Millions of Americans are Economic illiterates
You can include me. I've read a few primers over the years, but they didn't really stick with me. Pretty dry reading for the most part. Read a review of Thomas Sowell's latest book the other day. Looks like he's written a readable primer for the lay public. From an Amazon review:
Economist Thomas Sowell has chastized his profession for not doing enough to teach basic economics to the lay public. The consequence has too often been an uncritical acceptance by voters of government policies that, in the long run, do more harm than good. Taking up his own challenge, Dr. Sowell has penned this remarkable book which teaches us about free markets using a clear narrative devoid of mathematical jargon. We learn that often the best way to grasp the importance of free market ideas is to view the consequences of violating them. He provides numerous examples from the former Soviet Union and India of sometimes comic, but most often tragic, outcomes when prices are not allowed to guide the allocation of scarce resources. Often, this has lead to needless misery for millions of people.
But, let's not be smug. America is hardly immune to economic folly. A public largely ignorant of economics does not understand why outcomes sometimes fall woefully short of expectations, and continues to allow politicians to promote flawed policies. For example, why does rent control ultimately make affordable housing less available for lower income families when its intended purpose is exactly the opposite? Why do minimum wage laws reduce the number of jobs available to the young and unskilled? Why can tariffs on imported goods lead to a net loss of jobs? And why did NAFTA fail to produce the "giant sucking sound" so widely anticipated? Professor Sowell will provide the answers.
Economics is not a subject that should be blissfully ignored. When voters allow politicians to establish government policies that run afoul of free market principles, the consequences for the country as a whole can be severe. Look no further than the Great Depression to see how misguided programs can make something bad even worse.
So, by all means, read "Basic Economics" for a wonderful introduction to an important subject. Maybe you will learn to use the ballot box more effectively and help provide a better standard of living for all. Not too bad for the price of one book.
amazon.com |
