What is the difference between bonds and shares? Why do almost all governments run deficits? What are the problems with the welfare state, awesome as it may sound? Why does a currency drop in value when its government prints more money?

“Ha!” you exclaim. “These are the most basic economic concepts, you idiot!”

Well… You know what? That’s true. But for the uninitiated like me (haha, ha … ha), 50 Economics Ideas You Really Need to Know by Ed Conway is a great starting point for greater understanding in the world of economics and finance. Furthermore, for those of us steeped in fiction, this book may just be the non-fictional yet informative breath of fresh air that we need.

Book review #3: 50 Economics Ideas You Really Need to Know by Ed Conway, and why fiction readers should read non-fiction as well

Layout of the book:

The book explains 50 core economic (and finance) concepts, from (to quote the blurb because it’s already concisely written) Adam Smith’s invisible hand to supply and demand, stocks and shares to communism. These concepts are subsumed under five major categories, including “The basics” (e.g. supply & demands), “The movements” (capitalism vs communism), “How economies work” (central bank and interest rates), “Finance and markets” (Stocks and shares), “The issues” (Protectionism), and “Alternative economics” (Environmental economics).

How is each concept explained?

Each chapter starts with a relevant anecdote, which, to Ed Conway’s credit, does wonders for reducing the crippling dullness of the subject matter. Then it segues into the definition, examples, benefits and drawbacks, etc., with specific sections placed under their emboldened headings that improve readability.

One thing I like about this book is its holistic outlook. Ed Conway always makes sure to look two ways in any concept. In fact, he even includes a section on the “benefits” of wealth inequality. Also, despite the supreme erudition often attributed to economists, 50 Economics Ideas You Really Need to Know is written in accessible language, and every now and again, you may stumble across a joke. A joke? In an economics book? Yes! The easy-to-read style really eased me into the subject.

That said, I have a particular problem with “the condensed idea” – the one-sentenced long summary at the end of each chapter. To me at least, it felt as if the editor had forced Ed Conway to slap in 50 tiny summaries on short notice. Despite its name, the condensed idea hardly ever captures the core concept at all. For instance, in chapter 26, Energy and oil, after writing at length on the importance of oil in the modern age, its epically turbulent political history, price volatility, and increasing demands for alternative energy, the author summarize in the condensed idea with 6 words: “Deal with oil shortages through innovation.” At that, I couldn’t help throwing up my hands. If a concept is complex, and, to be fair, the chapters themselves are not by any measure long, then why make a summary at all? I’ve read many other non-fiction books that’s formatted similarly, and most don’t attempt to provide such half-hearted summaries.  

Having said that, 50 Economics Ideas You Really Need to Know is overall a great entry point to economics in particular, and non-fiction more broadly. 

Why should you read non-fiction books, like 50 Economics Ideas You Really Need to Know, alongside fiction?

As mentioned in the introduction, reading non-fiction, especially when squeezed between episodes of consuming fiction titles, can be much-needed fresh-air. Not only is non-fiction informative and can potentially help us advance academically and professionally, it can make our fictional world more real. There’s a great saying I’ll never forget: “All fiction needs to be more real than the real world to be believable.”

After all, you don’t want your protagonist businessman to “trade in government shares.” Unless he is a politician, of course.