Basic Economics: A Citizen's Guide to the Economy
Thomas Sowell
Top 10 Best Quotes
“Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount—and, if it is not, that worker is unlikely to be employed.”
“Economics is a study of cause-and-effect relationships in an economy. It's purpose is to discern the consequences of various ways of allocating resources which have alternative uses. It has nothing to say about philosophy or values, anymore than it has to say about music or literature.”
“As an entrepreneur in India put it: 'Indians have learned from painful experience that the state does not work on behalf of the people. More often than not, it works on behalf of itself.”
“Perhaps the most important thing about risk is its inescapability. Particular individuals, groups, or institutions may be sheltered from risk - but only at the cost of having someone else bear that risk. For a society as a whole, there is no someone else.”
“Misconceptions of business are almost inevitable in a society where most people have neither studied nor run businesses. In a society where most people are employees and consumers, it is easy to think of businesses as “them” – as impersonal organizations, whose internal operations are largely unknown and whose sums of money may sometimes be so huge as to be unfathomable.”
“Many have blamed the gasoline shortages and long lines at filling stations in 1973 on the Arab Oil embargo of that year. However, the shortages and long lines began months before the Arab oil embargo, right after price controls were imposed.”
“Although the word 'economy' may bring the term money to the minds of many, the truth is that for the whole of society money is nothing more than an artificial instrument that allows real things to be done, otherwise , the government could make us all rich simply by printing more bills. It is not money but the volume of goods and services that determines whether a country is poor or prosperous.”
“The fact that work is cheaper in Dubai than in Japan is not just a fluke. Work is more productive in richer countries. That is one of the reasons these countries are generally more prosperous. Selling used equipment from rich countries to poor countries can be an efficient way to handle the situation for both types of countries.”
“Put in different terms, profit is the price paid for efficiency. Clearly, the increase in efficiency must be greater than the profit, or else socialism would in practice have resulted in more affordable prices and greater prosperity, as its theorists hoped, but the latter never materialized in the real world.”
“One of the big differences between economics and politics is that politicians are not forced to pay attention to the consequences that will come after the next elections. An elected official, whose policies keep the electorate happy until Election Day, has a good chance of being reelected, even if those policies have disastrous consequences for years to come. There is no 'present value' for making political decision makers today take into account future consequences, when those consequences will come after the elections.”
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Book Keywords:
economy, oil, employment, blame, economics, socialism, jobs, politcal-pandering, minimum-wage
