Basic Economics: A Citizen's Guide to the Economy [Hardcover]

Thomas Sowell (Author)

Book Description

Publication Date: December 26, 2000

At last there is a citizen's guide to the economy, written by an economist who uses plain English. No jargon, no graphs, no equations. Yet this is a comprehensive survey, covering everything from rent control and the rise and fall of businesses to the international balance of payments.The purpose of Basic Economics is to enable people without any economic training to understand the way the economy functions-not only the American economy, but other economies around the world.Some of the clearest demonstrations of the role of prices, for example, come from economies in which prices are not allowed to function-with consequences which show just what those functions are and what happens when they are lacking.In the end, this is not a book from which to cram facts, but one from which to gain an understanding of the economy that will enable you to form your own conclusions on the basis of tested principles, rather than on the basis of emotion or rhetoric. That is the goal of the journey, but you should also enjoy the trip along the way.

Editorial Reviews

From Publishers Weekly

A well-known conservative columnist, author and economist, Sowell (A Personal Odyssey, etc.) presents an introductory course in economics with an emphasis on public policy. Forgoing jargon, equations, graphs and complicated exposition, he's produced a book that's easy to read and understand, though it tends to be superficial and is written in an angry tone, often accusing others of economic ignorance, as if that is the only possible explanation for disagreement with the author's views. Sowell is at his best discussing microeconomics in the first two-thirds of the book. Unlike most accounts, which cover the subject from the point of view of business or investment, Sowell concentrates on government action, in an effort to prepare the reader for civic participation. He addresses price controls and subsidies in detail, both as important political issues in their own right and to demonstrate how prices work by showing what happens when they are constrained. In the final third of the book, he wades into more complex and controversial territory--macroeconomics, international economics and popular fallacies--and his effort to cover them at the elementary level results in a muddled treatment. Overall, his defense of certain conservative tenets is wielded with a sledgehammer rather than a rapier. Agent, Carol Mann. (Feb. 15)Forecast: Sowell's many fans will appreciate this book (which is supported by a radio satellite tour), though it is probably most appropriate as a gift to junior high school relatives, accompanied by a bribe to read it. General readers can--and some of them will--find better written, more sophisticated introductions to economics, including such middle-of-the-road overviews as From Here to Economy: A Short Cut to Economic Literacy by Todd G. Buchholz or New Ideas from Dead Economists: An Introduction to Modern Economic Thought by Todd G. Buchholz and Martin Feldstein. For a conservative viewpoint, Capitalism and Freedom by Milton Friedman has yet to be topped.

Copyright 2001 Cahners Business Information, Inc.

From Library Journal

Syndicated columnist Sowell (economics, Hoover Inst.) is the author of 31 books and monographs on a broad range of topics, including race, culture, education, social policy, philosophy, and economics. In this groundbreaking work, he explains the basics of economics without resorting to the graphs, equations, and jargon that typically fill the textbooks and literature in the field. Along the way, he explains exactly what economics is and what its guiding principles are. Sowell covers a broad range of topics, from scarcity, the balance of trade, and price controls to minimum-wage laws, competition, profits and losses, and the role of government. Intended as a primer for the citizen not trained in the basics of economic theory, this book is flawed only in a somewhat confusing organization that leads to repetition. Recommended for public libraries. Norm Hutcherson, California State Univ., Bakersfield
Copyright 2001 Reed Business Information, Inc.

See all Editorial Reviews

Product Details

• Reading level: Ages 16 and up
  
• Hardcover: 432 pages
• Publisher: Basic Books; First edition (December 26, 2000)
• Language: English
• ISBN-10: 046508138X
• ISBN-13: 978-0465081387
• Product Dimensions: 9.4 x 6.4 x 1.4 inches
• Shipping Weight: 1.4 pounds
• Average Customer Review: 4.5 out of 5 stars  See all reviews (140 customer reviews)
• Amazon Best Sellers Rank: #394,632 in Books (See Top 100 in Books)

More About the Author

Thomas Sowell has taught economics at Cornell, UCLA, Amherst and other academic institutions, and his Basic Economics has been translated into six languages. He is currently a scholar in residence at the Hoover Institution, Stanford University. He has published in both academic journals in such popular media as the Wall Street Journal, Forbes magazine and Fortune, and writes a syndicated column that appears in newspapers across the country.

Customer Reviews

Most Helpful Customer Reviews

110 of 115 people found the following review helpful:

5.0 out of 5 stars Antidote to economic illiteracy, January 24, 2001

By 

Barry Milliken (New York, NY USA) - See all my reviews
(REAL NAME)   

This review is from: Basic Economics: A Citizen's Guide to the Economy (Hardcover)

Economic illiteracy (and its political results) may be the single largest cause of avoidable human misery worldwide. Even in the US, (the most advanced market ecomony in the world), it is painful to listen to the daily pronouncements of most politicians and commentators on the subject.

Sowell provides a good complilation of what any educated citizen needs to know. As he admits, there is little in this book that hasn't been understood by at least some economists for decades (and sometimes centuries). But he spices the presentation with many recent examples of political folly.

90 of 96 people found the following review helpful:

5.0 out of 5 stars Sublime in its simplicity, June 4, 2001

By 

Scott Widener (Richmond, VA USA) - See all my reviews

This review is from: Basic Economics: A Citizen's Guide to the Economy (Hardcover)

The author presents a solid synopsis and analysis of economic data that span most of Humanity's history. He uses these data to clearly explain complex economic phenomena as an application of simple, seemingly immutable, economic rules. The consequences of failure to account for these rules by policy makers over both time and distance are well described.

The primary review of this book is objectionable. The reviewer erroneously applies the label "conservative" to Dr. Sowell, lamenting the author's expressed point of view. Dr. Sowell writes the book as an economist, not an ideologue, and the book is simply an economic treatment of evidence, devoid of any political bend. What should be clear to the reviewer is that economics is not a belief system, but rather the study of the allocation of scare resources. A study-of employs scientific method and standard statistical techniques to test hypotheses and to draw inferences. This process, done correctly, must be free from ideology. Therefore, while a liberal might very well continue to support rent control as a policy, he does so in lieu of the demonstrated consequences of such policy. One can disagree with a political or philosophical stance; one cannot "disagree" with accumulated evidence.

There are some annoying typographical errors that should have been culled during editing. However, it is a great work overall. I endorse the sentiment that this book should be required reading for anybody that votes, anybody that holds office, and for anybody that has not given substantial thought or study to the subject of economics, yet considers himself educated.

56 of 58 people found the following review helpful:

5.0 out of 5 stars I wish, February 6, 2001

By A Customer

This review is from: Basic Economics: A Citizen's Guide to the Economy (Hardcover)

I wish there were some way to get this book into the hands of every household in America. Someone with the means should fund that project.

The amazing thing is that what Sowell says throughout this book should need saying. Much of what he says is patently self-evident to anyone not blinded by idelogical prejudices. We should not have to continue repeating the mistakes of the past (and present).

Sowell, in his own inimitable style, discusses clearly and concisely all of the basic issues involved in economics. Probably the most important thing he says repeatedly is that economic plans should NOT be evaluateed on the basis of their purported goals. Instead, they should be evaluated on the basis of the incentives they will create. It is a failure to take into account these incentives that explain why so many good intentions have resulted in complete and utter failure. Incentives, not intentions, are what count.

If you want to know why the common analyses of the ecomomy and the common suggestions for improvement that are promoted by politicians, pundits, and professional news anchors are misguided and counter-productive, read this book.