Basic Economics

Somehow or another, Thomas Sowell only recently came across my radar. And since, I've listened to countless of his speeches, talks, and interviews on YouTube. I decided to purchase this 5th ed. of Basic Economics and I have not been disappointed. He writes in a very readable and compelling style so that his presentation of economics is very interesting and applicable. I am learning many things about how the economy works. For instance, living in Florida under the annual danger of hurricanes where the Governor can step in to prevent "price gouging," I was particularly interested in Sowell's explanation of the benefits of "price gouging" in that it creates an incentive for sellers to rush "to the area where the hurricane is likely to strike, before the hurricane actually gets there" in order to make additional profit. While this seems heartless, it benefits the economy because much needed supplies are provided and sellers get to make a little extra money doing it. Insert "price gouging" controls and these additional resources never arrive. Remove these controls and, as Sowell says, "Skyrocketing local prices can overcome the reluctance to take on these local obstacles that entail additional costs. Moreover, each supplier has incentives to try to be the first to arrive on the scene, since that is when prices will be highest, before additional suppliers arrive and their competition drives prices back down." Sowell goes on to say "But if only the usual prices in normal times can be expected, there is less incentive to incur the extra costs of rushing things to an area where disaster is expected to strike." What Sowell admits, is that everyone is greedy - the buyer and seller alike - so go ahead and keep the scales of greed balanced rather than over-balance it to one side or the other because "people tend to do more for their own benefit than for the benefit of others." When price controls like this are in effect - tipping the scales of greed in the favor of the buyer - people are more likely to buy much more than they may need leaving very few supplies for others while sellers are disincentivized from supplying more because there is no reward in it for them. But if the market were permitted to set its own prices, it would force us greedy buyers to ration how much we buy thus leaving resources for others to buy, forcing everyone to ration on their own. This was an argument I'd never heard of before and would love see any data on how it has played out anywhere, assuming it has been permitted to.I'm still plowing through the book though I've read several chapters but not in order. I certainly recommend this book because it demonstrates effective critical thinking to how economies work.

Sowell is one of my heroes, so I am heavily biased towards his point of view, so I’ll be brief.This is one of the greatest works in economics- as he says “basic economics” that I’ve ever read. If you want to get a general grasp on local , national and global economics this is the book for you. It not only explains the basics but it exposes common lies and talking points that we often hear in the mainstream.I took 3 courses in economics in college and a few hours with this book was far more educational (and at considerably lesser cost) than my courses were.It’s not a quick read and it’s not super-easy, it will require some thought on the reader’s part, but there are very few formulas or graphs that economists usually hide their false conclusions in.For parents of teenagers (my son was 18 when I had him read it) I would definitely recommend the book. But even for old folks like myself, it was a great read.My edition was hardcover, arrived quickly and in good condition. Amazon packed it perfectly.

"Opinions un-backed by facts are useless at their best and dangerous at their worst." That is my own quote, but one inspired by Sowell's Basic Economics. I recommend this work for 1. beginning econ majors 2. laypersons who want to understand "basic economics" for their own personal reasons 3. philosophy majors/autodidacts who want to know A WAY of thinking, that is, the interface between factual knowing and formulating opinions. It doesn't matter whether you are a socialist, laissez-faire economist, green consumer, ascetic monk, anarchist, business tycoon, or a compulsive shopper-ideologically speaking- this book will teach you HOW TO understand economics. Sowell writes in a way that is easily comprehended, providing real world historical and present day examples to illustrate the concepts. He covers every area of economics that effect day to day lives. It does NOT matter what your personal agenda or views are, this book will teach you how to think non-propagandistically, factually, and with clarity on all things, events, and trends "economic."