One problem is that not everyone is equally talented or able. The answer poor. We can offer rewards to those who have skills and are productive. We can transfer wealth to the poor, but then we discourage productivity. Our choice in the United States some combination.
Education can work to maximize the earnings potential of all people.
Your book ends Chapter 2 with a section on The Case for a Market Economy. We ll spend lots of time talking about how this works, but I want to point out now that it appears very coordinated in many ways everything you want is at the store, isn t it. As I said, more later. Maybe a hut, and some food, and a few items of clothing. An economist will tell you it is due to what we call division of labor and specialization.