A Review of Basic Economics by Thomas Sowell 3 Comments
Thomas Sowell is a brilliant economist who started out in poverty and became one of the premier American economists of our time. In addition to being a well-educated and globally respected economist, he has the ability to break down complex economics terminology into easy to understand examples that everyday people like you and I can understand. He currently is a professor of economics at Stanford University, but after reading this book, I think he has many more students outside of his classroom.
Basic Economics is broken down into key sections so that you can digest each relevant economic principle at your own pace. Each section also provides a background of the topic being discussed along with examples to illustrate how we see these principles in action in our everyday lives. Every section is almost like a complete book in and of itself while the whole book is a collective masterpiece of economic teaching for Main St. If everyone read this book, we would have a much more prosperous economy.
This book does a great job of providing examples of cause and effect relationships. It covers some things you probably never even considered as being economic based. This is the main strength of this book compared to others in its field; it lays out some of the easiest examples to understand that I have ever seen. Whether it’s on the highly debated topic of minimum wages or the effect of unions, this book breaks down complex arguments into easily digestible economic outcomes.
Politics vs. Economics
Sowell is a master storyteller when it comes to relating how a government’s best intention can actually have negative outcomes. He elaborates on such topics as subsidized housing, rent control laws, affirmative action and more. The outcomes of these well intentioned government laws will shock you! In fact, after reading this, it made me think twice before supporting many of the initiatives that lawmakers press for. You actually start to see how they might actually make things worse.
Easy to Read
Sowell does a great job writing this book for non-academics. Many times economics books are filled with language that average readers can’t understand, or worse, pages of math formulas that no one will look at for more than a few seconds. Basic Economics doesn’t have any of that and the author doesn’t use Ivy League vocabulary. Although the book is rather lengthy, it is pretty simple to understand.
Studying economics can be dry and boring for most of us. Because of this, many people just zone out and never learn fundamental economic principles. Basic Economics is a book that is easy for anyone to read and understand. With its everyday examples, Sowell does a fantastic job helping us understand how the principles are applied in our daily life. This book is a must read for any investor or business owner. You simply have to understand economics in these areas and this book simplifies it into easy to understand bits.