Basic Economics: A Citizen's Guide to the Economy: Revised and Expanded Edition

Thomas Sowell is one of the brightest men in the world, but more important than raw intellect, he has a unique capability of making difficult concepts readily grasped by people of all different backgrounds. I like this book because it consciously shrugs off charts, graphs, and equations and gives instead a real-world, example-based overview of basic economic theory.It will come as a shock to no one familiar with Sowell that the book is quite conservative ideologically, though, as one reviewer pointed out, most is just common sense explained more lucidly than usual. The book embraces the classical definition of economics as "the study of the use of scarce resources which have alternative uses" from the outset, and Sowell explains through numerous historical examples, the consequences that flow from that conceptualization.I agree with Sowell on most key issues, though there are a few minor areas where I disagree with him. Both Sowell and I prefer a free market government, but Sowell sees things in such a free-trade light that he overlooks (or at least ignores in the text) needed regulation (licensing for doctors, pilots, etc.) as necessary for the common good of the society as a whole for safety reasons. Likewise he tends to overlook the good in negotiated agreements with groups of workers (largely union but also nonunion) with set scales of seniority and benefits (compensation, vacation accrual, etc.) The time and manpower General Motors or American Airlines would have to exert to manage compensation and status for their legions of employees tends to bog down into an unmanageable morass of intracompany central planning (which Sowell decries in an economy at large.) These critiques are minor nit-picks, though, and do not detract in a significant way from the brilliance of this book.This is an excellent book for anyone wishing to understand economics, and is especially effective at topically dividing free market and centrally planned economies. I have highly recommended this book to many people and will continue to do so. If you thought economics had to be painful, think again: this is an erudite and easily comprehensible text that deserves a place on your bookshelf. Sowell is perhaps the ultimate scarce resource: a man that can explain the theory and practicality of economic theory concisely and interestingly. Brilliant.

The amount of information crammed between the covers of this book will help each reader to develop an accurate perspective of economics... and an understanding that economics is not simply the study of the market; trading of goods, and profit and loss (as at least one such simpleton once thought). I only wish that I had read this book 20 years ago. Many of the conclusions I’ve reached in my life through first-person observations, mistakes, and limited understanding, might well have been reached much sooner if I’d read this book years ago.Dr. Sowell helps to clarify the complex topic of economics in a manner that even a moron can understand, and he does so without dumbing down it’s complexity. Sowell simply defines the subject of economics, presents the many variables which affect economics, and provide examples throughout history which help the reader to truly understand and develop their own processes by which to determine the effects which different actions may have on the economy under a variety of conditions.I was so impressed, that I purchased “Knowledge and Decisions” (also authored by Dr. Sowell) as soon as I finished this book. By the way... K&D is superb as well; Sowell is brilliant.

Economics, like other fields of inquiry, has its basics and its advanced concepts. However, writers on the subject seem to have a lot of trouble making that distinction.A physicist knows that first you explain the basics - the law of gravity, laws of motion, concepts of weight and mass, and so forth. Then, for those who really need to know, you go on to optics, relativity, quantum mechanics, etc.Unfortunately, most economics texts insist on delving right into the equivalent of quantum mechanics. The result is both soporific and deceptive. It gives the reader the idea that this stuff is really too hard to understand except for "professionals". (I sometimes wonder if they're poor writers, or if they are just trying to set themselves above the masses.)Sowell does the best job I've ever seen of explaining the basics in a lucid, engaging style. We're talking basics of supply and demand, why subsidies cause oversupply, while taxes and controls cause undersupply. Comparitive advantage and why free trade between nations helps both sides overall (though individuals may suffer).I've seen reviews that blast this presentation as "biased". I think such criticism is misplaced. Economics is about what happens under various conditions, and doesn't pretend to make political or moral judgements about the outcome.For example, economics says clearly that having a forced "high-risk" pool for automobile insurance causes distortion in the price of automobile insurance policies - some drivers end up subsidizing those with bad records. That's a simple prediction, akin to saying that if you drop a hammer, it will fall downwards, not hover or rise. It does *not* indicate whether or not such a pool is a good or bad idea. It just lets you know something about the costs of the law, and allows some cost-benefit analysis to see whether it's worth it (perhaps society comes off better because there are fewer uninsured drivers, for example).Where Sowell does become impatient is when advocates of governmental intervention (read: liberals) fail to acknowledge the realities of economics. Many politicians and activists would really rather not look at the economic results of a policy, because it might turn out not to be such a stellar idea after all. Take rent control. By holding prices below market level, basic economics says it will cause supply to run under demand, thereby causing a housing shortage. That's not a moral judgment on rent control - it's just the way the market behaves. It's not being biased to point out that policies have economic costs. It's just reality.If you are ready to gain a decent understanding of the basics, this is the place to get it. If you have an ideological ax to grind concerning how you think the economic world *ought* to work, instead of the way it does work, then you probably won't care much for this book.

We would be a stronger, more self-reliant, less-indebted country if we could somehow incentivize our population to read this book. Sowell is brilliant.

I am an economist. I wish I had this book when I was in school. It explains in a very easy to understand way what my professors made complex. Instead of a lot of daunting graphs and charts, Dr. Sowell uses a very conversational approach.This book has been revised and updated, but I much prefer this version.

great book, goes into great detail. it's like a more in-depth version of economics in one lesson. provides many examples to highlight point and explains the general philosophy of the Chicago school of economics.

経済学の考え方を数式や図さえも使わず、論理を損なうことなく文章だけで解説していく。実際の国や企業（歴史上および現代）の様々な事例とともに、経済学の基本を学ぶことができる。　扱う範囲は競争市場と独占・カルテル、労働市場、リスク、金融、公共経済、国際経済と幅広く、専門用語をあまり使わずに入門レベルの内容をカバーしている。　比較的簡明な文章は大学の外書講読の授業にも最適だろう。全て文章なのでＣＤ版があり、リスニングの教材にするのも良い。

I have never been really interested in reading about Economics but a chance mention of the excellent writing by Thomas Sowell led me to select this his latest book. Once I started to read it I couldn't put it down. I think everyone who is capable of reading, especially politicians should study this book and learn from it. After reading and digesting the subject one wonders why we really need politicians. In fact I have reached the conclusion that we don't and that the only purpose of government is to grow and protect government. Politicians are needed to protect politicians and to create political jobs and so on forever regressing into a nightmare of escalating costs at the expense of those who actually create something of value.The logic applied to the subject of price control is superb. He systematically destroys the argument that rent control creates low cost housing for everyone and goes on to demonstrate that time and time again it creates homelessness and housing shortages. Yet governments do it because it's popular with voters!!!This book is easy to read and understand and I recommend it to anyone who is interested or inquisitive about the subject. Although Sowell refers mainly to the US economy, essentially it relates to any country where free market dynamics exist.

Brilliant. He provides easy access to difficult ideas.

I'm reading this book at the moment... i have been for some time, it is full of very useful information, but for some reason has failed to engage me. I know it contains much that i need to know, but it does not compel me to turn the pages.Maybe i've been spoilt, reading a couple by Bill Bonner prior to this. Now he's funny! i was much more entertained than enlightened by Bonner's work, the reverse applies to Thomas Sowell's book.(i think that's a compliment)