Author David Bahnsen chatted with Digital Journal’s Markos Papadatos about his new book “There’s No Free Lunch: 250 Economic Truths.”
Bahnsen can be seen on television news shows on a weekly basis leading the discussion on wealth management, stocks, and the economy. In his new bestselling book, “There’s No Free Lunch,” Bahnsen expertly discusses 250 economic points that are crucial for our times. He contends that the best way to defend the cause of human flourishing against a current onslaught of dangerous economic thinking is to relearn time-tested economic truths.
“There’s No Free Lunch: 250 Economic Truths” highlights the greatest voices in economics, reminding readers of the basic economic truths that must serve as our foundation in understanding the challenges of today. In easy-to-understand language, Bahnsen highlights these vital points with his own commentary explaining economics in the context needed for our confusing and unpredictable times.
Economics can be complicated, but Bahnsen’s explanations of the basic truths of economics will no doubt greatly benefit and teach readers all that they need. It’s a remarkable book and David is a vital voice in the field.
David Bahnsen sat down with Digital Journal’s Markos Papadatos to discuss the points in his book and more details about economics in the U.S.
What is your book about?
It is a reminder that economics is about the human person, mankind’s propensity to act, and how prosperity comes to society. It is intended to be a refresher of the most basic yet vital economic principles that provide us with an unmistakable roadmap for the ideal economic conditions.
Is the book intended to persuade someone of something?
There is nothing I would love more than for those who favor a “command-control” view of economics – one heavily managed, planned, and centralized – to read the book and become convinced of the futility of such notions.
Primarily, the book is actually intended to speak to the audience of people most intuitively in favor of free markets already, who simply need to fortify their own reasoning and their own arguments. It is intended to affirm (or re-affirm) foundational believes that are time-tested and indispensable in our pursuit of a free and virtuous society.
Why did you choose to write it using quotes from famous economists?
Because I do not believe there is a need for “new” teachings on the great challenges of our day – I think we have wisdom and insights from economic sages that go back hundreds of years. What I want is to refresh in the minds and hearts of readers the principles that make for the ideal economic structure. We have no need to reinvent the wheel – we just need to be reminded of the wisdom of men and women who stood before us, and apply it to the issues of our day.
Do the principles of free market economics need to be updated for the realities of today’s inequalities?
The principles do not need updating but the application certainly does! This is a great theme of the book – that many of the issues we fight through today have already been litigated, and it is the collectivist and socialist trying to live in the past, not the champion of freedom and growth.
A vigilant focus on the cause of human flourishing will do wonders for the plight of the unfortunate, and never seek to solve for inequality by deteriorating growth.
What are items we can learn from your book for the current US import price surge?
My book heavily promotes the reality that economic growth comes from the production side of the economy. We must produce before we can consumer – this is as basic an economic law as has ever been. Wealth creation comes from producing more than we consume.
Our challenge with import prices right now is that our production side of the economy is deficient. We have under-invested in needed productivity and it is catching up to us, in concert with the demand surge we are experiencing post-COVID. The book’s philosophical argument is directly correlated to the economic argument of the moment – that we solve for high prices with needed savings, followed by investment, followed by productivity.
Are we in a recession? What should Americans do to weather the inflation storm?
Absolutely not. In fact, one of the inflationary arguments is that the economy is too hot – the polar opposite of a recession or contraction. The comeback from the COVID lockdowns has been something to behold, and so while the economy is seeing high demand for goods and services (a good thing), we are having a hard time supplying that demand (a bad thing).
The result is higher prices and various inefficiencies in supplier shipments. The best solution to this upward price pressure is to fix the supply problems causing it.
The GOP shows inflation hurts low-income Americans the most. How can those affected Americans brace for this hardship?
Inflation always hurts those at lower-income levels the most because the impact of either price represents a higher proportion of their income. Each individual and family has to spend within their means, be a discerning consumer, make prudent decisions about what to buy and not buy, and ultimately, pursue wages that also climb with these upward price pressures.
What do you think is the most important topic we should be talking about in regard to international trade?
The most important aspect of international trade is the total volume of trade. I want to see a high Exports + Imports, not necessarily a high Exports – Imports. So even though the U.S. may be importing more than we export, if both are going higher, it means we have more activity for goods and services and therefore a better quality of life permeating in the economy. Free exchange is vital to economic growth.
If you could have five minutes with President Biden, what would you like to tell him?
I would respectfully tell him that the country desires normalcy, sanity, freedom, and civility. I would ask him to recognize that “new deal” expansion of the size of the federal government right now is both unaffordable, but unneeded and ill-advised.
“There’s No Free Lunch: 250 Economic Truths” by David Bahnsen is available on Amazon by clicking here.
