what’s happening and what will happen with climate, and to hear an otherwise thoughtful voice like Leigh’s refer to the climate crisis as merely a ‘key vulnerability’ with a ‘chance of very bad outcomes’ is, frankly, shocking to hear from someone so central to critical decision-making.
Leigh is a solidly Centre-Right neoliberal, but declines to address corporate state-capture that blocks genuine action on the biggest ‘market failures’ – global warming and the extinction crisis. This perhaps explains why his government is widely regarded as failing on climate action in favour of economic management that acts to preserve, at all costs, the system that is itself failing to address climate.
Leigh has also failed to include feminist economics beyond references to the gender wage gap and unpaid labour undertaken by women. Nor does he reference ecological economics, and how dependent our economies are on our ecological life-support systems.
Neoliberal economics only sees the living world as an externality outside the area of study, the market.
Leigh wants us to address ‘market failures’ but appears to ignore that inequity is how the global economic system works – capitalism isn’t about maintaining a level playing field for buyer and seller but about seeking constant advantage; any imbalance of power will ratchet the entire system to favour the wealthy and powerful. To fix the ‘market failure’ on climate, for example, governments would need to change the system that has entrenched share-price and corporate control of government as more urgent than the survival of our species.
Whom the ‘market’ isn’t failing is the wealthy corporate investor sector, and billionaires like Kerry Stokes and the Murdochs who own our media. It isn’t failing politicians of the major parties across the world, who refer to ‘the homelessness crisis’ or the ‘cost of living crisis’ as transient local problems that just need the right ‘risk management’ by government.
While I recommend Leigh’s book to anyone wanting to quickly level-up on economic and social history, his dismaying final chapter inadvertently explains why Labor is failing us – not on the usual macro-economic scale (I understand they’re, broadly, doing well as economic managers in the most conservative sense), but on their failure to address a broken system – market economics itself.
Market economics won’t fix climate or biodiversity crises because market investors profit from them. Market economics won’t fix homelessness because it’s working perfectly for investors, and neither major party will stop prioritising the wealthy and powerful because they bankroll the major parties.
Andrew Leigh wisely advises us ‘[not to] forget externalities – the positive and negative impacts of [our] decisions on other people’, but just as his history of economics leads us to praise the market economy, no amount of just-so stories to support it can ultimately justify a system that no longer supports us.
Leigh’s defense of neoliberalism does not resist injustice and oppression in whatever forms they take, or offer a sustainable path forward.
January 28, 2025
a great starter book for those interested in economics. the ending quote "capitalism doesn’t guarantee the wellbeing of those who lack capital" made me do a double take. lots to think about.
September 26, 2025
1. Very accessible & engaging writing
Andrew Leigh has a knack for making big economic ideas digestible. He uses stories, concrete examples (lightbulbs vs wood fires vs LEDs, etc.), and timelines that carry you through ages without losing you.
2. Broad sweep of economic history
The book starts way back (agrarian societies, surplus, trade) and moves to modern issues. It ties economic history to innovations, trade, tech, inequality, public policy etc. You get both micro-concepts (markets, incentives, trade) and macro ones (industrial revolution, globalisation, inequality) in decent measure.
3. Balanced tone + optimism
Andrew Leigh often emphasises how markets, trade, and innovation have improved lives (living standards, health, longevity). He doesn’t act like economics is God’s path, but he makes a persuasive case for why some economic systems have brought huge gains, while also acknowledging failures and inequalities.
Overall verdict
It delivers a well-written, approachable tour through the evolution of economic systems and ideas, explaining why they matter and how they have shaped our world. It’s not the deepest or most scholarly, but it’s honest, engaging and informative.
Andrew Leigh has a knack for making big economic ideas digestible. He uses stories, concrete examples (lightbulbs vs wood fires vs LEDs, etc.), and timelines that carry you through ages without losing you.
2. Broad sweep of economic history
The book starts way back (agrarian societies, surplus, trade) and moves to modern issues. It ties economic history to innovations, trade, tech, inequality, public policy etc. You get both micro-concepts (markets, incentives, trade) and macro ones (industrial revolution, globalisation, inequality) in decent measure.
3. Balanced tone + optimism
Andrew Leigh often emphasises how markets, trade, and innovation have improved lives (living standards, health, longevity). He doesn’t act like economics is God’s path, but he makes a persuasive case for why some economic systems have brought huge gains, while also acknowledging failures and inequalities.
Overall verdict
It delivers a well-written, approachable tour through the evolution of economic systems and ideas, explaining why they matter and how they have shaped our world. It’s not the deepest or most scholarly, but it’s honest, engaging and informative.
December 3, 2024
How Economics Explains the World : A Short History of Humanity (2024) by Andrew Leigh is an impressively short economic history of the world. Dr Andrew Leigh is a former professor of economics at ANU who is now a member of the Australian parliament.
Leigh has written a number of books about economics and is clearly a very smart guy. It’s quite incredible that he doesn’t have a senior job as Treasurer of Finance Minister in the Australian government. However, he is from the Australian Capital Territory. He is not in a strong ALP faction. So, he writes books and hosts podcasts instead of being a major part of the government.
This is the sixth book by Leigh that I’ve read and it is the weakest. It tries to cover too much in too few words. Short books are usually better. But, in this case, a longer book would better suit the aim of writing a book of economic history.
The first five chapters cover economic history up until the twentieth century. This is somewhat typical of economic history books but this book takes it to extreme.
The nine or so chapters on the twentieth century are very quick. They reference everything under the sun. This shows Leigh’s remarkable breadth of knowledge and his understanding. It would be hard not to learn something from them. Leigh is firmly from the center left and the book reflects his opinions there.
How Economics Explains the World is quite a good book. It’s surprising that it was in the Economist’s list of the best books for 2024. It’s too short and Leigh has to move too quickly over the material. However, Leigh writes well, has great understanding and does reasonably well with it.
Leigh has written a number of books about economics and is clearly a very smart guy. It’s quite incredible that he doesn’t have a senior job as Treasurer of Finance Minister in the Australian government. However, he is from the Australian Capital Territory. He is not in a strong ALP faction. So, he writes books and hosts podcasts instead of being a major part of the government.
This is the sixth book by Leigh that I’ve read and it is the weakest. It tries to cover too much in too few words. Short books are usually better. But, in this case, a longer book would better suit the aim of writing a book of economic history.
The first five chapters cover economic history up until the twentieth century. This is somewhat typical of economic history books but this book takes it to extreme.
The nine or so chapters on the twentieth century are very quick. They reference everything under the sun. This shows Leigh’s remarkable breadth of knowledge and his understanding. It would be hard not to learn something from them. Leigh is firmly from the center left and the book reflects his opinions there.
How Economics Explains the World is quite a good book. It’s surprising that it was in the Economist’s list of the best books for 2024. It’s too short and Leigh has to move too quickly over the material. However, Leigh writes well, has great understanding and does reasonably well with it.
April 28, 2025
This is a comprehensive history of economics from prehistoric times to the current times. The book is full of useful information.
Some of the more fascinating information includes the derivation of the word money - the Romans started making silver coins in 269 BC near the temple of Juno Moneta.
The Austrian economist Friedrich von Hayek feared that democratic governments could erode liberty and believed that transitional dictatorships were sometimes necessary.
In 1958, Mao ordered people to scare away sparrows so that the birds wouldn't eat the grain harvest. Due to the absence of the sparrows, the locusts ate the grain instead. Mao had to import 250,000 sparrows from the Soviet Union to return some equilibrium to the ecosystem but this only led to a 40% loss in grain production, causing a famine that killed millions.
Malcolm McLean invented the shipping container in 1956 leading to huge reductions in the cost of shipping items around the world.
Some of the more fascinating information includes the derivation of the word money - the Romans started making silver coins in 269 BC near the temple of Juno Moneta.
The Austrian economist Friedrich von Hayek feared that democratic governments could erode liberty and believed that transitional dictatorships were sometimes necessary.
In 1958, Mao ordered people to scare away sparrows so that the birds wouldn't eat the grain harvest. Due to the absence of the sparrows, the locusts ate the grain instead. Mao had to import 250,000 sparrows from the Soviet Union to return some equilibrium to the ecosystem but this only led to a 40% loss in grain production, causing a famine that killed millions.
Malcolm McLean invented the shipping container in 1956 leading to huge reductions in the cost of shipping items around the world.
November 8, 2024
Оцінка як для книжки своєї категорії — мені сподобався тон книжки, автор пояснює все легко, розважально, на зрозумілих прикладах, використовує цікаві сторітелінги, а ще однозначно говорить про російське вторгнення в Україну без прикрас і спроб виправдати окупантів (вже за це я готова поставити всі зірочки автору). Єдиний момент — книжка локалізується переважно на європейській та американській економіках, але очікувати від найкоротшої історії охоплення всього наївно.
Хороша книжка для тих, хто прагне трішки краще зрозуміти що ж таке економіка і як вона вплинула на історію і розвиток людства, кому цікаво дізнатися як з'явилася гра «Монополія», коли почалася тюльпаноманія в Нідерландах і навіщо проводили екскурсії в паризькій каналізації. Все це з ілюстраціями, фотографіями та цікавими доповненнями.
Хороша книжка для тих, хто прагне трішки краще зрозуміти що ж таке економіка і як вона вплинула на історію і розвиток людства, кому цікаво дізнатися як з'явилася гра «Монополія», коли почалася тюльпаноманія в Нідерландах і навіщо проводили екскурсії в паризькій каналізації. Все це з ілюстраціями, фотографіями та цікавими доповненнями.
May 25, 2025
Lots of information in here; having never looked into economics before I feel like I now understand a lot more about the world’s monetary systems and how they came to be
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August 16, 2026A good one as an introduction to economics and how it applies to our lives. It started with the history and how the essences of economics: scarcity and incentive, shape the civilization. It starts with how economics drive trade and human migration, and also why Eurasia thrived and colonialized Africa and America. It talks about war, great depression, market failure, economic crises, inequality, and even pandemics. How it is structured is a bit scattered and confusing for me but the storytelling is nice. It covers a lot of things on the surface level but can give you nice insights about economics.
December 15, 2024
While reading this book, you might wonder whether there was an error in the title, as it focuses more on economic history than on economics. The first part of the title is accurate - it is a very short book, which happens to be its main redeeming quality. It provides a general and economic history of Western societies, illustrating theories and the works of famous economists through their relevance in specific eras. However, an excessive amount of space is dedicated to history, leaving economic concepts mentioned only briefly rather than as the central focus. As it approaches the modern era, the book adopts an increasingly polemical and political tone. Written in line with contemporary American standards, it allocates more space to a barely known African American activist whose speeches were "rich in economic insights" than to Adam Smith. This is also the first book I've encountered that analyses the text of Fear the Boom and Bust: Keynes vs. Hayek rap battle. While the book primarily offers sound, mainstream economic theories, it also includes some questionable ideas about social development, tech regulation, and inequality, though they are not particularly radical. Overall, this is a boring and meandering book, filled with irrelevant digressions. The history of economics is covered briefly, but the excessive unrelated content makes for a tedious read.
August 26, 2024
So, Mr. Leigh, you're saying that the "Mayflower" sailed to the United States...? (He does, oh yes he does.) A VERY shallow run through... uh, history of the world rather than of economics, as the "science" gets rather short shrift here. And since the man is an economist, not a historian, he gets a lot of stuff only approximately right, if that. Simplifications galore, non sequiturs, some dubious anecdotes... no, I can't say this was a worthwhile reading experience. Stock photos add to the impression of a cheap hack job.
October 9, 2024
This was a book FULLL of information, but i dont think ill ever get to use any of that information, and also there sould be a more organized way to put all of these information together, i mean each chapter just jumps from insight to insight and from story to story all the time.
April 5, 2025
This is too superficial to be interesting. It's basically a sequence of fun facts.
October 19, 2025
5 зірочок, бо тут нема жодного доброго слова про росію. перша половина дууууже цікава. те, що ближче до нашого часу, сподобалося менше.
July 23, 2026
A perfectly outlined history of all major economic trends. Reads at a good pace, and although most (non-)economists among us will recognise big bits from this book (serves as a nice refreshment), it also captures tons of new (perhaps forgotten?) information.
My inner nerdy self loved this book.
4.5/5
——
“Just as there are no atheists in foxholes, there are no libertarians in financial crises.”
“Businessman Joseph Kennedy, father of the future US president John E. Kennedy, apparently told friends that he knew something was amiss when talk of shares spread outside his usual circles: ‘If the shoeshine boys are giving stock tips, then it's time to get out of the market.’ But few saw the crash coming.”
“Suppose you could choose between living healthily for twice as long or having twice as much income - which would you pick? I'd go for the longevity, and I know many friends who would do the same. This point also serves as a reminder that what lies at the heart of economics is wellbeing, not income. As Australian-born economist Justin Wolfers notes, economics is no more about money than architecture is about inches. Money is a useful measuring tool when comparing costs and benefits, but it is not the ultimate end goal.”
My inner nerdy self loved this book.
4.5/5
——
“Just as there are no atheists in foxholes, there are no libertarians in financial crises.”
“Businessman Joseph Kennedy, father of the future US president John E. Kennedy, apparently told friends that he knew something was amiss when talk of shares spread outside his usual circles: ‘If the shoeshine boys are giving stock tips, then it's time to get out of the market.’ But few saw the crash coming.”
“Suppose you could choose between living healthily for twice as long or having twice as much income - which would you pick? I'd go for the longevity, and I know many friends who would do the same. This point also serves as a reminder that what lies at the heart of economics is wellbeing, not income. As Australian-born economist Justin Wolfers notes, economics is no more about money than architecture is about inches. Money is a useful measuring tool when comparing costs and benefits, but it is not the ultimate end goal.”
October 1, 2025
I like economics?!? Watch me read million more books about it…
“ I hope that, in reading it, you see the history of humanity a little differently. When you look at a map of the world, recall how the shape of continents helped determine who colonised who. When you see a mirror, think about how its invention created consumer culture. When you use a big tech platform, consider the way in which you are effectively paying with your data rather than with cash. Recognise your good fortune to live at a time when most of humanity has access to schools,”
“When making a tricky decision, weigh the costs and benefits. Consider the opportunity costs - what are you giving up? Think on the margin - asking whether one more of something is worth having. And don't forget externalities - the positive and negative impacts of your decisions on other people.”
“ I hope that, in reading it, you see the history of humanity a little differently. When you look at a map of the world, recall how the shape of continents helped determine who colonised who. When you see a mirror, think about how its invention created consumer culture. When you use a big tech platform, consider the way in which you are effectively paying with your data rather than with cash. Recognise your good fortune to live at a time when most of humanity has access to schools,”
“When making a tricky decision, weigh the costs and benefits. Consider the opportunity costs - what are you giving up? Think on the margin - asking whether one more of something is worth having. And don't forget externalities - the positive and negative impacts of your decisions on other people.”
January 6, 2025
A delightful little book that lives up to the title!
September 17, 2024
Andrew Leigh's "The Shortest History of Economics" provides a sweeping overview of economic development, starting from the earliest days of human civilization up to the present day. Leigh explores how innovations like agriculture, specialization, trade, and money laid the foundation for modern economies and helped transform nomadic hunter-gatherer societies into settled, complex civilizations. The book examines key economic turning points, such as the Industrial Revolution and the rise of central banks, offering insight into how these moments shaped the way economies function today.
The agricultural revolution around 10,000 BCE was the first major shift, allowing humans to produce food surpluses and smooth consumption over time. This development paved the way for specialization, which in turn led to trade. Early money systems emerged to facilitate trade, and the principle of comparative advantage became a key driver of economic efficiency, with people producing what they were best at.
The invention of the printing press in 1440 was another revolutionary moment, making knowledge accessible and fueling innovation. Leigh discusses how innovations like this are non-rival, meaning they can be shared without being depleted, unlike physical goods. The spread of knowledge boosted economic growth in Europe and introduced the challenge of how to incentivize creativity while sharing ideas. The printing press exemplified how ideas, unlike tangible goods, could change the economic landscape by fostering widespread innovation.
Leigh also delves into the Industrial Revolution, explaining how technological advancements, such as the steam engine, catalyzed industrialization and urbanization. This revolution, coupled with Adam Smith’s concept of the invisible hand and John Stuart Mill’s ideas of opportunity cost, provided a framework for understanding how individuals’ self-interest in competitive markets could lead to overall societal benefit. However, the darker side of industrialization—urban poverty and harsh working conditions—also required societal responses like the Poor Laws.
The book explores the impact of World War I and the Great Depression, leading to a significant divide between Keynesian economics, advocating for government intervention, and Hayek’s belief in the necessity of market corrections. Keynes’ vision of government spending during economic downturns contrasts with Hayek’s fear of overreach, illustrating ongoing debates about how best to manage economies.
The development of national income accounting and international institutions like the World Bank and International Monetary Fund in the post-World War II era laid the foundation for a new global economic order. Central banks, gaining independence in the 1980s, became central actors in managing national economies by controlling inflation through interest rate adjustments. As economies grew more interconnected, economic development theories from thinkers like Justin Yifu Lin and Mariana Mazzucato emerged, highlighting the role of governments in shaping innovation and growth.
Leigh also addresses the growing inequality that has accompanied globalization, particularly through the research of Branko Milanović, who found that while emerging economies like China and India saw significant gains, many lower-middle-income individuals in developed countries experienced stagnation or decline, while the wealthiest saw massive increases in income.
In conclusion, Leigh’s book outlines the continuous process of innovation, adaptation, and debate that has characterized economic history. From the agricultural revolution to modern monetary policy, human societies have constantly developed new ways to address scarcity and improve living standards. Central banks, trade, and technological innovation continue to shape the global economy, while debates over interventionist versus free-market approaches remain at the forefront of policy discussions. The story of economics, as Leigh presents it, is one of ongoing transformation, with each era building on the innovations and challenges of the past.
The agricultural revolution around 10,000 BCE was the first major shift, allowing humans to produce food surpluses and smooth consumption over time. This development paved the way for specialization, which in turn led to trade. Early money systems emerged to facilitate trade, and the principle of comparative advantage became a key driver of economic efficiency, with people producing what they were best at.
The invention of the printing press in 1440 was another revolutionary moment, making knowledge accessible and fueling innovation. Leigh discusses how innovations like this are non-rival, meaning they can be shared without being depleted, unlike physical goods. The spread of knowledge boosted economic growth in Europe and introduced the challenge of how to incentivize creativity while sharing ideas. The printing press exemplified how ideas, unlike tangible goods, could change the economic landscape by fostering widespread innovation.
Leigh also delves into the Industrial Revolution, explaining how technological advancements, such as the steam engine, catalyzed industrialization and urbanization. This revolution, coupled with Adam Smith’s concept of the invisible hand and John Stuart Mill’s ideas of opportunity cost, provided a framework for understanding how individuals’ self-interest in competitive markets could lead to overall societal benefit. However, the darker side of industrialization—urban poverty and harsh working conditions—also required societal responses like the Poor Laws.
The book explores the impact of World War I and the Great Depression, leading to a significant divide between Keynesian economics, advocating for government intervention, and Hayek’s belief in the necessity of market corrections. Keynes’ vision of government spending during economic downturns contrasts with Hayek’s fear of overreach, illustrating ongoing debates about how best to manage economies.
The development of national income accounting and international institutions like the World Bank and International Monetary Fund in the post-World War II era laid the foundation for a new global economic order. Central banks, gaining independence in the 1980s, became central actors in managing national economies by controlling inflation through interest rate adjustments. As economies grew more interconnected, economic development theories from thinkers like Justin Yifu Lin and Mariana Mazzucato emerged, highlighting the role of governments in shaping innovation and growth.
Leigh also addresses the growing inequality that has accompanied globalization, particularly through the research of Branko Milanović, who found that while emerging economies like China and India saw significant gains, many lower-middle-income individuals in developed countries experienced stagnation or decline, while the wealthiest saw massive increases in income.
In conclusion, Leigh’s book outlines the continuous process of innovation, adaptation, and debate that has characterized economic history. From the agricultural revolution to modern monetary policy, human societies have constantly developed new ways to address scarcity and improve living standards. Central banks, trade, and technological innovation continue to shape the global economy, while debates over interventionist versus free-market approaches remain at the forefront of policy discussions. The story of economics, as Leigh presents it, is one of ongoing transformation, with each era building on the innovations and challenges of the past.
February 28, 2024
Eversince I chose the commerce stream, Economics has been my favorite subject. More so, I was obsessed with it during my school time. This book reminded me of my long-lost love for the subject. Sure, this is about the history of economics; which means that the book tells you about how the major events that happened in the world like industrialization, world wars, the Great Depression, and pandemics changed the course of the subject overall and affected the world economy.
As the title of the book suggests ‘shortest’, you only will find the jist of everything. Events are mentioned in crisp and direct form. It seems like the author is connecting the dots and trying to make sense of everything that has happened so far and built the world economy as it is today. And it all makes sense.
‘Economics can be defined as a social science that studies how people maximize their well-being in the face of scarcity.’ <3 (I haven’t read such a crisp and clear definition of economics anywhere).
The arguments made in the book are presented with basis and proofs. One can understand how this world as a whole works by reading the 200-pager. Every page and sentences have information in them that you may like to know if you want to understand the whole mechanics.
You don’t need to know anything beforehand, everything is explained in there that too very crisp and direct. (However, you may need to look it up, if you are not aware of these major events. Simple googling would be sufficient). However, you would not find much in the Indian context though except here and here occasionally, evidently so.
If you have the urge to understand world history and economics but do not know where to start, this book may be a good starter. If not everything in depth, you would be able to decide which ones you are interested in. And not just the readers interested in the subject, I believe people without any prior knowledge and interest in the subject should read it to understand how any major event, development, trend or activity affects the economy. Well, that is capitalism (free market) for you!!
*Disclaimer: I received a copy of this book from the publisher in exchange for an honest review."
As the title of the book suggests ‘shortest’, you only will find the jist of everything. Events are mentioned in crisp and direct form. It seems like the author is connecting the dots and trying to make sense of everything that has happened so far and built the world economy as it is today. And it all makes sense.
‘Economics can be defined as a social science that studies how people maximize their well-being in the face of scarcity.’ <3 (I haven’t read such a crisp and clear definition of economics anywhere).
The arguments made in the book are presented with basis and proofs. One can understand how this world as a whole works by reading the 200-pager. Every page and sentences have information in them that you may like to know if you want to understand the whole mechanics.
You don’t need to know anything beforehand, everything is explained in there that too very crisp and direct. (However, you may need to look it up, if you are not aware of these major events. Simple googling would be sufficient). However, you would not find much in the Indian context though except here and here occasionally, evidently so.
If you have the urge to understand world history and economics but do not know where to start, this book may be a good starter. If not everything in depth, you would be able to decide which ones you are interested in. And not just the readers interested in the subject, I believe people without any prior knowledge and interest in the subject should read it to understand how any major event, development, trend or activity affects the economy. Well, that is capitalism (free market) for you!!
*Disclaimer: I received a copy of this book from the publisher in exchange for an honest review."
February 22, 2026
An EA Australian politician? Gasp!
Great to get an overview of economic history, although a lot of the terms I've already encountered from online reading and intro micro and macro economics. The changes in paradigm shifts in thinking is good to remember that what is current dogma is probably not forever.
I liked the final call for introspection on the role of money and governments. Leigh is pro jobs as he thinks the identity of your job has a positive impact on people beyond the money. I think I tend to agree but tbh humans are adaptable.
Great to get an overview of economic history, although a lot of the terms I've already encountered from online reading and intro micro and macro economics. The changes in paradigm shifts in thinking is good to remember that what is current dogma is probably not forever.
I liked the final call for introspection on the role of money and governments. Leigh is pro jobs as he thinks the identity of your job has a positive impact on people beyond the money. I think I tend to agree but tbh humans are adaptable.
October 23, 2024
This is a great, great book, the best single session book about economics for a lay audience that I have ever read (and I've even written one, Trillion Dollar Economists, aimed primarily at a business audience). Leigh has gift for distilling the essence of difficult concepts into short digestible sentences. He covers the waterfront in economics in a thoroughly enjoyable way
February 24, 2026
“Sorry Paul McCartney, money can buy you love.”🤣
March 20, 2025
Мені цікава економіка і ця книга для мене була супер. Вона достатньо популярно описана, якщо є якісь терміни, то вони пояснюються. Тут розповіли як еволюцію економіки, так і згадували багато цікавих фактів з різних сфер. Також з цікавого тут неодноразово згадували про мита і їх вплив на економіку, що мені дало більше інсайтів і розуміння по ситуації Америки з митами. Під кінець ставало читати все складніше, бо з розвитком економіки і більше наукових термінів і складних досліджень описувалося. Також з цікавого книга не виключно європоцентрична, а згадує багато і про країни Азії, Америки і що для мене цікаво - Австралію(бо про неї рідко щось пишуть у книгах).
Рекомендую короче)
Рекомендую короче)
February 14, 2025
Pretty run of the mill, broad scope, economics book. If you're familiar with economic theory and history, there is nothing new for you here. If you aren't, this is a great place to start. I found this not really to be an analysis but a recitation of how economic theory has changed over the last 500 years and how it molds, and is molded by, politics and society. Not a thought provoking read for me.
A much better and more granular version of this book would be Mariana Mazzucato's The Value of Everything
https://www.goodreads.com/book/show/2...
A much better and more granular version of this book would be Mariana Mazzucato's The Value of Everything
https://www.goodreads.com/book/show/2...
July 6, 2026
Fun to read if you like Econ history but could’ve been organized/structured better. Review later
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