Basic Economics: A Citizen's Guide to the Economy
by Thomas Sowell

Mar 2001

The antidote

...for all those horrible, dry, and completely useless economics texts taught in the halls of academia. It has been noted, quite sadly but correctly, that the main use of the field of economics is to employ economists. Most standard economic theory is nonsense, because it is based on the idea that man acts 100% rationally at all times and always considers the action with the highest utility function.

The majority of economists are embarrassed to admit their work is closer to sociology than mathematics, and so they try to fudge it by making their work LOOK like mathematics as much as they can. In a desperate bid for legitimacy, they apply so many formulas and calculations that the result looks like the scribblings of an idiot savant on a blackboard (and carries about as much meaning).

Standard economic theory (as taught in universities) might work if people were soulless robots who acted with the precision and predictability of computer programs. But they are not and do not. Clearly standard economics as commonly taught has failed… as most politicians, most of the general public, and even many CEOs do not understand the basic function of price and the implications of supply and demand in a free market economy.

This book lays it all out clearly, with no mumbo jumbo and no vapid theories that are dependent on retrofitted curves or laughable variables to try and look impressive. Mr. Sowell speaks plainly, conveying simple concepts that ivy league professors find themselves at a loss to understand (how else to explain a lingering taste for socialist policies?).

If you want to understand how economics works without the ivory tower hype, buy this book. If I had my way this book would be required reading for every politician, and they would have to demonstrate an understanding of its contents before uttering word one about taxes, or profits, or moral obligations of business, or anything else related to the economy.