Thomas Sowell’s book is just an amazing book with so much information about basic
economics information. Thomas Sowell’s laid down different policies of the economy and gives
way to make it better around the world or progress it. He gave examples of difficult principle of
economics to show us in the easiest way. The book did not use any graphs to explain economics.
The book left lasting impressions showing different cases. The author utilized comparative
analysis to show how the government and the market are doing.
Sowell’s supports people that can produce more than they can own, the reason why trade
is the urge to produce sometimes we can’t have everything or what we want. When it comes to
trade, it’s about a choice and people who are trading will have to give up one product for a
different result. Making the right decision is not easy, but that is everyday life. Sowell’s also
talks about the labor market; he talks about medical care in America. He gave examples of
economics principles and how they can be used in the real world. The ways Sowell’s describes
what has big effects on people is the price incentives. People have budgets for different things,
and if price is high, it will make people not buy, and if its low it will influence them to buy.
People love low priced products, and they will line up to get the product. Price affects
individuals’ decisions and the way the behave in the market. One of the examples that the author
gave is if the government reduces the consultation fees that doctors’ charges, their response will
be to make the consultation short. They will make sure the consultation is short to continue
making the same money.
The author also laid down the results of choices. He brough forward that those who work
for the government usually do not face any suffering from the decisions they make. He brings out
that those who work in the private sector are more impacted by their choices. Sowell’s also talks
more about the political processes that can have a big effect on the economy. Politicians don’t
think about the future, they form policies that have quick results and then in the long run it
affects the people. They can easily get away from their mistakes and blame it on the previous
administration. One of the examples that the book gave is the taxes from the government. They
will tax big companies that are successful and with a lot of revenue. In the short run, the tax be
good but will affect them overall despite closing or moving of the business. The main idea of this
book is learned about simple economics and public policy.
Economic thinking and Christian ethical principles
There are different financial theories that are utilized in the book. For example, trade,
price, productivity etc. Sowell’s also laid down different cases that goes against Christianity
principles. People want to have more than they can release. And because of this urge it brings
trade. If you compare this to the Christian principle its is not good, it violates it. It our job as
people to work hard, and God put us this world to work, by working you are not just serving
other people and meet their needs. When we talk about incentives, it is one of the biggest factors
that will make people behave differently. One of the examples that he gave is the government
reducing consultation fees which will cause the doctors to also reduce the hours. Under Chrisian
value you are supposed to help people fully, but if you reduce hour for consultation just because
of incentives then you will be able to change people lives and treat them fully. As a doctor your
job is to treat patients and make sure they are healed.
Sowell’s also talks about discrimination and how it affects people and makes victims. He
also laid down the adverse economic influences related to insight and gave recommendations on
how to handle the vice. Christians values teaches that we should love one another. We should not
encourage the oppressor but try to eliminate oppression.
Sowell’s gave provided solutions to solve or talks about issues in our world. He talks
about rent and land use control can solve the issue of homelessness in our nation, Christian’s
principals suggest that we should established good rules and follow them. The author put upfront
way to shape the current public policy problems. Some of the current public policy problems we
have are homelessness, discrimination, and healthcare issues. Housing these days is a problem
everywhere, it is very difficult to afford a house and there are so many issues. Policy makers
know that housing is a big problem, but they are ignoring it. The cost of homes is quite different
and the only way to fix this problem is first to understand there is a problem and then find
solutions. There are many restrictions when it comes to utilizing land and people being displaced
which a problem where to put people. Populations relocating from various places cause high
housing prices. For example, people in California moving to Tennessee have caused homes to
become more expensive. Rich people from California come to Tennessee and buy all the homes
and will cause homelessness.
The Author suggests that homelessness needs to be addressed using land restrictions, and
control rent. Allowing people to acquire less land will reduce homelessness. If people can build
more homes, it will put the demand down, and the prices will go down. If there is rent control,
land will have a limit of how much they can charge for rent. They will be charging reasonable
prices and people will decide to live where they can afford it.
Discrimination is another situation that has adverse economic effects. Discrimination can
cost a lot depending on the situation. The growth of slums is the result of discrimination, which
is why anti-discrimination laws need to be passed and taken seriously, which encourages the
perpetrators to stop it and the results will strengthen the economy and make it better for
everyone.
References
Acemoglu,Daron. “Politics And Economics in Weak and Strong Sates. “Journal of Monetary
Economics 52,no.7(2005): 1199-1226
Nwogugu,Mike.Risk in The Global Real Estate Market. Hoboken:John Wiley & Sons,2012.
Sowell, Thomas.Applied Economics: Thinking Beyond Stage One. 2nd ed. New York:
Basic Books, Inc., 2009. ISBN: 9780465003457.
