Understandable Economics: Because Understanding Our Economy Is Easier Than You Think and More Important Than You Know

by Howard Yaruss

"This essential primer on finance and economics provides readers with a practical understanding of our economy and the ability to identify, understand, and advocate for constructive solutions to the problems we face"--

Genres: Economics, Nonfiction, Business

272 pages, Hardcover

Published September 15, 2022

Reviews

[Klejton · Rating 1 out of 5]

Pure garbage. This has nothing to do with making economics “understandable”, this is just a random guy asserting his opinions, often with little evidence and engagement with those who think differently.

“Many other advanced nations, particularly the Scandinavian nations and several nations in Eastern Europe, have managed to avoid the rapid rise in inequality that America has experienced. These countries have similar economic systems to ours, so “capitalism” isn’t to blame. In fact, there is no evidence that our economic system, which has brought so much prosperity to so many people over the last couple of centuries, is fundamentally flawed or that an alternative system would work better.“

This is factually not incorrect but expressed in a very manipulative way. Inequality has risen in Scandinavian countries as well, although not to the same degree as in the united states. This is a global trend, with varying degrees of intensity but a trend nonetheless. Additionally, this is not new. Any historical research in inequality shows that the period after WW2 was an exception and that capitalism has simply reverted back to its natural state with the end of Keynesian economics. The author simply asserts that “no alternative system would work better” but doesn’t even bother to address any arguments by those who propose them.

You write a book that supposedly seeks to vitalise economics and make it reachable to the common person and yet he repeats the same dogmas found in standard economic textbooks, with little evidence to support them.

[Avid · Rating 5 out of 5]

This book has officially replaced “naked economics” as my favorite econ book for people like me who really struggled with the topic in school. The key word here is Understandable. It really was, and i loved it for that.

[Leslie · Rating 4 out of 5]

Thanks to Netgalley and Rowman & Littlefield, Prometheus for the digital galley of this book.

Let’s face it. Our economy is a mess, and getting worse by the day. Not for the billionaires, but for the other 99% of us with modest goals, trying to pay our bills and enjoy a few treats every now and again. Economics seems daunting and way about most of our understanding, but Yaruss presents a more approachable study of the field with this book, exploring the way that it works and asking/answering questions such as, Why is inequality soaring and what can we do about it? Do tax cuts for the wealthy create jobs or just create more inequality? Where does money come from, why does it have value, and who controls it? What does the Fed do and how does it affect our lives? Could alternative currencies like Bitcoin replace the dollar? Is our national debt a threat? Why do so many people believe free trade is good if it causes some people to lose jobs? Why does the economy regularly turn down and how can we get it back on track? And others.

I’ve had a passing interest in economics the last ten years or so and even considered going back to school to study it, but then I realized that would probably make me hate it, even if I understood it a little more, so I seek out books like this one, ones that make sense and approach the topic realistically and directly. I learned a lot from this book, and I definitely recommend it if you’re looking to understand our economy a bit better but want to avoid all of the confusing jargon designed to keep regular people confused.

[Kerri-Anne Wilson · Rating 5 out of 5]

This should be mandatory reading in high school.

[David B · Rating 5 out of 5]

Great read for anyone who wants to better understand what they're hearing in the news and politics about the economic system.

This book got me jazzed up- I was surprised at how clear and interesting the author was able to write about our economic system. If you've ever taken an economics class and walked away still not understanding how the economy actually works, then this book is for you. There are no charts or formulas- just a highly readable (sometimes even funny) narrative that explains things I've always wondered about or heard about, but never really understood. The book really leaves readers form their own opinions, to become more informed voters and advocates for better policies. I never would have thought I would find a book about economics that is a page turner- I didn't want to put it down until I finished reading it. I walked away really appreciating that economics isn't an abstract science based on math, it's really about our values and choices as a society.

[Steve · Rating 5 out of 5]

I enjoyed this book. I found the writing very clear and done in such a way that a background in finance or economics isn’t necessary to understand and enjoy this book. I also found the writing compelling and it was hard for me to put the book down. Howard Yaruss writes with a conversational tone and with some humor. I found the book rather more prescriptive than just descriptive but I was fine with this as Yaruss supports his points with studies. Thank you to Netgalley and Rowman & Littlefield, Prometheus for the advance reader copy.

[Daniel Hardy · Rating 5 out of 5]

I liked this book. I listened as an audiobook so I didn't give it 100% attention but I did listen fairly closely to much of it. It's a good intro level book that explains a LOT, the type of things that leave me thinking "I feel like this should be taught as adulting 101."
I'm not a capitalist, but even so, living in the USA, it's important to understand how "all of this" works so that we can see what's working against us.
I would recommend it to clients, particularly those who are feeling like they need a more "adultier adult" when it comes to "all this money stuff."

[Richard A Robbins · Rating 5 out of 5]

A great, easy read giving a basic overview of economics

I learned and understood more about economics and how our economy works from reading this book than I did from getting an MBA from an Ivy League university. Yaruss does a great job keeping it simple and talking in basic terms, avoiding complicated formulas and economic theory, to achieve his goal of making economics understandable. I strongly recommend this book.

[Simone · Rating 5 out of 5]

Great book to understand and maybe find a way to change the rules so that we can have a more equitable society. The author shows clearly why a more equitable prosperous society benefits everybody. The book is very accessible, clearly engaged, yet manages to stay away from preconceived notions and labels. Highly recommend it.

[Walter Ullon · Rating 3 out of 5]

The first thing you need to know about this book is that it lives up to its name. It makes modern economics understandable by subjecting common talking points and platitudes about the economy to the light of common sense.

Yaruss really wastes no time in dispelling with common assumptions and definitions - from the get go he makes sure you understand what Capitalism (and other “isms”) is and why people are losing faith in this system.

He then explains:

- the sources and consequences of income inequality
- how money works (and comes into being)
- the relationship between spending, income, and production
- free trade and tariffs
- boom and busts cycles
- monetary policy
- GDP and National Debt
- and how the Federal Reserve Bank works

That last one in particular is extremely well-done and quite an eye-opener. I thought I knew what it meant when people quipped “the Fed is printing money”, but I was totally clueless, it turns out. I like it when the clueless is smacked right out of me.

However, and this is an important point to consider if you are thinking about reading this book, Yaruss will not only explain these concepts, he will give you his considered opinion on them as well and what do to about it.

Why? Cause as he points out in the epilogue, he wanted to name the book “Economics for Activists”. Hence, he wants you to understand these institutions, and the forces applying leverage on them, so that you can think for yourself and begin voting for change. As he points out, much ado is made about who the President appoints to the Supreme Court, yet, the Board of Governors of the Fed is also appointed in similar fashion. But their decisions often go unnoticed and have outsized and lasting effect on each of us, economically.

You might care about the above because you won’t be getting a “neutral” opinion form Yaruss - it’s biased and that’s ok, he makes sure you understand where he’s coming from. This is more noticeable in some of the chapters where he discusses solutions, and those tend to be the least-entertaining ones since he wants to pontificate a bit. But it’s not awful by any measure.

Another thing you might want to consider is that this book uses a lot of examples (instruments, institutions, policies, etc.) taken from the US economy - though the concepts could apply to any economy, you’d be seeing them through star-spangled glasses. Hence, some chapters might not be as relevant to you if you live outside of the United States. So now you know.

I had initially assigned the book 5 stars, then I got back into reading The Bitcoin Standard by Ammous, and to put it nicely, it makes this book look like it was written in crayon. That's not to say that it is bad, it's just that in terms of depth and presentation of intricate concepts, it is far more simplistic and light-reading. Ideologically, they are not what I would call diametrically opposed, but close. While Ammous is a disciple of the Austrian school of economics, and favors a more libertarian and free-market economy approach to fiscal and monetary policy, Yaruss is more of an interventionist; a proponent of MMT (modern monetary policy) who believes the government needs to spend (and thus print) more in order to achieve its policy goals. Ammous sings the praises of saving and investing and letting the market determine the price of goods and thus more efficiently distribute them, while Yaruss points out that too much saving is bad cause it fails to drive the economy forward. I do not agree with Yaruss on this point, but it's worth reading about.

Regardless of my objections, this is one that should be made required reading in high schools and colleges all across the country - it is truly understandable and makes its point clearly and unapologetically - but it should not be taken as gospel and should be accompanied by a similar (but ideologically opposed) complement.

Recommended!

[Mike Cheng · Rating 2 out of 5]

By author Howard Yaruss’s own admission the original title was “Economics for Activists”, which is a more appropriate title given that much of this book is about addressing social inequality and seeking more government intervention, regulation, and wealth redistribution. Topics include GDP, what money is and isn’t (with some discussion about cryptocurrencies), and global trade, though a lot of the subject matter is described in very rudimentary (read: crude) terms. To be fair, some of the information was informative - specifically the workings of the Fed and Monetary Policy (i.e., Open Market Operations). I also appreciated Mr. Yaruss’s statement that the public should pay more attention to who POTUS appoints (and the Senate confirms) to the Fed’s board of governors. Where the book falls short is the insertion of political biases and desire for activism, which would have been fine if Mr. Yaruss stuck with his original title. Little, and sometimes no alternative viewpoints are presented besides some nebulous exaltation for capitalism over socialism. For example, corporations are caricatured as rapacious villains and their role in society is viewed through the lens of oppressor vs. oppressed; there is no discussion about the role of the corporation in allowing smaller investors to get theirs by pooling resources, or how the dilution of risk (and limitation on personal liability) has promoted innovation, increased productivity, and improved the quality of life for everyone. In other words, this book is not meant to teach so much as it is to advocate for progressive policy. Mr. Yaruss also appears to be a strong proponent of Modern Monetary Theory (MMT), most specifically that the government pull whatever levers it can to increase the money supply and to spend freely - with the only limiting factor being the specter of hyperinflation. The most glaring omission of the book (for me) is that there is no discussion about tradeoffs and second order effects, which imho, is the most important component that any book on basic economics should discuss.

[Jennifer · Rating 5 out of 5]

Everyone should read this book. Given all the talk these days about various economic policies, this books helps to explain what it all means in plain, simple terms. Harold Yaruss, the author, covers the GDP, the Fed, tariffs, inflation, federal debt, income taxes, types of recessions and so much more. Dare I say Yaruss makes economics even interesting.

There are a couple quotes in the book that really resonated with me -

- Alexander Hamilton: “A national debt, if not excessive, will be to us a national blessing.”The chapter on the national debt really changed my perspective. I used to buy into politicians’ concerns about the rising national debt. The number is undoubtedly massive. But putting it into context with the average debt per person in the US and how much debt individuals take on via mortgages, credit card, car loans and student debt, the national debt wasn’t a scary number at all. Now I understand why the brilliant Alexander Hamilton said the national debt can be a blessing.

- Louis Brandeis, former US Supreme Court justice: “We can have democracy in this country or we can have great wealth concentrated in the hands of a few, but we can’t have both.” This book was written in 2022, but reference to this quote couldn’t be more true today.

Five shiny stars! That’s not an inflation-adjusted rating either. It’s this book’s true value. Highly recommend to anyone and everyone!

[William Kent · Rating 2 out of 5]

This book lost me as I made it further into reading. To be fair, there are many good explanations in here on how our economy works, specifically on the Federal Reserve and banking as a whole. That’s about the extent. The rest of the book attempts to provide more explanations, but it’s coupled with the author’s own beliefs that come off entirely arrogant.

The original title, “Economics for Activists”, is a far better description for this book. My biggest issue is the author speaking in absolutes showing agreement for the same policies that led the United States to their economic issues today.

Some of the ideas supporting Modern Monetary Theory and stunting corporate growth are absurd. Reading these parts were rather disappointing after the informative beginning. Furthering these ideas would only make existing issues worse.

Someone with no economics background could learn from parts of this book, but any subjective sections should be taken with a grain of salt.

[Becky · Rating 4 out of 5]

I used this book in a semester long economics study with my homeschool co-op students, ranging in grades 8-10. It was a denser but more thorough read than another resource we used. I felt Yaruss covered complex topics like inflation, the Federal Reserve, bonds, and the business cycle in an accessible way,
leaving out unnecessary jargon. I also appreciated the way in which the author brought in questions of social responsibility, responsible capitalism, and what moral obligations involve the making of money. Highly recommend for anyone looking to understand economic policy at play in our society.

[Debra Hunter · Rating 5 out of 5]

Tariffs, GDP, regressive and progressive taxes - all of these terms are in the news today. I sort of knew what these things were, but my last economics classes (micro and macro) were taken 30+ years ago and I wanted a refresher course. This gave me exactly what I needed, including precise definitions of key economic terms along with a history of economic policy in the US - what worked and what has not. Note that Professor Yaruss seems to have a moderately liberal perspective on economic policy so if you’re MAGA or a libertarian you’ll disagree with some parts of this book, but nothing wrong with that (I myself am with the Prof). Very readable and highly recommended.

[Kevin S · Rating 5 out of 5]

I couldn't put this book down. It answered so many questions I had over the years about where money came from, how the government's budget worked, why the economy turns down, what the government does to help get it back on track, what the Fed does, what investment banks/private equity/hedge funds actually do, etc. It is beautifully written and very easy to read. Most importantly, the author tries to give information (the book reads like he is telling a story) and avoids making value or political judgments. I both learned a lot from the book and really enjoyed it.

[Garrett · Rating 5 out of 5]

Not a big reviewer, but felt I should give this book a specific shoutout because it really is understandable economics. Had incredible difficulty grasping some of the concepts that other economics books put forth, yet this one really takes the time to explain everything big and small, and expand off of each lesson from previous chapters. Would absolutely love a sequel book getting a bit more in depth on some of the economic concepts that are tougher to understand.

[WiseB · Rating 4 out of 5]

Even though economics is not a stranger to me, this book does a good job for general public to understand the subject from the perspective of how the Economic System, People, Business, Economic Cycle and Government interact under different states of the economy. This include both the micro and macro economics approach and actions by individuals, businesses and governments ... though it is based using the United States per se when referring to Government and economy.

[Cheryl Idell · Rating 5 out of 5]

I never thought a book about Economics could be so clear and, dare I say, fun to read. The author writes in such a straightforward, interesting and humorous way, that he actually makes you want to learn about what makes the economy tick. In today’s challenging times, it’s especially important to understand the concepts that Howard Yaruss writes about.

[James · Rating 4 out of 5]

Understandable Economics stands out form many other finance books by discussing how both sides of the political spectrum have failed the US people and continue to present plans that are divorced from historical precedence and real data. Unfortunately, most of these interesting details/data/discussions are pushed to the back half of the book.

[Admiralblizz · Rating 2 out of 5]

The beginning is fantastic and easy to read. However, as the book progresses, the author provides too many blanket and opinionated statements as facts and "common sense". It is a shame to falsely advertise a book as "understandable economics" when the book is primarily attempting to indoctrinate a certain viewpoint on the economy.

[Rachael · Rating 5 out of 5]

Everyone should read this book - mandatory reading. I only took 3 weeks of economics in my education and this book provides all of the basics and more in an understandable way. It’s so well researched and written, for laypeople or economists.

[Mirela Q. · Rating 5 out of 5]

“If you can’t explain it simply, you don’t understand it well enough”

[Caroline Hess · Rating 5 out of 5]

I loved this book for what it is, and appreciated the author’s dedication to breaking down cumbersome economic principles for the average American. The book is also written through the lens of the current economy so it was completely relevant (unlike how some textbook or education manuals can be). Lastly, the author’s dismissal of “left wing”/“right wing” language (in regards to economics) in favor of language that describes and promotes positive and executable policy was a refreshing reminder that not all activists are victim to blinding political affiliation.

[Zoe · Rating 5 out of 5]

Best book on economics I've ever read. Clear, accessible, and with solutions for how to solve some of the problems our economic system creates.

[Rayfes Mondal · Rating 5 out of 5]

Easy to understand primer on how our government and economy interact along with tax and monetary policy suggestions. Only lightly touches on politics (fortunately).

[Cory Wallace · Rating 4 out of 5]

As the title implies, this was the first book I read about economics that was written in an understandable way.

[Marisa Mount · Rating 4 out of 5]

Easy to understand, and I like that the author doesn’t take sides politically in terms of economic policy advocation.

[Michael Boe · Rating 3 out of 5]

Good book, really informative if you don't have much knowledge in how money works. I'll definitely read through the whole thing again sometime while taking notes

[Ramesh Naidu · Rating 5 out of 5]

An outstanding book!!! It simplifies complex concepts so that anybody can understand and the author underscores the importance of every adult understanding basic economics ,it is critically important that we vote sensible candidates to power , and vote out elected representatives who do not understand and thereby do irreparable harm to the economy and our country.

An interesting anecdote is where he states how much better it would have been if the govt had helped houseowners (it would have been an herculean task to get it done in time ) instead of cash infusions into banks after the great recession of 2008 .
Another point that he belabors is corporate bailouts and how little it actually helps us consumers or even mid and low level employees of these companies that get bailed out.

All in all , a book that I will keep returning to