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Product Description

From one of America's most distinguished economists, a short, brilliant and revelatory book: the fundamental ideas people most commonly get wrong about economics, and how to think about the subject better.
Economic Facts and Fallacies exposes some of the most popular fallacies about economic issues--and does so in a lively manner and without requiring any prior knowledge of economics by the readers. These fallacies include many beliefs widely disseminated in the media and by politicians, such as fallacies about urban problems, income differences, male-female economic differences, as well as economics fallacies about academia, about race, and about Third World countries.
One of the themes of Economic Facts and Fallacies is that fallacies are not simply crazy ideas but in fact have a certain plausibility that gives them their staying power--and makes careful examination of their flaws both necessary and important, as well as sometimes humorous.
Written in the easy to follow style of the author's Basic Economics, this latest book is able to go into greater depth, with real world examples, on specific issues.

Customer Reviews:

• Willful Error...Forever.
  Economic Fallacies is the third book by Thomas Sowell I've read this year and it continues to illustrate why he is one of the most important conservatives in America today. His writing beams with scholarship and clarity. There are no wasted words and the work is an arsenal of information. These chapters should be read and reread as they thoroughly refute the positions of those who irrationally regard America as being a racist, sexist and corrupt state.
  
  Sowell debunks the myth of female oppression by highlighting the way that statistics are jiggled in the hopes of morphing the USA into a patriarchy. Indeed, in my opinion, our nation is closer to being a matriarchy than it is anything else. The old 74 cent to the dollar feminist canard is refuted after he teases out the example of unmarried, childless women. They oftentimes are anything but oppressed. Indeed, in many cases they make even more money than their male age-mate peers. Much of the difference between the sexes, in terms of wage, is a result of personal choice. Women work fewer hours and are more likely to choose stability over cash when deciding on a career. Women also select less dangerous jobs than do men as indicated by the statistic he cites showing that 92 percent of those who die in job-related accidents are male.
  
  In terms of class, all of us who ever have tried to debate the left comprehend the error in their perceptions--as does Sowell who eliminates their positions with ease. Unfortunately, it's a serious challenge to ever get them to come around as they would feel contaminated should they ever try to examine world events through the eyes of a conservative. Rife among our opposition is the belief that only a finite amount of money exists in the world, and, if you have lots of it, that automatically means that thousands have none of it. While pseudo-liberals appear to have heard of "economic growth" they have yet to internalize its meaning. This is why they are so enamored with redistributing the rest of population's wealth. They dub this larceny "social justice" despite real social justice embodying the practice of letting people keep what they earn. Tragically, without a basic understanding of economics the left will continue to hike taxes until...the welfare state collapses along with the nation as a whole. Once they eradicate the rich there will be no one left to fund the dole.
  
  With race, Sowell tears apart [yet again] the notion that blacks make less due to discrimination. He refers to an argument here I never heard elsewhere--but greatly appreciate--which is that when a particular group's mean age is lower, as is the case with blacks, they generally have lower incomes than do groups with higher mean ages. This makes perfect sense as a group of 20-year-olds never make as much as those nearing the end of that particular decade; although, his insight matters little as the mainstream media has no use for nuance. They crusade against injustice even though, most often, they are ones who perpetuate it.
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• Commmon Sense
  You can always Thomas Sowell to be right on with anything he writes. Check out any of his books. I've yet to read anything of his that wasn't well written and accurate....more info
• Excellent Analysis
  As usual, Mr. Sowell gives an excellent analysis of underlying factors that are easy to overlook in many superficial economic and life situations. Not using the usual jargon, he explains in simple terms facts of life and goes below the "average" and looks at commonalities and differences that cause apparent discrimination. Well written and very readable....more info
• Superficial, moderate, regimist: politically correct conservatism
  The first chapter of Thomas Woods's Meltdown is called "The Elephant in the Room." Dr. Woods, of course, is referring to the Federal Reserve -- a subject that merits just a few superficial mentions in Thomas Sowell's Economic Facts and Fallacies, all in reference to the Fed's statistical arm. In other words, the greatest economic fallacy of all -- that the Fed is a free-market institution that doesn't pervert and distort every single economic transaction in the United States (and the world!) -- is not even touched. As such, this book is essentially a hot pile of worthlessness.
  
  There are some interesting insights and facts that (barely) merit a second star. But for the most part, Dr. Sowell's economics are child's play. He accepts the Fed, fiat-money central banking, the massive warfare state, drug prohibition, etc., and the state itself, without comment. He argues that CPI actually understates "inflation," thereby conceding the Keynesian definition of "inflation" as a rise in the price level, while it actually means a rise in the supply of money -- THE most crucial economic idea -- which he is 100% silent about. Prices would be falling absent the Fed's Communistic central planning, and these rises in living standards are sucked away from the poor and working class and given to Dr. Sowell's elitist paymasters.
  
  Again, this book has a few decent insights, but Dr. Sowell misses the forest for the trees. He's essentially a dancing monkey; a stage clown and token for the Establishment to point at, who tiptoes very carefully within the confines of politically correct conservatism. There are only two distinctions among the schools of economics: Austrians and everybody else -- and Sowell is NOT an Austrian. As such, his economics are WRONG, and wrong is wrong -- he's not "less wrong" than Keynesians or Marxists; they're all just wrong! Sowell's love of the Nanny State (albeit in conservative guise) blinded him, a supposed economic genius, to the obvious and inevitable crash, whereas Austrian thinkers saw it coming 1000 miles away. This book is a worthy read solely for its demonstration that "conservative" economics is as morally and intellectually bankrupt as any other element of "conservative" political ideology. Stick with Austro-libertarianism instead....more info
• Economic Facts and Fallacies
  Thomas Sowell is prolific and clear writer who revisits economic issues and places them in perspective so that its easy to see just how timeless the lessons of economics really are. There really is no "free lunch"....more info
• Economic Facts and Fallacies
  A good companion to Basic Ecomics or a good stand alone read if you don't want to go into alot of depth in each area. Sowell writes for the everyday person in a manner that you can relate....more info
• Well thought out and solid arguments
  Certainly no doubt about the author's viewpoint and solid facts. Would love to read a book about where the exceptions of supply and demand do not apply. ...more info
• Fallacies unveiled but facts remain elusive
  As a first read of Thomas Sowell's work, I was impressed by the depth of information and the clarity of his writing. The organization of topics was clear and straightforward. However, if it were meant as a popular economic book, it comes across as dry due to its overtly academic style.
  
  The main thesis of this book puts into question strongly held beliefs in urbanization, sex differences, third world versus first world differences and the like by encouraging readers to be questioning of statistics reported in the popular presses and media. Essentially, it is an exercise of spotting Simpson's paradox - where opposite associations are concluded depending on how one sliced, diced and spliced up the data.
  
  While the reader (may) gain new insight into controversial topics drawn from group comparisons, Sowell does not provide any clear solution on how to navigate the high seas of information sifting through fallacies from something real, believable or true. His only recourse is a Fireabrand-like questioning of whatever is being presented.
  
  While the ideas Sowell presents are not new, Economic Facts and Fallacies is certainly a courageous book in an attempt to tackle the misinformation bull by its horns, and puts to question certain held policies which may do more societal harm than good.
  
  
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• Classic Sowell - Great
  Thomas Sowell sees people's world views as coming from some conceptual constructs which are often based on faulty premises and faulty thinking. He not only smashes lots of common notions, but tries to expose the ideas which lead people to accept those false ideas.
  
  He does this in a fair and to a large part objective manner. So, for example, if he is looking at how discrimination factors into earnings differences between men and women, or blacks and whites he will examine many factors which contribute to those differences. Reasoning that if we can identify 3 or 4 other causes of earnings differences, and those factors account for some of the difference, then discrimination and other unidentified factors could only account for what is left.
  
  He also exposes factors which make some the the statistics we normally see misleading. So, for example, if the average age of one group of people is 30 and another is 35 and a third is 43, then we would expect that their incomes would also be different, with the older groups making more money. This is what we see with Blacks (30), all Americans (35) and Japanese Americans (43). So at least some of the income differences are explained by age.
  
  The book examines:
  - Urban Facts and Fallacies where interesting facts about city planning come to light
  - Male-Female Facts and Fallacies
  - Academic
  - Income
  - Race
  - Third World poverty
  
  The book is jam packed with information, and insights. You are bound to have ideas you held to be true shown clearly to have overlooked important variables.
  
  After reading this book, you will have a better understanding of the reality of these topics and the statistics used to support various views....more info
• must read
  Excellent book as usual. Simple, straightforward presentation of important information. A must read if you're not afraid of the truth. ...more info
• Economic Facts and Fallacies by Thomas Sowell
  Excellent book. Easy to read and understand. Everyone should read this prior to any and all elections....more info
• Economic Fact s & Fallacies
  It is just too bad that Sowell's work is not mandatory reading for everyone. ...more info
• The Book Your Friends Need to Read
  Easy to understand, EVERYONE needs to read this book. Once again, Sowell exposes the fallacies (as he calls them) of many social and economic perceptions pushed by the Left. His points are simple and extremely relevant, backed up by several dozen factual references for each chapter. Perfect gift for your friends who refuse to concede the failures of Big Government social policies! This book should be a staple in your library....more info
• Not as data driven as I would like
  I found this book biased: in many places he validly finds flaws in prevailing socio-political arguments, but when he provides his own views, I found them just as flawed. Perhaps it would be better if I shared his political views.
  
  I should say that I bought this book because I love data / statistics and I hate it when people manipulate them. Between the title and the author (an economics professor), I was really excited. I expected a book that dissects common perceptions and then backs it up with a collection of scientific studies that demonstrates reality. Perhaps a book in the flavor of Freakonomics, but with a bit more rigor. This book is not that.
  
  In many ways, I feel this book in more philosophical and political than economic.
  
  In considering my review, I think you should know my biases: I'm highly quantitative, I have a PhD in Computer Science and I consider myself economically moderate and socially liberal....more info
• Must read book for just about everybody
  Thomas Sowell's latest work is masterful in it's simplicity, by a combination of clever anecdotes, well-researched and articulated facts and statistics, and brilliance Sowell is able to masterfully explain away false assumptions the vast majority of us have simply taken for granted, and in the same breathe creates a powerful argument for reanalyzing many of the approaches and methods taken to examining many of the current problems of the day. A must read not just for people interested in economics, but for basically everybody to have a better understanding of the workings of the world we live in....more info
• Outstanding
  Sowell's work is great! I would recommend anything Sowell's has written. But this book is especially good. It's the best book I've ever read on economics. I heard about Sowell's work on "Free Markets With Dr. Mike Beitler," a libertarian internet-radio show. I'd reccommend this book along with Beitler's Rational Individualism: A Moral Argument for Limited Government & Capitalism. ...more info
• Classic Sowell. Excellent insight, excellent book.
  Sowell offers invaluable insight into what we know or, more importantly, what we think we know about economics. Things aren't always as they seem and certainly aren't always as we are led to believe.
  
  Anyone who has ever read Sowell (books or columns) knows that he is a talented writer and cuts quickly to the point while methodically supporting it with overwhelming evidence. The larger purpose of this book is to help readers become more critical thinkers rather than mindless consumers of information and ultimately to have the courage to turn inward when seeking solutions.
  
  I particularly enjoyed the Income & Third World chapters. Either alone makes the book well worth your time....more info
• If only economics was required in school...
  So many issues in modern life are underpinned by economic principles in action but unseen by most people; and so many political and social utterances by public figures are devoid of informed economic fundamentals. Once again, Thomas Sowell has brought economics to the intelligent reader. Read Sowell and you can never think the same again. He is one of the most important intellectuals of our times. I highly recommend this book. ...more info
• Economic Facts and Fallacies
  Thomas Sowell is a remarkable writer. He explains economics and politics in such a common sense way. Thomas Sowell's books and articles in [...] are always refreshing to read....more info
• The false use of statistics
  This book is not exactly an easy read but it is absolutely worth reading. In fact anyone who votes should be required to read it before they do so....more info
• Very inspiring and informational.
  Thomas Sowell puts statistical analysis right where it belongs! It can easily be a magical weapon vulnerable for manipulation. The satisfaction I received from this book finally gave credibility to my personal beliefs of massaged statistics. ...more info
• Hmmmm....
  Dr. Sowell is a gifted economist, and this book would be an excellent introduction to Economics for someone who felt that the mainstream is far too market-unfriendly.
  
  Unfortunately, his analysis all too often sets up straw man arguments, which he is able to tear apart with evident ease.
  
  His frame leaves out much though: in discussions of race discrimination, for instance, he seems to totally ignore the issues of "buyer preference" i.e. whether an employer would actually PREFER to hire a white employee, and be prepared to pay such a preference.
  
  An excellent introduction to the concept of markets as applied to contemporary political issues and some widely held misconceptions. However, by omitting issues like externalities etc., "Economic Facts and Fallacies" unfortunately presents a distorted, if compelling read.
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• No Such Thing as Too Much Truth
  Those interested in the pursuit of truth and the dangers of falsehoods masquerading as truth will enjoy this book. Those needing an education in economics as well as those already well-versed in economic reasoning will find this book entertaining and informative. Fans of Sowell's many other outstanding books--this reviewer is one of them--will enjoy this effort. I am sending copies of this to both of my daughters in college. We hear the mantra "critical thinking" frequently. In Economic Facts and Fallacies, Thomas Sowell shows readers how it should be done. If eligibility to vote ever depends on passing a test, I hope the questions are based on the reasoning in this book!...more info
• Absolutely Superb!
  In short, this is a well written, eye-opening, articulate book.
  
  Sowell was able to draw out immense interest for a subject that I had previously viewed as utterly dry and monotonous. After reading this book, I bought his other book - Basic Economics - and several other books on economics by other authors. Sowell is by the far the best and most articulate among the myriad of authors out there.
  
  Sowell tackles several common economic fallacies and provides critical and interesting facts (both historical and statistical) that contradict the common views held by society at large. Some of the topics include income disparity between blacks & whites and female & males, affirmative action, population overcrowding, college attendance & success, and third-world exploitation.
  
  This is a great read and can be easily finished in a couple days. I highly recommend it!...more info
• This guy is dead on.
  Sowell does not worry about being politically correct. This guy cuts to the chase like no one else.
  
  Have your expectations set correctly - this is a business book about economics, it's not a simple read....more info
• Being Misled By Those Wanting To Shape The World To Their Idealized Vision
  I am an unabashed fan of Thomas Sowell and wish that more people would read his books. Sowell is a great observer of contemporary society and has a unique way of peering under its superficiality to show us what lies deeper. While his books are written for the "thinking" person, they are written for everyone. "Economic Facts and Fallacies" like everything else I have read of his does not disappoint.
  
  In "Economic Facts and Fallacies," Sowell focuses on how the use of undefined terms and non-evidenced based assumptions (fallacies) are used to mobilize (& manipulate) people to provide financial, political, and psychological support for policies that do not truly serve society-at-large. The real underlying facts are just too dangerous, threatening those who are intent on shaping society to their idealized vision or to feed their own sense of self.
  
  The use of a terms such as "fair," "social justice," and "equality" are powerful when left undefined. Who is in favor of "unfairness" or "injustice"! These appealing terms mean wholly different things to different individuals and groups and can be used to mobilize support of policies that have untoward consequences. In California's battle over same-sex marriage, Proposition 8, gay activists used these terms to mobilize voters against traditional marriage. The definition of these terms were not challenged and were useful in gaining support from 48% of the voters who saw the issue as a "civil rights" issue...despite the fact that no rights were at stake (see California Supreme Court oral arguments).
  
  After his overview, Sowell moves on to address, in detail, four widespread fallacies: the zero-sum fallacy -economic transactions are a zero-sum process; the fallacy of composition - the belief that what is true of a part is true of the whole; the chess-piece fallacy - pieces can moved around with no harm to the whole; and the open-ended fallacy - no matter how much is done, there will be an open-ended desire to do more.
  
  Sowell succeeds in showing how these fallacies are manifested in our beliefs about rent control, urban planning, environmental controls, traffic congestion, "the" gender pay gap, the gap between the "rich and the poor," and much more. The book is organized around the five subject areas, "Urban Facts and Fallacies," "Male-Female Facts and Fallacies," "Academic Facts and Fallacies," "Racial Facts and Fallacies," and "Third World Facts and Fallacies." The two most insightful for me were the sections on academics and the third world.
  
  "Economic Facts and Fallacies" has been written for the public at-large. You do not need to be economist to be rewarded...and rewarded you will be. The reader will gain a more balanced understanding of our contemporary world, gain a "true" understanding how we are continually misled, be better equipped to challenge those are misleading, and become a more intelligent voter.
  
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• Thought provoking
  Thomas Sowell is direct and to the point. He writes in a way that is easy to understand and very informative. This book should be required reading for everyone before they get a credit card or vote!...more info
• Cultural Economics made easy to understand
  As usual, Dr. Sowell, comments on several current cultural issues and their facts and fallacies with a straitforward style that is well researched and referenced. An economics degree is not needed to understand the topics discussed. He does a nice job of picking apart the biases that underlie the beliefs of the media and politicians....more info
• Required Reading for candidates
  My fantasy of having great wealth is to start a foundation that would give a book a week to every member of Congress, every state legislator, every government policymaker, every opinion columnist and every candidate. This would be the second book we'd give out. First would be Sowell's "Basic Economics." Yes, it might not do any good. I recently cited to a newspaper columnist Sowell's history of what happens to government revenues when you increase the Capital Gains tax (hint: the opposite of what's expected). The columnist told me those were "right wing facts" and he wasn't interested in any facts that supported business. Really. Too many people want to discard any facts that don't support their cherished illusions, preferring comfortable lies, which is why politicians of both parties get elected promising to do things that sound good, but hurt the majority of people they claim to be helping.
  
  Reading Thomas Sowell would at least make it harder for them to do with a straight face. And if every voter read Sowell, it would be much harder for politicians to pander to their uninformed prejudice.
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• Required Reading
  Thomas Sowell once again has the courage to critically examine generally accepted and politically correct social policies. His well researched and documented arguments unmasks these fallacious and ill conceived policies. "Economic Facts and Fallacies" is historically documented and an academic breath of fresh air.
  This book should be required reading for all elected officials on the Municipal, County, State, and Federal level. Social Engineers could use a dose of economic reality as well....more info
• Check for the Appropriateness of Comparisons Before Drawing Conclusions
  Economists are driven crazy by the misleading conclusions that journalists and politicians draw from using numbers in the wrong way. Dr. Sowell uses this book as an opportunity to challenge some of the conclusions that abound concerning cities, male-female incomes, academia, middle-class incomes and size of the group, racial differences, and characteristics of the third world versus the developed countries. It also points out that these errors have consequences in misallocating resources that could be better applied elsewhere.
  
  If you have never sat through a class on what it takes to make a valid comparison, this book is one long essay on that point. That's the meta-message.
  
  The micro-messages relate to suggesting that problems aren't as large and serious as they seem from frequently quoted statistics. I thought that Dr. Sowell was at his best in describing mismeasurements about middle class income in Chapter 5.
  
  In several of the other chapters, especially Chapter 3, it seemed to me like he was over arguing about statistics at the expense of drawing the right conclusion from looking at the context of what is going on. There seemed to be a desire to show virtuosity that appeared to get in the way of answering the question posed in the chapter. Of course, it's absurd to say that if half of an employer's employees are women that management positions should also be 50 percent female. But if the management positions are only held by women 13 percent of the time, it does seem like something else might be going on (including possible discrimination against women). Dr. Sowell would prefer to leave the argument at the apples and oranges stage.
  
  Some of the historical comparisons are interesting (such as how the number of highly educated women in the workforce has changed in the last 110 years). Parents who resent the high tuition their children's colleges charge will resent those charges even more after understanding more how those high prices are reached and maintained.
  
  The book would have been a lot better if it had included a more solid description of what questions we should be asking and answering in each of these areas to understand what's going on. Without that fully developed foundation, even after reading this book many will be at sea in understanding what's going on in society and the world.
  
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• Another outstanding book from Sowell
  This is another outstanding contribution from Dr. Sowell. Clear, concise and accurate economic concepts in everyday language with examples anyone can understand. If it's written by Dr. Sowell, you know it is worthwhile....more info