Review by Choice Review
Few economists write as clearly and as cogently as Sowell (Hoover Institution) and even fewer can convincingly apply core economic principles to a broad range of problems. His theme in this work is that the long-run consequences of public policy are usually different from, and often the opposite of, their short-run effects. Democratic governments virtually always discount the long run. Making matters worse, voters tend to choose political candidates based on their policy goals while ignoring the often perverse incentive structure established by the institutions constructed to pursue those goals. Economic analysis accepts that individuals will seek their personal interest within the constraints of their institutional environment. The first chapter on politics versus economics argues that in most cases markets are strongly preferable to bureaucratic controls. The political appeal of bureaucratic solutions rests heavily on the desirability of bureaucratic goals and on a misunderstanding of how markets work. To reinforce his argument Sowell examines labor markets, medical care, housing, discrimination, and development in poor countries. After reading his work we are grateful when public policies achieve even partial success. ^BSumming Up: Highly recommended. Public and undergraduate library collections. R. T. Averitt formerly, Smith College
Copyright American Library Association, used with permission.
Review by Publisher's Weekly Review
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. (Dec.) (c) Copyright PWxyz, LLC. All rights reserved
(c) Copyright PWxyz, LLC. All rights reserved
Review by Library Journal Review
This new book is a spirited and controversial examination of how economic choices in public policy often result in unforeseen consequences. Sowell, a professor of public policy at Stanford and author of Basic Economics: A Citizen's Guide to the Economy, examines labor, medical care, housing, and other areas of economic activity. He says that in stage-one thinking, making housing affordable by setting rent controls would seem to be self-evident but that such rent controls both reduce the stock of low-rent housing and cause that stock to deteriorate in condition. He explains that many landlords don't bother to offer properties when rents are low and that those who do find very little incentive to maintain them. On the institution of slavery in the American South, Sowell says slaves were usually better cared for than other laborers because of the slave owners' economic self-interest. He defends the existence of slums as low-cost housing that in the past allowed the residents who chose to live in them to use their funds for other purposes. His predictably laissez faire approach to economics will grate on many readers, but his reasoning is clear and thoughtful. Every library covering economics or public administration will require a copy.-Lawrence R. Maxted, Gannon Univ., Erie, PA (c) Copyright 2010. Library Journals LLC, a wholly owned subsidiary of Media Source, Inc. No redistribution permitted.
(c) Copyright Library Journals LLC, a wholly owned subsidiary of Media Source, Inc. No redistribution permitted.
