"Naked Economic" by Charles Wheelan Review and Analysis

“Naked Economics” Charles Wheelan

In “Naked Economics,” Charles Wheelan emphasizes that we all reason and think that we know which is the best choice, but when it comes to economics “even the brightest citizens are illiterate.” Therefore, he tries to explain economics stripped from its complex and complicated accessories—he dissects the importance of economics bare naked.

Some of the core principle he explores relate to our lives today. Core principle number one states that people choose. When scarcity limits choices, people decide based on the cost and benefits of the next choice. For example Wheelan reveals that some businesses manipulate consumers into thinking that casinos and the lottery are good because people can get rich fast. Because some people’s minds process faster than their morals, they end up believing that and choose to gamble away their money. Wheelan explores core principle two where all choices involve costs. The opportunity cost of the next best choice is lost when one makes a choice. When one makes a choice to use credit cards, they gave up the option of not getting involved with debt. Not all people who have credit cards will have debt, but people who will not use credit cards will have one less problem to deal with. Smoking and drinking—also known as gradual suicide— can benefit the economy as much as “they kill people who smoke them.” Wheelan explains core principle number three that people respond to incentives in predictable ways. Even though the government place “sin taxes” on alcohols and drugs, addicts still purchase them. Just like physics, economics is evitable to avoid in our lives. When John F. Kennedy decided to put a man on the moon, Kennedy was determined in science to accomplish that goal. Economics is the same way because if we want to invest or improve something, we must lay out a distinctive plan to follow. We must discover what the “good life” is before economics can get us there.

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