Reading a book about economics is probably good for anyone in today’s business world or for myself, a small business coach. Yet, the authors, Steven D. Levitt and Stephen J. Dubner, of Freakonomics provided their readers a lot more than just numbers.
We are entering to the 21st century with different companies all over the world which is designed during the 19th century.
This is an entirely different approach to business and work when it deals with economics.
Economics is leading a management thinkers and practitioners that creates their own economic policies either it belongs to monetary or fiscal policies as a new approach and it will force us to think everything we know. This will be an economic revolution in economic management towards the future.
Ok, a couple of disclaimers right up front: 1) SuperFreakonomics is a follow-up book to the authors’ first book – Freakonomics. I didn’t read Freakonomics, and as it turns out, you don’t have to read the first one to get the second one – these aren’t vampire novels; 2) More than likely, I would not have read Super Freakonomics if I hadn’t been sent a copy to review. Why? The word “freakonomics” is way to close to the word “economics” which, for a creative person like me, is a topic much like a bottle of wine – puts me right out. But I will tell you this – freakonomics is MUCH more interesting than plain, old economics. Here’s why:
In spite of the overly witty full title – Super Freakonomics Global Cooling, Patriotic Prostitutes and Why Suicide Bombers Should Buy Life Insurance – the book is actually a fascinating tale of how economics plays into even the most bizarre areas of modern life. I guess that is what authors Steven Levitt and Stephen Dubner wanted to convey with that extravagant title – they should have just let the content speak for itself, but I know, its all about getting people to OPEN the book, I get it, really.
This concise description of the analysis of demographics and the correlation to markets, leads one invariable to the same conclusion as is reached by the author. No words are minced by Daniel A. Arnold as he goes about explaining that we are at or near then next great economic depression. Recent events have shaken consumer confidence, but after you read this book you will be confident that the greatest depression of all time is around the corner.
Mr. Arnold expertly lays out the facts and correlates prior recessions and depressions to a demographic he calls the big spenders, a sub-demographic of 45-54 year olds. Charts and Graphs are expertly used to illustrate each correlation of the demographic to the stock market history. At the end of the book to conclusion is irrefutable. Economic conditions are mostly dictated by population distribution and as the 100,000,000 baby boomers move toward retirement and slow down their spending, the economy will slow also. “The boomers as a group approach in size the entire population of Japan – every man woman and child! Think of it. Try to get your mind around the magnitude of it.” The analysis is crisp, clear and concise. The conclusion is a stark realization of an economic inevitability, a depression longer and deeper than has ever occurred in our history is immanent.