I have never been interested in the study of Economics. I read this overview of the subject as a challenge. I had been in a discussion about public policies with an individual many months ago. They said to me, "You don't know anything about economics." Well, that statement wasn't entirely baseless. I didn't know very much about economics. But, I could change that. I could educate myself. So, I took it as a challenge.
After reading Basic Economics by Thomas Sowell I would still say I don't know very much about economics. I know a lot more than when I started, though. The thing about economics is, that it can be complicated. An economy is like a web where no transaction happens in isolation. All the purchasing decisions of individuals are interconnected in this web of consequences. It can be hard to determine what effect a single action will have or the accumulative effect of multiple single actions will have in the long run.
Right off the bat in the book, Economics is defined as the study of the allocation of scarce resources. This definition is driven home chapter after chapter. What is the scarce resource? Money? Labor? Capital? Milk? Fuel? Time? These resources are not infinite and there are systems set up within societies to allocate these resources to their end purpose.
The book makes a case for free market, price driven economies as being the most prosperous. When the pie is bigger even the people with a small piece are benefited.
I really enjoyed the style that the information was presented. There were many current real world examples, and many scenarios illustrated by real historical events. Nothing was confusing. I could follow all the points. I feel like the information was laid out and then restated a few different ways just to make the points clear. I really "got it" once I finished a chapter.
This introduction to Economics has made me interested in learning more. It has made me aware of my own deficiencies in this area of knowledge. The saying, "The more you know, the more you know you don't know." Is true.
One of the neat things about this book and Thomas Sowell is that he has created questions to go with each chapter for those using this book as part of their homeschool curriculum. The questions are in a PDF file that can be downloaded from his website: tsowell.com.
What have you been reading? Let me know in the comments!
Ecclesiastes 12:12
And further, by these, my son,
be admonished: of making many books
there is no end; and much study is a
weariness of the flesh.
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