Basic Economics, Fifth Edition: A Common Sense Guide to the Economy

4.9 4.9 out of 5 stars | 4,717 ratings

Price: 22.57

Last update: 12-27-2024


About this item

In this fifth edition of Basic Economics, Thomas Sowell revises and updates his popular book on commonsense economics, bringing the world into clearer focus through a basic understanding of the fundamental economic principles and how they explain our lives. Drawing on lively examples from around the world and from centuries of history, Sowell explains basic economic principles for the general public in plain English.

Basic Economics, which has now been translated into six languages and has additional material online, remains true to its core principle: that the fundamental facts and principles of economics do not require jargon, graphs, or equations and can be learned in a relaxed and even enjoyable way.

PLEASE NOTE: When you purchase this title, the accompanying PDF will be available in your Audible Library along with the audio.


Top reviews from the United States

Amazon Customer
5.0 out of 5 stars Should be in EVERY high school and home school curriculum.
Reviewed in the United States on February 9, 2024
This book, and “The Thomas Sowell Reader,” are masterpieces of critical thinking, logic and practical economics. You don't need to be an expert to understand economics. Mr. Sowell delivers common-sense essays anyone can comprehend.

If you truly want to understand what works - and what doesn’t - in terms of economic policy, this easy to digest and thorough text from the thoughtful and brilliant mind of Thomas Sowell is your ticket.

I highly recommend this comprehensive work, together with anything written by Ludwig von Mises as well as Henry Hazlitt's “Economics in One Lesson.”

Additionally, if you want your loved ones to get a dose of timeless, practical critical thinking in short, entertaining and thought-provoking essays on wide ranging topics applicable to events relevant anytime (even to right now), PLEASE pick up, read, gift, include in your curriculum, etc., “The Thomas Sowell Reader.”
Richard B. Schwartz
5.0 out of 5 stars Pure and simply, a must-read.
Reviewed in the United States on June 29, 2020
This is a superb introduction to Economics, written without mathematical symbols or equations. It is written for the general reader and should be accessible to any interested general reader. It is a doorstop at nearly 700 pp. but it reads quickly and holds the attention well.

TS begins with a single concept and plays it out in a multiplicity of contexts: resources are scarce and can be put to multiple uses. Wood can be used to make desks, paper, mulch, etc. Beginning with that notion he explores prices, markets, work, pay, time, risk, the national economy, international economy, and so on. He provides a brief history of Economics and even asks a set of questions that a teacher (particularly a home schooler) might utilize.

Beginning as a Marxist, TS studied Economics with Milton Friedman at the University of Chicago. He is a 'Chicago-style' economist as well as one of the country's top public intellectuals. A few of his key comments will indicate his general orientation. He is skeptical of governmental intrusions and controls and is quick to point out the fact that many intelligent and educated people have a way of forgetting the basic laws of economics. Economics is often called the 'dismal science' because it has a way of undercutting wishes and dreams that may ultimately be delusionary. Rent control is a prime example of a 'nice' idea that inevitably brings negative results. Two lovely comments from his summation at the end of the book:

"Invidious comparisons and internecine struggles are the stuff of social melodrama, which in turn is the lifeblood of the media and politics, as well as portions of the intelligentsia" (p. 633).

"Empirical questions are questions that must be asked, if we are truly interested in the well-being of others, rather than in excitement or a sense of moral superiority for ourselves. Perhaps the most important distinction is between what sounds good and what works. The former may be sufficient for purposes of politics or moral preening, but not for the economic advancement of people in general or the poor in particular. For those who are willing to stop and think, basic economics provides some tools for evaluating policies and proposals in terms of their logical implications and empirical consequences" (p. 634).

Since logic, reason and empirical argument are in particularly short supply these days, this fifth edition of a contemporary classic is particularly useful. Note that it adds a new chapter (Chapter 23) on international wealth disparities. It may just be the best chapter in the book, because it takes a subject on which we are endlessly harangued and approaches it by offering examples from across the globe and from the beginnings of history. This is characteristic of TS; rather than mucking about in simplistic controversy he offers material from across the social sciences, diluting the issues of their fiery (and often irrational) atmospherics and provides insights and examples from areas and times with which contemporary controversialists are often unfamiliar.

This is a must-read.
raven
5.0 out of 5 stars A VERY important read... and more interesting than you expect
Reviewed in the United States on March 15, 2024
This probably won't change any minds that are already made up on the subject of economics... literally nothing will. But... if you think that maybe economics are something worth learning about (yes, it really is), this is a great place to start. It's written in easy to understand language with numerous historical examples... eg, "this is what was happening, here's how they tried to address it, and here's why it made things worse instead of better."

Liberals and conservatives alike could learn a lot from reading this.
Ronald Jones
5.0 out of 5 stars Very Informative
Reviewed in the United States on April 16, 2024
Very Informative!
Hector I.
5.0 out of 5 stars Great book for begginers
Reviewed in the United States on March 30, 2024
If you are interested in learning from economics and you don’t have an idea or where to start, read this book. Is simple to understand and provides simple examples.
George Willikers
5.0 out of 5 stars Proof You Shouldn't Judge a Book by its Cover
Reviewed in the United States on January 16, 2015
What sets Thomas Sowell apart from many economists and intellectuals is his ability to present complex ideas with both clarity and simplicity. As he himself once noted, "If academic writings were difficult because of the deep thoughts involved, that might be understandable, even if frustrating. Seldom is that the case, however. Jaw-breaking words often cover up very sloppy thinking." For Sowell, economics is no exception.

In Basic Economics, he reminds you that economics is the study of the use of scarce resources which have alternative uses. And with this fundamental truth in mind we see a master expositor at work. He derives many economic principles from this easily forgotten fact, offering you real-life examples along the way. This book was, of course, written for the layman. In fact, no prior knowledge of economics is needed before you read it. Yet the book is of such breadth and depth that economist Dr. Walter Williams says "it provides an understanding of some economic phenomena that might prove elusive to a Ph.D. economist."

As you read and become familiar with how Sowell thinks, you will yourself begin to think like an economist. You will learn to judge policies not by their proposed goals, but by the incentives they are likely to create, which may have the opposite effect of their intended goals. You will learn to think about not only a policy's immediate effects, but also its effects in the long run, and not only its effects to a specific group of people, but to everyone. In the process, many of your long-held cherished beliefs may be challenged.

Consider, for instance, minimum wage laws. Sowell explains why increasing the price an employer must pay his employees--though put into law for benevolent reasons--can have unintended bad effects, like an increase in unemployment. He also explains why, for similar reasons, rent control decreases the quality of apartment buildings, or why lowering the price of gas can cause a shortage.

This 5th edition of Basic Economics includes a new chapter on international disparities in wealth. An insightful chapter, Sowell explains why some countries enjoy luxury while others suffer poverty, pointing to such commonly overlooked factors as geography and culture. Another addition is that this book ends with a section of questions covering important economic issues. If you don't know the answer to a question, it tells you where in the book you can find it. This is especially helpful for someone forgetful like me, who must regularly return to refresh on economics. It's also helpful for quizzing yourself to see how well you understood the information.

To say that Sowell's books have boring covers and titles is an understatement. But they provide strong evidence for the claim that "you shouldn't judge a book by its cover." I recommend this book as a must-read to everyone, not just to aspiring economists. (I also highly recommend Henry Hazlitt's Economics in One Lesson.) However, I would be remiss if I did not include in this review any drawbacks, and there's a big one. Basic Economics will leave you more pessimistic for your country than before you opened it.

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