BASIC ECONOMICS

if you want to read "one" book in economics then this is the one. Great book. Please read it cover to cover. “What each individual wills is obstructed by everyone else, and what emerges is something that no one willed.”― Engels Friedrich Thomas Sowell breaks down the myth that Govt knows the best in his treatise aptly named basics economics. Furthermore, he proves through data that most actions taken by the govt show its effects many years or even decades after incumbent politicians are gone thus they themselves have never pay the price their own follies. Unlike the "govt" a Business will go "bust" within a few months if it doesn't allocate capital appropriately. The euro tunnel and Concord plane were both colossal sink holes but the govt continued its hemorrhage policy because it pandered to "good" press. He covers India and China in detail. Nehru quotes “I hate the word profit” This was the pernicious mindset which led India to a socialist and nationalization path which kept India poor for a very long time even after independence. Meanwhile China also suffered immensely under the “socialist” reforms under Mao and only emerged out of its poverty after Mao died and Deng Xiaoping reversed all those policies. Income inequality (or genie coefficient) and wealth gap are reasons made by politician to bring in reforms which ultimately don't benefit the poor, rather panders to their fear. Human capital cannot be re-balanced with redistribution of wealth. Case in point being the success of Marshall Plan after WW II where Germany was quickly able to recover from its dilapidated infrastructure because human capital is in the head and cannot be take away. Meanwhile the same massive "aid" programs in African nations never yielded any results because people "skills" were absent in those nations. Role of Location : Most rivers in western Europe flow to the sea meanwhile those in eastern Europe flow to the land and lakes making navigation and transport of goods very difficult. Consequently eastern Europe is less developed than western Europe. Africa has twice the landmass of Europe but only half the coastline because rivers in Europe have estuaries which increase touch points with land making navigation very convenient. In his opinion the best thing to do is "nothing" and keep the flow 'on' and allow the water to find it own level. The 1930 stock market crash and subsequent unemployment spike was exacerbated by subsequent govt action as evidence now indicate. Most problems in the world related poverty, malnutrition and its depredations are caused by populist action because people don't understand economics and can be manipulated by politicians who pander to their delusions. Economics and morality should be taught as essential subject in every schools because they are most important values of life. It is more important to understand some economics than to know how many planets revolve around the sun or salt analysis in a lab. Role of Morality : Thomas also postulates the as much as Adam Smith was a proponent of free markets he also was a professor of Morality. Morality is what separates the Wheat from the Chaff Mean. It is quite possible the profit seeking may lead to avarice and unscrupulous behavior. It may also mean the need for third party in transaction where trust is in deficit. Thus economics and morality should be taught a very young age. Shoplifting in India is much higher than in Europe. If people are taught to respect the self they tend to do well in their personal lives too. This is a great book and what I have mentioned about are only a few snippets from the book. There is chapter dedicated to Great economist like James Steuart, Adam Smith, David Ricardo, Thomas Malthus,John Stuart Mill, Alfred Marshal, John Maynard Keynes, Milton Freedman. Economics back then was a political subject and did not concern with the lives of common citizens. Its funny that some of the concepts like demand and supply and their relationship were developed as late s 1890 by Alfred Marshall. Great book. Please read it cover to cover.

Started reading...good explanation of basic economics concepts

A book on economics, written in a lucid style.

This is one of finest text on economics ever written. A brilliant introduction to the genius of Thomas Sowell. The packaging on the other hand should be criticised in strongest terms. The book was placed in a thin plastic wrap and shipped. I had expected at least a bubble wrap or better a cardboard box.

Very lucid and readable. Can serve as a supplementary material for a coventional economics text book. It is vigourous defence of classical economics. Although quite bulky, very easy to complete it.

It’s one of the best books if people want to understand why socialism doesn’t work anywhere. Must read for all young adults.

First read it

A proper antidote to all irrational socialist thinking about economics. Sowell's brilliant intellect and analytical prowess shines through all its pages.