An overview on the ‘Anatomy of Economic Sanctions’ Essay

Chapter 1 The power of the markets is a very interesting chapter. Wheelan uses the German coca cola campaign as an example of a market strategy. If everyone was to appeal to their own interest standard of living would be up. Wheelan is able to justify identify the standard of living is directly connected to the people. The long term cost vs the short term cost comes into play. Economics starts with one very important assumption individuals act to make themselves as well off as possible. To use the jargon of the profession individuals seek to maximize their own utility, which is similar concept to happiness, only broader (Wheelan, 6). When reading chapter one the deduction made was the market is heavily tied to the people. But economic make the prediction mistake which leads to financial crisis.

Chapters 2, 3 & 4 Chapter 2 Incentive Matter builds upon the economic phycology. A few examples made by Wheelan is about commission and gasoline. Basically people tend to work harder if their paid off of commission. Also, people will drive less if gasoline is too expensive. Wheelan addresses that policies that are good will include incentive for a positive end. People love competition, inwardly competition can easily encompass growth and innovation. Chapter 3 Government and the economy  When an externalitythe gap between the private cost and the social cost of some behavioris large, individuals have an incentive to do things that make them better off at the expense of others. The market left alone, will do nothing to fix this problem (Wheelan, 55). There are many externalities that are impactful to economy. Such as fast foods and health care costs. Wheelan discusses the impact of positive externalities which can come from business that is able to revitalize neighborhoods. Wheelan ends this chapter talking about the government taking money out of our checks which means there are things I can never buy, but I cannot build a missile defense system, or protect endangered species, or stop global warming, or install traffic lights, or regulate the New York Stock Exchange, or negotiate lower trade barriers with china. Government enables us to work collectively to do those things (Wheelan, 79). Chapter 4 The Government and the Economy II carries on the premise from Chapter 3. Basically the just of Chapter four is the government control over goods and services and lead to economic ruin. Because if the government controls industries such as coal mines, banks, and steel mills it will take away the element of competition. Which deconstructs the incentive in the business. Wheelan also uses this chapter to talk about taxation and the usage of taxation can discourage investments, and productive behavior. After Chapter 4 Wheelan gets more technical with terms and sanctions of the economy. To address his main thesis of the book Wheelans uses concepts of economics and simplifies is for any everyday person so that they can better understand the economy and how it can either increase or fail.