Adam Smith should have published his magnum opus as a children's book. Or, more realistically, all macroeconomic and microeconomic professors, in a crisis-precipitated moment of soul-searching, should include some children's literature on their syllabi.
Two of the most venerable names in children's book publishing are Little Golden Books and Richard Scarry. It recently occurred to me in the course of bedtime reading with our boys that two titles in particular do a remarkable job of explaining how the economy works.
The first, I'm a Truck, is the seemingly mundane tail of a long-distance freight truck on its journey from the big city to a port. Along the way the truck, Big Blue Bill, offers his readers a brief overview of how things like produce and milk and new cars and all manner of cargo reach consumers. We have fresh milk because we have trucks like Polar Bear Pierre to distribute it for us. Gustavus Swift would be proud.
But it is the second book I have in mind that truly matches Adam Smith insight for insight into things like the division of labor. This is Richard Scarry's What Do People Do All Day? (A side note: good question Mr. Scarry!) The book is four decades old by now, so some of the scenes are rather dated, yet if you want your child to know (or if you simply wonder yourself) how wealth is created, this books beats the facile fifth column lemonade stand story often used to illustrate the evils of big government.
Farmer Alfalfa, for example, brings his corn crop into town and sells it to the local grocer. With this money, Farmer Alfalfa is able to buy a new tractor and a new suit from the local tailor, who, as a rabbit, has a large family to support. The grocer and tailor, in turn, use their goods and money to make their own profits. And so the cycle of specialization, buying, selling, and wealth creation propagates itself.
Happy reading.
http://en.wikipedia.org/wiki/Rainbow_Fish
scariness
Posted by: eddie | July 02, 2009 at 12:58 PM