Basic Economics, Thomas Sowell

Basic Economics, Thomas Sowell

This is a book everyone should have to read. He takes a complicated subject, the economy, and breaks it down to its most basic fundamentals. Its so easy, once you understand those fundamentals.

At the beginning of the book Mr. Sowell says that our ignorance costs a great deal of trouble. Because we don't know the basics, we fall victim to myths, very complicated myths that are not true, and do great harm. He equates the common understanding of economic principles in the US today to the myths that simple, scientificly ignorant tribesmen create to explain why trees move in the wind. They attribute spirits and emotions to the tree, not understanding how winds are created. Our economic ignorance is equally embarrassing, and he forges ahead to rid us of common myths and silly notions.

The first point is that the economy is not money. Rather, economics is the study of how resources that have multiple uses are distributed in society. In a free market, prices reflect a resources worth at a given time. By fixing prices, to slacken political pressure, politicians change the value of a resource, and bad things happen. Its simple economics, and Sowell shows with many good examples throughout recent history how these price-fixing actions affect society.

A fascinating read. Everyone should read this book, and all kids should have to read this excellent discourse in high school.

Read well, friends, read well.