Basic Economics: A Common Sense Guide to the Economy

This is a must read for everybody. Every citizen. It’s not a technical book. It’s written in very plain, engaging language, and you will learn so much wisdom from this book. It’s also a fast read.

Outstanding book to cover virtual all areas of economy in capital and freedom countries. This book is very well for all adults, and young adults, with information provide when understanding in business and politics ... and more.

Don't fool yourself into thinking that a book this thick on basic economics would be outside of your purview, too complicated for you, or too high-brow. Sowell not only makes an economics book thoroughly accessible and interesting and relevant, he (purposefully or not) creates economists out of his readers. I am almost finished with this book and I am amazed at how far off base I was when I thought I had a good definition of economics. Economics has less to do with money and more about resources and supply and human behavior; Thomas Sowell shows him himself in Basic Economics to be both deeply aware of and full of insight regarding all three. If you have any socialist or communist leanings, please read this book and be cured of this lunacy, through simple history and practical examples of how government intervention in economics usually, if not every time, results in worse problems it so proudly touts it is solving. Brilliant and illuminating as usual for the author. Grateful for this man.

Thomas Sowell’s Basic Economics is a must-read for anyone looking to make smarter, more informed decisions about the world around them. Whether you’re a complete beginner or someone with prior knowledge of economics, this book is an excellent resource to build or refresh your understanding. Sowell explains economic principles in simple, clear language that’s free of technical jargon and graphs. Instead, he uses relatable examples to show how these ideas play out in everyday life. For instance, he dives into why policies like minimum wage laws, rent control, or even “price gouging” during emergencies often create unintended consequences. These real-world examples make the concepts accessible and relevant, even to those who’ve never studied economics before. One of the greatest strengths of this book is how it helps readers think critically. Sowell emphasizes looking beyond the immediate effects of a policy to understand its long-term impact and unintended ripple effects. This skill is invaluable for evaluating policies, managing personal finances, or simply making sense of current events. Lifelong learning is something I value deeply, and I believe it’s important for all of us to stay curious and informed. Even though I have an MBA, I found this book to be an excellent opportunity to revisit economic principles and explore new perspectives. Sowell’s updates and insights on current economic challenges make this book not just a review, but a fresh take on how economics continues to shape our lives. This book is more than just an introduction to economics—it’s a tool to empower readers. By understanding the basic principles of how resources are allocated and decisions are made, you’ll be better equipped to navigate everything from personal decisions to public debates. Economics affects all of us, whether we’re voting on policies, buying a home, or planning for the future. Sowell provides the foundation for thinking critically about these decisions. For society as a whole, economic literacy is crucial. An informed population can evaluate policies, ask tough questions, and hold leaders accountable. This book provides the knowledge and confidence to do just that, making it a resource that benefits individuals and communities alike. If you’re looking to understand economics in a way that’s practical, insightful, and easy to follow, Basic Economics is a fantastic choice. It’s a reminder that learning doesn’t stop with a degree—and that staying informed is one of the best investments we can make in ourselves and our future.

This is well written without a lot of technical jargon and math. Clearly explained principals. I enjoyed it.

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.

Leitura obrigatória! Sowell é um dos maiores pensadores vivos.

I've been a marxist most of my life. Since 2015 or so, I started my transformation into more of a centrist as I kept learning more facts about reality leftism started making less sense. However, in 2020 I was introduced to Thomas Sowell and I became intrigued. Since I have already been lied to by leftists essentially my whole life, I didn't trust anything anyone told me and I started fact checking everything from him and for all the stuff I've been able to fact checked, it's turned out to be completely accurate. I'm impressed with how humble and thorough this man is. I am now a rightist, because as some people have said, the facts of life are right-wing and the more I learn, the more I realise this to be true. It was also relatable to know that Sowell also fell for the lies of Marxism/leftism for a big chunk of his life. Basic Economics is the first book of Sowell's I read and the more books from Sowell I read the more I feel like I can see the code in the Matrix and really know how the world works.

Every politican should be MADE to read this book. They say that economics is like sex - it's better if you know what you're doing and how to communicate it. As a professional portfolio manager, I'm always getting questions from friends and family about the market. I know the answers, but found them impossible to communicate - this book has helped me explain complicated economic ideas without any numbers and with excellent examples. The best comprehensive Economics book accessable in lay person's language.

Very useful

Thomas Sowell is becoming more mainstream as he challenges the some of the policy and media positions in regard to economic decision making.