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Applied Economics: Thinking Beyond Stage One, by Thomas Sowell
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The application of economics to major contemporary real world problems--housing, medical care, discrimination, the economic development of nations--is the theme of this new book that tackles these and other issues head on in plain language, as distinguished from the usual jargon of economists. It examines economic policies not simply in terms of their immediate effects but also in terms of their later repercussions, which are often very different and longer lasting. The interplay of politics with economics is another theme of Applied Economics, whose examples are drawn from experiences around the world, showing how similar incentives and constraints tend to produce similar outcomes among very disparate peoples and cultures.
- Sales Rank: #707670 in Books
- Published on: 2003-11-13
- Released on: 2003-11-11
- Ingredients: Example Ingredients
- Original language: English
- Number of items: 1
- Dimensions: .93" h x 6.40" w x 9.52" l, 1.13 pounds
- Binding: Hardcover
- 256 pages
From Publishers Weekly
While politicians squabble over the pros and cons of price controls on prescription drugs, onlooking citizens are often left scratching their heads. Many of today's economic issues are obscured by their inherent complexity and the blarney coming from political talking heads. In his follow-up to Basic Economics, Sowell, a leading conservative spokesman and a senior fellow at the Hoover Institution, seeks to alleviate this confusion. He highlights the major differences between politicians (who act for the short term, i.e., reelection) and economists (who look at the long-range ramifications of policy), and urges voters to keep these differences in mind. Sowell then focuses on a few issues, including some political hot potatoes: medical care, housing, discrimination, insurance and the development of nations. He urges readers to consider not only the intended, immediate goal of a particular policy, but also its unintended, long-range impact. For instance, he says, supporters of nationalized health care overlook the fact that it often results in health-care shortages, reduced quality of services and black markets. The great achievement of Sowell's book is its simplicity. His writing is easy and lucid, an admirable trait considering the topic at hand. This book will not satisfy hard-core economic junkies, and Sowell does not pretend it will. His target audience is the average citizen who has little or no economics background, but would like the tools to think critically about economic issues. Some readers will be turned off by Sowell's preference for free-market principles, but the author is an esteemed economist and his explanations fit well within the mainstream. As a basic primer for the economically perplexed, this volume serves very well.
Copyright 2003 Reed Business Information, Inc.
Review
"Thomas Sowell is one of the fine scholars of our time." -- Ideas On Liberty
About the Author
Thomas Sowell has taught economics at a number of colleges and universities, including Cornell, University of California Los Angeles, and Amherst. He has published both scholarly and popular articles and books on economics, and is currently a scholar in residence at the Hoover Institution, Stanford University.
Most helpful customer reviews
165 of 166 people found the following review helpful.
Economics: Well Explained and Applied
By Dr. Victor S. Alpher
Thomas Sowell's new book (2004 imprimatur) came to my attention as he was interviewed on radio...I pulled into the nearest (independent) bookstore in the metropolis of Austin, Texas, finding and buying the lone copy back in the dreary Economics section.
I will certainly be reading more of Sowell's writings. Although a sequel to his book Basic Economics, this book stands well alone. In it, he tackles the current problems in this country involving the interaction of the political climate with basic economic principles. These include health care, housing, discrimination, risk, and the problems afflicting so-called third-world nations in economic development.
He takes an interesting historical perspective. For example, his analysis of slavery through the ages, and during the period of the American Colonies and southern United States is particularly cogent, and still of contemporary interest. How could slavery have survived so long? Was there such a variety of slave "status" and freedoms to act as has recently been portrayed, even in such films as "Gods & Generals". During this film, a complicated relationship between General Thomas J. Jackson and his personal cook is portrayed. They have discussions during which it is clear that the slave's status as a well-known cook, and his desire to defend HIS home from invasion as much as Jackson's is remarkable. Within Sowell's analysis of the antebellum South, it is not difficult to understand. In fact, he describes a situation in which slaves were put in less "risky" labor positions than Irish immigrants, a situation derived from their economic value in a cotton baling and transport operation.
I probably have not seen an economic "page turner" since reading George Gilder's "Wealth and Poverty" which was so important to understanding the Reagan era (it was, evidently, the "Bible" of many men responsible for early decisions during the Reagan administration and essential to understanding so-called supply-side economics).
I recommend this book highly. Sowell's insights are well-explained in "plain English." A short read, thoroughly enjoyable, that will stimilate the reader to think more deeply about the current issues that should lead to a more informed discussion outside the academic elite about the problems plaguing our economy.
59 of 59 people found the following review helpful.
An Election Year Must Read
By Robert Herring
Sowell takes the key political issues and challenges the reader to analyze not only their short term (Stage One) political impact but to also think ahead to their long term (Stage Two, Three, etc) economic impact. He reminds the reader that politicians do not think beyond Stage One because they will be praised (and elected) for the short term benefits but will not be held accountable much later when the long term consequences appear. He lays out the Stage One benefits of each political issue and then predicts the long term consequences that politicians don't address. Price controls on drugs and health care may have an immediate benefit, but the consumer will pay years later as health care quality decreases and new drug research declines. Reducing the price does not reduce the cost. Does raising the minimum wage really help entry level workers? What happens in the long term when communities raise taxes on businesses? Is free health care really free, or better?
We need to look beyond Stage One and separate politics from economics on the hot election year issues.
117 of 124 people found the following review helpful.
Great foundation for those who lack basic economic knowledg
By Michael Scalise
Excellent book. The United States as a whole would be far better off if everyone read this book. It would be a lot tougher for demagogues to sway public opinion regarding economic matters.
One reader's criticism was that there were no facts. Those people who do not believe in the free market will not want to accept certain statements from Sowell. If one wants to argue the merits of a free market versus government-controlled markets, this isn't the book. (Yes, unbelievably there are people who still think that socialism; communism and central planning are superior to free markets)
"This book will not satisfy hard-core economic junkies, and Sowell does not pretend it will. His target audience is the average citizen who has little or no economics background, but would like the tools to think critically about economic issues. "
I would also recommend the classic "Economics in one lesson" by Henry Hazlitt and Sowell's "Basic Economics". "Capitalism and Freedom" by Milton Friedman is another great book.
If one wants to read one of the best (and longest) economic books ever written, then I recommend "Human Action" by Ludwig von Mises (downloadable at [...]
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