Thomsett Michael - Simplified Real-World Economics

Copyright 2020 by Michael C. Thomsett

ISBN-13: 978-1-60427-167-6

Printed and bound in the U.S.A. Printed on acid-free paper.

10 9 8 7 6 5 4 3 2 1

For Library of Congress Cataloging-in-Publication Data, please visit the WAV section of the publishers website at www.jrosspub.com/wav.

This publication contains information obtained from authentic and highly regarded sources. Reprinted material is used with permission, and sources are indicated. Reasonable effort has been made to publish reliable data and information, but the author and the publisher cannot assume responsibility for the validity of all materials or for the consequences of their use.

All rights reserved. Neither this publication nor any part thereof may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher.

The copyright owners consent does not extend to copying for general distribution for promotion, for creating new works, or for resale. Specific permission must be obtained from J. Ross Publishing for such purposes.

Direct all inquiries to J. Ross Publishing, Inc., 300 S. Pine Island Rd., Suite 305, Plantation, FL 33324.

Phone: (954) 727-9333

Fax: (561) 892-0700

Web: www.jrosspub.com

If ignorance paid dividends, most Americans could make a fortune out of what they dont know about economics.

Luther Hodges (March 14, 1962)

The Wall Street Journal

A business owner deals with economics every day. Questions about cash flow, customer needs and wants, production, wages, taxesit all comes down to how economics are managed and how economic problems are anticipated and avoided.

In other words, business owners are the ultimate economists of the world. Professional economists offer allegedly sage advice about all things economic. But, have any of them ever run their own business? Have any of them ever had to worry about economic survival, including threats of bankruptcy, business failure, home foreclosure, or meeting payroll? Chances are that few, if any, economists have a footing in the real world of business operations.

As the real economists of the world, business owners pay a role in educating others about how the economy really works. It is not efficiently controlled or influenced by the government, whichlike economics in generalis populated by individuals who, in many cases, have never worked in the private sector or confronted the problems that business owners face every single day. A business owner has a great opportunity to educateemployees, fellow business owners, and family membersabout how things really work.

For example, how many employees ever consider the problems that management faces in meeting this weeks payroll? Or paying for merchandise that is essential to marketing products? Or deciding whether or not to give out raises or bonuses? Chances are that employees have never considered these issues. Why? It is because a large segment of the population is blind to economic reality. This is true in the private sector, government, academia, and even among business owners in some cases. This blindness prevents a realistic understanding of everything concerning the immediate economy (microeconomics) as well as the national and international economy (macroeconomics).

This is the motive for writing this book. Because so many people (perhaps a majority) have never even confronted their own, immediate economic reality, they never have the chance to advance knowledge about how it all works. For most, the economy is like a shiny box that produces electrical current. What is inside the box? How does it work? What happens if it stops working and who will fix it? If the box continues working, these questions simply dont come up; but they should. Knowledge is a powerful tool, and knowledge about the economy is essential to everyone who wants to be in control of their destiny, their financial health, and ultimately, their happiness and security.

This book is divided into three sections. The first section is introductory topics, three chapters exploring the basics and universal truths about economics. The second section is microeconomics, covering a range of topics of interest to business owners and consumers. The third section is macroeconomics, which includes matters pertaining to the entire country and the international community (inflation, employment, taxation, import/export policies). The book is designed to provide information about the economy as well as the underlying principles. The topics in this book are presented without complex and theoretical concepts that are of little interest to the typical business owner. Most business people want to know the bottom line of economics. How does it affect what I do daily? What outside influences help or hurt my operations? How can I anticipate next months economic impact? How can I compete effectively and maintain market share? How will I make cash flow next month?

These are the kinds of real-world questions that business owners ask dailyand these concerns are kept in mind on every page of this book. The purpose: to promote practical thoughts and not theoretical concepts. That is what the business owner needs. Thats what this book is designed to provide.

With a career thats spanned more than 40 years, Michael Thomsett is considered by many as a financial guru or financial expert several times over. Always in high demand, Michael is a frequent speaker at financial-based seminars and conventions throughout the world. He is also a prolific best-selling author, instructor, trainer, coach, and blogger.

Michael is arguably the worlds best-selling author of options investment educational books, having written more than a dozen on the topic, most notably Getting Started in Options, published by John Wiley and Sons, which has sold over 350,000 copies. The rights to this best seller were recently acquired by DeGruyter. A revised edition of the book is now available under the new title of Options: The Essential Guide for Getting Started in Derivatives Trading. Michaels first compilation, Investment and Securities Dictionary, was named Outstanding Academic Book of the Year by Choice Magazine and was also published in paperback as Websters New World Investment and Securities Dictionary. He has taught classes for Moodys Analytics, the New York Institute of Finance, and many others via online platforms. He has also been a guest on numerous financial television programs including NBC, CBS, ABC, CNN, and Fox News.

Early in his career while working as a consultant in the financial services industry, Michael discovered that he had the unique ability to simplify and convey complex topics, with a focus on practical real-world application, in a way that most business people, managers, entrepreneurs, and individual investors including the novice could easily understand. So he began writing articles regularly for dozens of business, trade, and professional magazines as well as for peer-reviewed academic journals. Between 1985 and 1987 alone he had more than 500 published articles to his credit.