Economics from a free market fundamentalist. Easier and less boring to read than Mankiw or other "Econ101" texts that I've perused, but boy if you're new to economics like I am, make sure you realise that you're reading a very particular libertarian form of econ'

If everyone read this book, the Democratic Party would be out of business, and for good reason. There are certain economic laws; there is economic history; there are economic limits., Liberals ignore this and proceed on good supposedly good intentions. Reality be damned.

Great intro to basic economics. Thomas gave tons of examples as he weaved through the big topics in economics. I'm sure there are other more detailed books but this gives you a starting point on how to think.

Thomas Sowell is a genius. I knew that going into this book, but now I'm completely convinced. In the spirit of refusing to be passively educated by pop culture and the media, I have decided to educate myself on hot topics by reading material from authorities on the subject. Thomas Sowell and this book fit into that profile (and, yes, I am that much of a geek that I'm exclaiming over an economics book!).

Please note that, although this is not written in high academic prose, it is still not happy-fluffy-after-work reading. It is, however, a book in which Sowell does a wonderful job of covering the basic workings of economic principles, a subject that is so often poorly understood and so often easily misconstrued. In plain English, Sowell explains an economic principle and then illustrates how that principle operates, frequently contrasting the reactions of a capitalistic economy and a socialistic economy. If I could create a required reading list for Americans concerned with their future and their children's future, this would be among the top books on that list.

Epic. I read an earlier edition. Now, this one is expanded.

One of the best books I have read in a couple of years. Far from a polemic, Sowell fairly and evenhandedly covers a lot of ground.

You can tell it was a revision because there is a lot of info based on the Soviet Union. While relevant for a contrast and historically accurate, nobody today would spend as much time discussing the USSR.

Really whetted my appetite for more in-depth economic study.

Wow. This book is bad and its ideas are bad.

I picked Basic Economics up thinking that it would be somewhat similar to Naked Economics, by Charles Wheelan: a guide to a wide range of economic topics that gives both sides of an issue when both sides exist. Thomas Sowell gives a guide to a wide range of economic topics, but unapologetically ignores or misrepresents leftist views in any shape or form. This is detrimental to readers and the general discourse in our country (especially as he touts this book as a cover-all for those interested in the impact of economics on their lives, as seen through the political system).

As a student of Economics, as well as a modern American Progressive (who has flirted with the idea of socialism in the past), I am aware of the limitations of my chosen economic philosophies, and I'll acknowledge their weak points (I can't advocate moving away from a price-allocation system to a politically-allocated system of distributing goods, for instance).

One thing for me that was extremely important- not just for my studies as an economist, but for me as a person, was the focus on trade offs. Everything's a trade off. This is paramount to remember, and it pervades every aspect of what I liked and found useful in Sowell's book (the trade-off concept was conspicuously absent in places where it could've shown merit in leftist ideas). He does point out that economics is not a study of values, but a direct study of cause and effect. Unfortunately for everyone, this kind of disclaimer is vastly irresponsible, since he fails to count social benefit (which is well documented) as a benefit, but points out the costs of social programs and anti-free market ideas as costs on the system. This is dishonest.

Things I liked
- Did make note that econ is the study of allocation of scarce resources and described that concept well
- Conclusively showed that price-allocation was the best system for satisfying people's needs and desires
- Clearly depicted the traditional views on supply and demand
- Used examples to show the many facets of a business that help it succeed or doom it to failure
- Talked about business concepts: return on investment, return on sales
- Showed that using political power to save jobs which could be done more efficiently elsewhere is detrimental to the whole economy
- Shows flaws in calculating inflation
- Describes why international trade is good through comparative and absolute advantages
- Describes concept of economies (and diseconomies) of scale, and why and when that's important
- *** Describes why national debt isn't an issue at all *** LOVED THIS SECTION. WHOLE NEW WAY OF THINKING
- Describes why commodity trading and franchising are good


Things I DIDN'T Like
- Didn't even think to seriously address the big flaw with price-allocation: that it only works if people are paid responsibly (somewhat equally; massive inequality destroys the feasibility of the price-allocation system)
- Examples of businesses in the last 100 years extremely limited (focuses on 4-6 companies)
- Preaches against minimum and fair wages without any historical context or examples as to their necessity
- Harps against anti-trust laws in what might almost be construed as a dangerously pro-business stance, not worrying very much at all about monopolies
- Ignores why commodity trading and franchising are bad
- Makes the common mistake of liberal (traditional sense) economists, and acts as if every nation is on the same footing when it comes to their ability to manage their economy
- Says government is bad at picking winners and losers; so too is the free market from time to time ("Capitalism means male baldness research gets more funding than malaria research." - Bill Gates)
- Skirts around productivity and workers' pay without providing helpful or conclusive arguments
- Tries to argue in favor of private insurance; been proven time and again to be a bad idea
- Ignores government's and unions' involvement in creating post-WWII prosperity
- Only example for when socialized programs are bad: housing crisis; USSR. Ignores successful Western Europe.
- Says outsourcing isn't hurtful; ignores the fact that it IS. Also doesn't discuss possible ways of addressing this.

And all of his "popular economic fallacies" are actually not fallacies. To address his false arguments:
- Predatory pricing DOES in fact happen
- Economics DOES in fact need to take value systems into account (utility, the end that economics seeks to maximize, has been proven to not rest on the number in your bank account, but largely on your values)
- He's a supply-side economist, which means he's wrong about the general economy. Savings do not recycle into the economy the way supply-siders suggest, as has been proven time and again through executive bonuses, falling real worker wages, increasing disparities in income and wealth, and the system of worker protections falling apart over the last 40 years in America.
- Ignores that corporations are literally psychopathic, and instead praises them as a savior-ideal

Overall, I say read it, but don't you dare stop here. Taken out of context, this book is dangerous for our country and the world.

Entertainment: 0
Education: 0 Star
Thesis: 0
Readability: 1
Inspiration: 0

I wish economics was taught in school. You could incorporate it in to both history and math classes and it would give people a good foundation for being able to analyze trade offs and think through consequences.

Sowell's book in many ways is just common sense, but I think that's partly because thinking about the world in economic terms comes fairly naturally to me/was developed in me early thanks to my dad. I'll never forget when I was only about 7 and had a great solution to all the world's problems and excitedly told him about it. He took the time to explain to me that someone had already thought up my idea and it was called communism and why it doesn't work. I became a libertarian that day and haven't looked back. :)

Of course, just having everyone learn economics doesn't mean we'd all agree or there wouldn't be competing schools of thought within economics. But I do think it would people be able to think through the consequences of a policy or idea past the initial change they are hoping for.

For example, it's easy to say that anyone who needs medical attention should be able to go to the ER and get care. But what about when the ER is backed up with people seeking treatment for nonemergency issues cause someone to die of a heart attack while waiting on a doctor? I know that's a rather simple example and we will never all agree on how to solve it but economics gives us a foundation for evaluating the costs and benefits of actions.

This book provides very clear explanations and examples on a wide range of topics such as profits, productivity and pay, investments, minimum wage, banking system, the role of government, etc. I especially learned from the sections on international trade, transfers of wealth and disparities in wealth.

I highly recommend this and will definitely pick up some of his other books.

Sowell is a must read for his eloquence and easy to understand explanations. There are very few people with his gift.

An excellent book that should be read by everyone. I don't give 5 star ratings to most books, and while this is no phenomenal work of literature, it is none the less a very readable book on economics (not an easy task), and it does a great job explaining the basic principles of economics in a very friendly way. Given the great number of fallacies, and the ever-present misuse/abuse of basic economics by politicians and the media both, the book deserves a prime place in anyone's library... Its good enough that I'm actually starting the author's (other) books on economics as well.

I picked up this book hoping to extend the economics education i got in college. What I got instead was an ideologically charged diatribe of the government and a love-fest of the free market.



Everything is backed up with anecdotal evidence and sweeping statements made with much hand waving. It sells itself on the fact that it has no "equations, graphs [or] jargon," but I find that to be a weakness. While it doesn't need be filled with graphs and such, some proofs would be nice. Instead he simply asserts things and moves on.



It does make some good points, but it is incredibly preachy and in most cases over simplified. If this is your only source of economics knowledge, you will become a free marketer, but other economics theories do make the case for government interventions in certain conditions. At $30 US this book is overvalued despite what he says, which is why I picked it up with the help of government intervention (the public library).

"For those who are willing to stop and think, basic economics provides some tools for evaluating policies and proposals in terms of their logical implications and empirical consequences"
-Thomas Sowell

Honestly I couldn't have summed up this book any better than that. Dr. Sowell has a way of plainly and concisely presenting economic principals. In this book he solely (no pun intended) used words to illustrate economic concepts. I feel like this book is a perfect introduction to economics and it has sparked my interest in this discipline. In short, Dr. Sowell is the homie.

Should be required reading for everyone on the planet.