Applied Economics: Thinking Beyond Stage One

Applied Economics: Thinking Beyond Stage One
by Thomas Sowell

Applied Economics: Thinking Beyond Stage One
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Book Summary Information

Author: Thomas Sowell
Edition: Hardcover
Audio: English (Unknown); English (Original Language); English (Published)
Published: 2008-12-09
ISBN: 0465003451
Number of pages: 352
Publisher: Basic Books

Book Reviews of Applied Economics: Thinking Beyond Stage One

Book Review: Can our politics ever get beyond stage one thinking?
Summary: 5 Stars

I've lost track of the number of Dr. Sowell's books I have read. He always provides straightforward explanations of each topic in language that is simple for the layman but respects basic economic principles.

This book is no exception, in Thomas Sowell's hands the "dismal science" brightens up a bit and shows its importance in explaining human affairs. I suppose it is too much to hope that a significant number of political types will read this book and start "Thinking Beyond Stage One." The few politicians that do, must be supported by unusually intelligent constituents that look beyond claimed legislative goals to the real incentives presented and their effects.

Dr. Sowell clearly explains the contrasting incentives that drive most politicians and their constituents. Living in the Bay Area he has numerous examples of the extreme form of this pathology. My friends in his area who do evaluate incentives, and do the numbers, are appalled by the stage one thinking that so dominates public affairs.

The author's chapter on free labor and slavery and all the variations between is clear and informed. He has spent a lifetime studying this issue and he presents the economics in a very robust form with excellent examples from his wide studies of many human societies.

His chapters on medical care and housing should be read by everyone interested in current affairs.

His treatment of risk and insurance and the perverse effects caused by government agencies is wide ranging and clear. He also describes private individuals who make a living by promoting costly conclusions based on "Stage One" thinking.

With the inclusion of chapters on immigration, discrimination, and the economic development of nations, Dr. Sowell has given us a wide-ranging sample of competent economic thinking applied to the real world. One could only wish our politics took better account of economic incentives. We would be immeasurably better off.

I will save this book as a reference for its broad and careful discussion of each topic with its many points and illustrations. Well worth reading again!

Summary of Applied Economics: Thinking Beyond Stage One

This revised edition of Applied Economics is about fifty percent larger than the first edition. It now includes a chapter on the economics of immigration and new sections of other chapters on such topics as the ?creative? financing of home-buying that led to the current ?subprime? mortgage crisis, the economics of organ transplants, and the political and economic incentives that lead to money earmarked for highways being diverted to mass transit and to a general neglect of infrastructure. On these and other topics, its examples are drawn from around the world. Much material in the first edition has been updated and supplemented. The revised and enlarged edition of Applied Economics retains the easy readability of the first edition, even for people with no prior knowledge of economics.

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