COST ECONOMICS: Reconstructing Economics from the Perspective of Cost Structures: An Efficiency Revolution Centered on Consumer Welfare (Market Civilization Series)

Cost Economics is a theoretical work that places “cost structure” at the center of economic analysis and systematically reexamines the fundamental deviation of modern economic systems and contemporary economic thought. The book argues that the essence of economics is not expansion of scale nor numerical growth, but the efficient allocation of scarce resources at the lowest possible comprehensive social cost. True efficiency should not be measured by nominal income or aggregate output, but by the actual burden borne by consumers and the overall affordability of living.The author contends that modern economies and economic theory have gradually shifted toward a producer-centered narrative. Profit maximization is treated as the ultimate objective, rising wages are automatically equated with progress, and expanding government expenditure is widely interpreted as development. Yet these metrics overlook a fundamental reality: all institutional arrangements ultimately translate into costs through the price mechanism, and those costs are borne by consumers. High taxes, high tariffs, expansive welfare systems, heavy regulation, and excessive administrative spending are all embedded into the pricing structure of goods and services. They elevate the overall cost base of society and weaken national competitiveness.This book establishes four core theoretical pillars: the Principle of Cost Transmission, the Principle of Labor Structure, the Competitiveness Cost Principle, and the Principle of Affordability. Together, they form a clear logical chain: institutional design determines cost structures; cost structures shape price systems; price systems determine consumer welfare; and consumer welfare ultimately defines social stability and national competitiveness. Genuine economic prosperity is not high profits under high prices, but high affordability under a low-cost structure.Cost Economics calls for a fundamental reconstruction of the object of economic study. It shifts the analytical focus from producers to consumers, and replaces growth rates with affordability indices as the primary standard of evaluation. It advocates for an economic system characterized by low institutional friction, reduced structural costs, and high efficiency—one in which resources are allocated according to efficiency principles, living costs steadily decline, and the real purchasing power of the middle class continues to rise.More than a theoretical contribution, this book presents a framework for institutional reform. It seeks to answer a central question: how can a nation reshape its cost structure to build an economy that is efficient, affordable, and globally competitive?Also by the author:What Europe Did Wrong?, The Fallacy of Tariffs, Newsom's Fallacy, The Law of Wealth, and Voting with Feet, Double Taxation, Major Strategic Mistakes by the United States and Europe, Killing Enterprises, The Scourge of the Leftists, A New Vision for the US-Mexico-Canada Free Trade Area, and Texas: America's Future. Read more