Rating: 
Summary: Required reading for every high school graduate.
Review: This book is must reading for anyone who wants to understand the facts regarding the allocation of scare resources that have alternative uses. So often the uninformed ask that if "America is the richest country in the world, why are there so many poor people, children without computers, people without adequate health care, individuals with sub-standard housing etc..?" Well, this book clarifies the conumdrum of wealth and scarcity. College courses generally focus on the "mathematics" of economics without defining the key messages, problems and issues. Dr. Sowell's work provides clarity to a complex subject that few citizens understand. One of the best points made in the book is that differing economic systems (e.g. capitalism vs. communism)tend to deal with the same economic problems. It is only the approach to addressing them that differs. For instance, in a free market system like the US, scarce resources such as waterfront property are allocated through market pricing; in a communist system, like the former Soviet Union, waterfront property is allocated by government decision makers utilizing arbitrary allocation rules. Clearly, Dr. Sowell is a free market economist and doesn't hide it (in this or any of his other writings). Despite his economic/political leanings, he objectively illustrates how scarce resources with alternative uses are allocated in different economies. Liberals will have trouble with this book because the "feel good" approach is supplanted by facts, logic, reasoning and rational analysis. As noted in some of the other reviews, the editing left a lot to be desired (i.e. why I assigned 4 stars instead of 5). Hopefully, Dr. Sowell and/or his representatives will take better care in his next project. Notwithstanding this shortcoming, the messages come through quite lucidly. This book should be required reading for every high school graduate.
Rating: 
Summary: Crazy world
Review: This book is one of the most disingenuous and tendentious books I have read in some time. Coming from the UK I had never heard of Thomas Sowell: having read the book I now see that he is clearly a man with an axe to grind - and boy can he grind. In the crazy world of Thomas Sowell the real world behaves just like the text book world of general equilibrium theory. In this world prices serve only to clear markets (there is no information content); competition is 'perfect', and insofar as monopoly or oligopoly does exist - you guessed it - it's the Government's fault and can best be eliminated by - you guessed it again - the market. In the crazy world of Tommy everyone is rational (we're not - have you heard of behavioural economics Thomas?); everyone has perfect information (we don't, in fact that is the very reason we have brands); and, above all, there are no economic rents - in fact economic rent isn't even mentioned in the index presumably because all rents get competed away in Tommy's perfect market place. Of course, the great thing about economic rent is that it can be appropriated by workers, by Governments - or even by capitalists for that matter - without changing the economic incentives on anyone. Did you get that Tommy? This means that taxation can be re-distributive and that unions can bargain for higher pay, and that capitalists can earn super normal profits without affecting the efficiency of the economy as a whole. So the distribution of income turns out to be a political question as well as an economic question after all. There are many other deliberate distortions in this book too numerous to mention. Don't read it, above all don't buy it - otherwise I fear you will be guilty, like me, of the misallocation of scare resources for which there are alternative uses. Indeed, given that I think the calorific value of this book is higher than the education value, you know what the cast iron laws of economics require me to do with it...
Rating: 
Summary: Superb reading - really opens your eyes.
Review: Easy to read, high-level explanation of a commonly misunderstood subject.
Rating:
Summary: The Best Economics Book Ever Written for the General Public
Review: In 2000, economist Thomas Sowell published Basic Economics: A Citizen's Guide to the Economy, to explain basic economic principles for the general public. His intent was to show certain general principles that apply to any economy, whether capitalist, socialist or feudal, and to encourage readers to look at economic policies and systems in terms of their incentives, constraints and consequences, as opposed to simply their intentions and goals. Dr. Sowell has since produced a revised and expanded edition of Basic Economics to include information from more countries in the world, since basic economic principles are not confined to just one country. As with the first edition, this updated version begins with a simple, yet often misunderstood premise:
"Economics is the study of the use of scarce resources which have alternative uses."
Dr. Sowell uses historical and present-day examples to explain the basic economic principles of supply and demand, the role of prices, free-market competition, investment and risk, the role of business and government, absolute and comparative advantage, present value, and international trade. This revised and expanded edition improves upon the original in enabling the reader to understand basic economic principles by showing what happens in their absence. The former Soviet Union, a region of the world rich in natural resources and, thus, enormous economic potential, serves as a useful case study of the disastrous long-term consequences wrought by a centrally planned (as opposed to a free-market) economy.
This updated version also discusses the economic history of India, examining the crippling consequences of that government's failed economic policies over many decades. Finally realizing the error of its ways, only during the last decade of the twentieth century did India's government finally decide to embrace free markets by instituting sweeping economic reforms, including selling off its state-owned enterprises and removing price controls and international trade restrictions. The same is true for many countries in Latin America.
Speaking of international trade, Dr. Sowell explains why predictions that "a giant sucking sound" would accompany American jobs moving to Mexico in the wake of the North American Free Trade Agreement of 1993 (NAFTA) never came to past. I am not sure what sound goes with an increase in American jobs, including over 100,000 jobs created in the automobile industry over a six-year period, but that is exactly what happened after NAFTA went into effect. As the author points out, this should not have surprised anyone with a basic understanding of economics. International trade is not a zero-sum game; nations trade with each other because both parties expect to benefit.
Distinguishing between incentives and goals is particularly important when examining the political incentives of government officials. Dr. Sowell shows that most politically motivated decisions are not only devoid of even a basic understanding of economics, but can also lead to consequences far worse than either doing something "less popular" or doing nothing at all. Dr. Sowell provides a more in-depth discussion of the distinction between political and economic decision-making in his follow-up book, Applied Economics: Thinking Beyond Stage One.
Along with a more international emphasis, this updated version discusses the economic implications of events that have taken place since publication of the original version. For example, California's rolling blackouts in 2001 should serve as a painful lesson of the dangers of price controls. Arguably the most poignant passage in this book deals with the most important investment that anyone can ever make - though not necessarily in stocks, bonds, gold or mutual funds. Dr. Sowell explains:
"One of the largest investments in many people's lives consists of the time and energy expended over a period of years in raising their children. At one time, the return on that investment included having the children take care of the parents in old age, but today the return on this investment often consists only of the parents' satisfaction in seeing their children's well-being and progress. From the standpoint of society as a whole, each generation that makes this investment in its offspring is repaying the investment that was made by the previous generation in raising those who are parents today."
This book is a must-read for any person desiring to be better informed. As one of the most brilliant public intellectuals of our time, Thomas Sowell is in a class all his own.
Rating:
Summary: Good look at economics
Review: A great way to enhance your understanding of economics. This book uses examples that are easy for the reader to understand. Sowell a great writer and is able to bring the reader through the world of economics.
Rating:
Summary: Changed My Life
Review: I first heard about this book when Dr Sowell was talking on the Rush radio show with his friend Dr Walter Williams. A young man called in to praise and thank Dr Sowell for the Basic Economics book and that it changed his life.
Yeah, right.. I internally guffawed. But the thought was stuck in my head to buy the book. I did. I read it. And I must say, it too changed my life.
Excellent examples. Clear thinking. Real world explanations.
Never mind the other reviews by left-leaning college kids pooh-poohing the book, that "have it all figured out" and hear "alarm bells" when they perceive a "conservative" point of view.
I am 50 years old and this book is real world.
Thanks Dr Sowell !!
Rating:
Summary: Fantasic book. A must read.
Review: I'm always looking for more way to explain economic principles in simple terms. Sowell is a master of that. I have both the first print and the expended version of the book. The expanded adds a lot of examples from other countries, which is good, as economic principles know no borders. It is helpful to show that a problem isn't just a "Democrat" or "Republican" problem, just bad economic theory that doesn't work anywhere in the world.
America would be a much better place if every American read this book...and that isn't hyperbole. Everyone needs to understand basic economics. There isn't a subject that has more fallacies that economics, and Sowell busts many of them in this book.
The chapter on Price theory is profound. People need to understand why prices MUST rise and fall. It is so important that things like oil prices can rise, that plywood prices triple in price in Florida when hurricanes hit, and rents rise in San Diego when 300 homes burned. People invariably whine about how unfair the price increases are, and I have to explain to them why it is so important that the prices are allowed to rise.
This is one of Sowell's important books, and written for a lay person.
The recent shortages of flu vaccines in the US can be traced by to price controlled placed by the Clinton Vaccine buying program from 1993. Only 4 companies are left out of over 20 that used to make vaccines. Sure, government can promise free vaccines for kids, but who will provide the vaccines when it costs the companies $600 to produce vaccines for a single kid, but the government caps prices at $400 and buys half of the countries supplies? Everyone else pays $800 per kid, and the government blames the drug companies for high prices.
Once you've read this book, you'll have a much better undertanding of the world around you.
Rating:
Summary: A Must Read
Review: With the possible exception of "Economics in One Lesson," probably the best book on economics for the layman. It should be the duty of every citizen to read this book. It cuts through all the misinformation about the economy put out by politicians, the media and Hollywood.
Rating:
Summary: Another Winner
Review: Prof Sowell has become one of my favorite authors. This book is another example of his clear presentation of Economic ideas applied to public policy.
He provides plenty of examples of how Economic principles affect our daily lives in both expected and unexpected ways.
My only critisism is that he sometimes repeats the same example in too much detail, too close to its last use. It makes some sections of the book feel like they were pieced together from many articles. This did not happen often and overall it detracts only slightly from the flow. It was enough to lose one star though.
Rating:
Summary: Minimum Wage vs. Unemployment
Review: The most important thing I learned from this book is that the free market (supply and demand) results in the best distribution of resources. Once you start putting external controls, i.e. government regulation, on the system, you wind up screwing up the resource distribution. Dr. Sowell gives the example of the USSR's central planning scheme that wound up wasting billions of dollars worth of raw materials and finished products, just because they were not distributed where they were most needed.
Another important point is the argument against price floors and price ceilings typically imposed by government. When you impose a price ceiling, more people will be looking for the product, knowing the seller cannot charge more than the government-imposed maximum. The producer, meanwhile, knows he cannot make any money if the price of materials goes up, so he cuts back production. The result is a shortage.
The minimum wage is a price floor. The opposite effect occurs. People are a resource, but the government says you can't buy them for less than a certain price. That means fewer "buyers" (employers) and an oversupply of "product" (entry-level employees). The result is higher unemployment.
Ronald Reagan said it best: "Government isn't the solution to the problem -- government IS the problem." Why is it that the Russians now have a clue, and we Americans allow the neverminds in Congress to confiscate our earnings and regulate us into oblivion? It's no wonder companies are going overseas and taking the jobs with them.
Of course, the little guy keeps paying the price, having bought into the argument that corporations are evil and your buddies in Washington DC are looking out for you. Unfortunately, most folks of that persuasion would rather watch the tube than read a book, convinced that they're too stupid to understand economics. At least their union leaders know what's going on and can point them in the right direction on election day...
|
