Book Review: The Invisible Heart

Capitalism involves struggle, but it has an invisible heart beating at its core that transforms people's lives. If you give it the chance. Look at the full picture and you get a very different perspective. ~ The Invisible Heart, by Russell Roberts

Do homeless people have the right to use the money given to them to buy drugs? Do CEOs fire people for kicks? Why are more and more businesses moving their production out of the United States and into foreign countries? Is it ethical to pay foreign workers far less than a US worker would demand? Is the minimum wage law really helping the working man?

In Russell Roberts' The Invisible Heart: An Economic Romance, all of these questions and  much more are addressed in a discussion format between the characters of two young people who both have a passion for what they do and what they believe.  Roberts packs the facts of an economic textbook into a well-written novel. Of the two central characters, Laura would not call herself a socialist per se -- just as many in our society wouldn't out and out call themselves socialists, and truly do not think they are. But Sam has no scruples about calling himself a capitalist, and the discussions he and Laura share are incredible to explain the entire economic process to the reader.

The Free Pearl Market in Action

Recently, The New York Times posted an article of how a businessman in China is able to create beautiful pearls at lower costs using what The Times called "new techniques." It's amazing to see just how industrialization and the development of capital is so vital to a growing economy. Women who are even in the poorest brackets of society have the chance to own beautiful pearls. Before long, pearl necklaces will no longer be a luxury, but a style as common as blue jeans. Surely the consumer benefits, whether it is a woman who can afford to own a beautiful pearl necklace or a husband happy that he can get his wife a gift. Of course (and The Times does talk about this), what happens to the workers in the pearl factory?

The Times notes that "wages [have] surge[d], particularly for blue-collar workers" due to the lack of supply of workers, who prefer to attend universities rather than toil decades in a dirty cog. It is true that a supply decrease does tend to increase wages, but what about the increased industrialization? Long story short, industrialization leads to an increase in capital, which raises living standards. As a result, prices are supposed to fall as wages rise (prices can rise due to inflation, but they will grow at a slower pace than real wage rates).

The Commercial Heritage and Contribution of Islam

I found this interesting lecture from the Mises Institute discussing some of the capitalist elements of Islam and the Muslim world. Although I don't 100% agree with what the speaker Mustafa Akyol says, this video is still informative and educational.

America Says: Read Ayn Rand

Well...sort of:

A man -- Nick Newcomen -- drew this by driving across thirty states with a GPS device. Yes, that's right, by driving across thirty states. Now that's a Randian if I ever saw one. Perhaps Canada ought to read "Who is John Galt?" next.

Kudos to wired.