Georgian Economic Literacy Initiative (GELi)

Common sense economics

“Common Sense Economics - What Everyone Should Know About Personal and National Prosperity” is an easily written book on economics that minimizes the number of formulas, complex terms, and details. The authors of the book are internationally recognized economists: James D. Gwartney, Richard L. Stroup, Dwight R. Lee, Tawni H. Ferrarini, Joseph P. Calhoun, Randall K. Filer.

The book was first published in 2005 in the United States. Its third edition was translated into Georgian, Armenian, Ukrainian, Russian, Albanian, and Uzbek by the Economic Fundamentals Initiative, and the process continues. The founders of GELi actively participated in the Georgian translation of the book.

The materials included in Common Sense Economics, with additional reading topics and more than 9 hours of subtitle video clips, enable the reader to better understand the fundamental principles of economics and consequently make sensible personal and public decisions.

The book will be of interest to high school students, university students of any faculty, and any citizen.

Book structure

Common sense economics consists of four parts:

Part 1 - Twelve Key Elements of Economics

The most important concepts for understanding economics. Among other topics, the reader will learn here that: there is nothing free because of the opportunity cost; The marginal benefits must exceed the marginal costs; Trade increases prosperity; We need to consider not only short-term results, but also long-term and secondary effects (externalities).

Part 2 - Seven Major Sources of Economic Progress

Vital issues such as why do some countries grow and achieve high levels of income while others stagnate? What institutions and political approaches contribute to economic growth and higher living standards?

Part 3 - Ten Key Elements of Economic Thinking About the Role of Government

The role of government in the economy. Why does the government use taxes and borrowing to provide some individuals and businesses with subsidies and other forms of favouritism? What is a set of constitutional rules that might improve the operation of government and its potential to enhance the quality of lives?

Part 4 - Twelve Key Elements of Practical Personal Finance

Important principles that are at the core of family financial planning. The focus here is on issues centred on how you can earn more, how to get more value from your income, how to make more return on investment, and on management of risk.