Pitfalls in Economic Thinking

By Maher Kababji

One of the main functions of a government is to sustain all its population at or above the prosperity level which expresses the feasible material standard of living that an economy can provide. Governments failed to realize prosperity. Financial distress is increasing. Corruptions are going on around the world. Poor is becoming poorer. Living standard of middle class is declining. Relatively small number of individuals and corporations are controlling huge pools of capital. Public debt is increasing. Confidence in currencies is deteriorating.

In order that an organized body of knowledge might be classified as science, its hypothetical law must be based on facts. Unlike any other social science, fallacies are the root of the technique of thinking in economics. It is time to change.

This book aims to discuss in simple wording each of the factors that causes the failure of the present economic systems to realize prosperity, highlight the pitfalls in economic thinking, and introduce an alternative fair economic system that would reflect fair economy and advance the needs of humanity as a whole.

• Language: English
• Publisher: Maher Kababji
• Release date: Mar 18, 2017
• ISBN: 9781370796007

Book preview

Pitfalls in Economic Thinking

By

Maher D. Kababji

Copyright 2017 Maher D. Kababji

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Published by Maher D. Kababji at Smachwords

Smashwords Edition, License Notes

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Table of Contents

Introduction

Chapter 1: Economic Resources

Chapter 2: Economic Activities

Chapter 3: Market and Prices

Chapter 4: Exchange and Money

Chapter 5: Finance

Chapter 6: Foreign Currencies

Chapter 7: Redistribution of Wealth

Conclusion

Abstract

One of the main functions of a government is to sustain all its population at or above the prosperity level which expresses the feasible material standard of living that an economy can provide. Governments failed to realize prosperity and financial distress is increasing. This book aims to discuss in simple wording each of the factors that causes the failure of the present economic systems to realize prosperity, highlight the pitfalls in economic thinking, and introduce an alternative fair economic system that would reflect fair economy and advance the needs of humanity as a whole.

Introduction

Financial distress is increasing. Corruptions are going on around the world. Prices are soaring. Poor is becoming poorer. Living standard of middle class is declining. Relatively small number of individuals and corporations are controlling huge pools of capital. Public debt is increasing. Confidence in currencies is deteriorating. The bursting of several financial bubbles in last decades points to the fact that present economic systems have failed to achieve the economic goals.

The most dominant economic systems at present are capitalism and socialism. Some Islamic countries such as Iran practice what is so called Islamic economic system. In practice, they imitate traditional capitalistic measures under different names.

The socialist planned economies failed to realize its target of equality. Capitalism has been transformed into monopoly-finance capitalism leading capitalists to earn wealth through foul means.

In order that an organized body of knowledge might be classified as science, its hypothetical law must be based on facts. Unlike any other social science, fallacies are the root of the technique of thinking in economics. By the lapse of time, theses fallacies have been blindly accepted as if they represent a part of the natural life which people have to live with.

Economics is concerned with prosperity as the material aim that contributes to the nonmaterial ultimate objective of happiness. It studies the many activities undertaken in relation to wealth. Economic activities have their origin in the wants of a community. They take place in the framework of an economic system. Economic system organizes the ways by which a society utilizes available resources so as to produce and accumulate wealth and the ways by which wealth is exchanged and distributed.

Failure of present economic systems to realize prosperity makes it necessary to structure an alternative system that would reflect fair economy through reviewing, in simple wording, the foundations on which present systems are based.

Chapter: 1

Economic resources

An economic resource is any asset used to produce goods and services that meet human needs and wants. The economic resources include natural and human resources.

Natural resources

Natural resources are derived