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Economic Statistics Guide To Everyday Essay

The direct impact for the mechanic could be that he might have more work in the future. Another example of how the book is useful is given by the need or desire to understand the features of the contemporaneous economic crisis. Despite the fact that the media present apocalyptic stories of today's financial challenges, a reading of Clayton and Giesbrecht's book would reveal that the economy has often been confronted with challenging times and that times of economic boom and recession are normal. Otherwise put, a Guide to Everyday Economic Statistics would help the reader understand the cyclic character of an economy and he would as such be less pessimistic. Listening only to the media coverage of one bankruptcy following another would definitely take a negative toll on the individual. But the book will help him understand that it is natural for this to occur and that, in the future, the economy will pick up and once again register growth.

Still related to the contemporaneous economic crisis is the matter of credit situation. The average American hears all the time that the mortgage market collapsed and that the real estate sector is declining rapidly. They do however fail to explain the causes of this collapse. With the end of the world wars, the United States officials proved unable to support an economic growth based on manufacturing. As a result, they stimulated consumption, which meant that the people bought more and generate profits for the sellers. A reading of Clayton and Giesbrecht's work will however reveal that an economy based on consumption is not a sustainable economic model.

The stimulation of consumption revolved around the implementation of various policies, which led to the...

The corporations became as such dominant powers within the United States. A specific measure which generated the modern economic recession is built on the regulations made relative to credits and interest rates. To further stimulate the purchase of real estate properties and the continuous (and apparently unstoppable) growth of this sector, the banking institutions began selling mortgages to sub-prime solicitants. To make the offer even more appealing, the government decided in favor of the fluctuating interest rate. This interest rate was small in the beginning of the credit contract but grew in time, to place the population in incapacity to pay. A Guide to Everyday Economic Statistics helps the reader understand the mechanisms behind interest rates, so that he can better relate to the situation encountered and it real causes.
Other matters the book would clear up refer to the gross domestic product, in terms of its actual definition, composition, role and significance for a country and its citizens' well-being, or inflation and the mechanisms which determine price (such as demand and offer within the free market, but also the occurrence of monopoly, oligopoly and economies of scale).

All these mechanisms are in fact simple and part of basic economics, but few take the time to explain them to the population without extensive knowledge of economics. Gary Clayton and Martin Giesbrecht took the time to launch such an endeavor, and their efforts materialized in a book worth a place on the shelves of any library.

Gary E. Clyton, Martin Gerhard Giesbrecht a Guide to Everyday Economic Statistics, 6th Edition, McGraw-Hill Irwin, ISBN 0-07-82739-9

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