Understanding economics

[Paradox]

I'm currently reading a book on living wages as part of a research paper for my government class. It's been a while several months since I read up on economics. Most of the books I have on economics are by Marx. I know Ricardo and Smith are important, and that Marx uses their works a lot, so reading Marx helps give some insight to their work, but I would like to hear other reading suggestions as well. Books pertaining to the recent development and conflicts in economics would be appreciated. For example, anything on the minimum wage issue, it's history and development, as well as the living wage issue tied into it. Books that help better understand economic processes, markets, inflation, etc., as well as books on workers' struggle, of course. Also, any indepth links would be much appreciated. I haven't spent nearly enough time reading up on economics lately, so I'm trying to get back into it as much as I can manage. Thanks in advance.

[Son of a Strummer]

I would highly recommend the work of Robert Pollin concerning living wage reforms.

A book co-authored with Stephanie Lucie: http://www.thenewpress.com/index.php?optio...aproductid=1142 (http://www.thenewpress.com/index.php?option=com_title&task=view_title&metaproductid=1142)

The Economic Policy Institute has a pretty comprehensive page of web references:

http://www.epinet.org/content.cfm/issuegui...wage_livingwage (http://www.epinet.org/content.cfm/issueguides_livingwage_livingwage)

For a more wide-ranging update on radical political economy that includes discussion of living wage campaigns I would look no further than Robin Hahnel's "Economic Justice and Democracy."

a short excerpt from it highlighting a particular conflict in economics....

"Opponents invariably argue that minimum wage laws, and any increase in the minimum wage, hurt the people they are supposed to help by increasing unemployment. Unless the demand for labor is infinitely inelastic raising wages does decrease employment to some extent as simple supply and demand analysis reveals. What opponents of initiatives that raise wages do not want to admit is: (1) The demand for labor is often wage-inelastic in the short run. (2) Even in the short run raising the wage rate, unlike raisng other prices, can be expected to shift the demand curve for labor to the right as well as move up the demand curve for labor. Because workers spend a higher percentage of their income than employers, increases in wages increase the aggregate demand for goods and services in the short run, which will make employers more likely to hire workers because they will have less trouble selling the goods those workers make. While moving up a given labor-demand curve reduces employment, shifting the labor-demand curve out- as wage increases do- increases employment. That is also simple supply-and-demand analysis, just not the kind opponents of minimum wages want to engage in. (3) Contrary to the teachings of mainstream economics, in the long run an infinite number of combinations of wage rates and profit rates are technically possible in any capitalist economy. The only difference between combinations where the wage rate is high and the profit rate low, and combinations where the profit rate is high and the wage rate is low, is that the former are more equitable and the latter less so! In other words, in the long run expansionary macroeconomic policies can be used to preserve full employment after minimum wage increases." (Hahnel, Economic Justice and Democracy, 278)

[ComradeRed]

Here are some books and authors that I might recommend to someone who is a complete beginner (a "noob", if you will) to economics.

Sraffa

I don't know how popular a character he is, but Piero Sraffa is essentially an extension of Ricardo (as a matter off fact, his school of thought is sometimes referred to as the Neo-Ricardians). He is very mathematically intensive though (if you thought I was bad, try some of his stuff...he doesn't even explain it such that it can be used, rather he gives mathematical proofs!).

He covers a great deal of stuff in his slim (yet comprehensive) book The Production of Commodities by Means of Commodities. The book's out of print, so you'd have to request it from the library (most university libraries have it, if you want (I'm *not* advocating it) you could photocopy the entire thing).

He covers a great deal that Marx did not, and gives a formula for reducing commodities' inputs to their dated labor quantities (consistent with Marx's thoughts in Das Kapital, vol. I). It's a "must-read" for anyone serious about economics, it not only formalizes Ricardo but it also criticizes marginalism beyond repair.

Keen

Steve Keen has a number of good technical papers on his website (which I don't know at the moment). He is trying to use nonlinear dynamics in Sraffa's system, and has some very interesting papers.

He has also criticized Neoclassical (bourgeois) economics in his book Debunking Economics which is presented for the layperson (though admitedly, it is a little technical ;)). It's a "must-read" for critics of bourgeois economics.

Evolutionary Economics

Often associated with the Austrian school, Mr. Schumpeter is a very interesting fellow in his own right. He focused on the evolutionary aspect of economies, though because the math wasn't available to him his models were incorrect.

A worthy read in his own right, if for nothing else than to see his models. If one were to attempt to do the same thing today, one would need a complex dynamical systems model (and that's a real pain in the ass to learn). Again, reading History of Economic Analysis (Schumpeter's good book) is a worthwhile side note.

But if you are interested in evolution applied to economics, you may want to look at The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics by Eric D. Beinhocker. I myself have not yet finished it, so I do not know if he is a vulgar economist yet or not. He presents a good history of economic thought from the Classical to Neoclassical transition to the present.

[Dewolfemann]

As far as free stuff not mentioned so far:

Wage Labour and Capital (http://www.marxists.org/archive/marx/works/1847/wage-labour/index.htm)
Activist's Guide to Economics (http://www.activistsguide.com/activistsguide%20Read%20and%20Share.pdf)
Minimum Wage Research in Canadian Context (http://www.canadiansocialresearch.net/minwage.htm)