Now, it is a fact that people buy more products when the prices are low, and fewer products when the prices are high. The best thing of all is that all of these changes are automatic. Other times, prices can deliver good news as well.Ĭonsumers do not need to know about specific products to understand that there is plenty of it: prices tell them. However, you need to understand that it is not the prices which make products rare – they just reflect the reality.Īnd the reality can be expressed through the ratio of people who would like a certain product and the amount of available product. When there are not as many products as people would buy, the prices are high. Instead, they reflect the scarcity and availability of resources. If you are an economist than you know that prices do not represent the real value of the products. In economies controlled by the government, politicians decide who gets the goods which are produced, as well as how the resources are to be used.įree markets, on the other hand, follow a more reliable guideline: prices. They function better than any other kind of system.īut why? What makes them deliver good performance? We all know that free markets enable economic growth and prosperity. He has taught economics at universities around the country and is the Rose and Milton Friedman Senior Fellow on Public Policy at the Hoover Institution, Stanford University. Thomas Sowell is an author exploring the topic of economics. We recommend “Basic Economics” for people interested in economics and politics, as well as all enthusiasts who want to understand the world we live in a bit better. However, his real goal is to explain how many of the societal catastrophes are a result of inadequate governmental politics. Sowell offers a simple and understandable explanation of the fundamentals of economics. Readers who are not already familiar with the work of Thomas Sowell should look for the praises packed in blurbs from The Wall Street Journal, the American Enterprise Institute and The Washington Times.

Who Should Read “Basic Economics”? And Why?

In today’s summary, we will explain just that – the basics.

Whether we are interested in economics or not, it is part of our everyday lives.

Basic economics thomas sowell review