Tuesday, March 29, 2005

A Book You Should Read

For all of you planning to buy a franchise, I think Thomas Sowell's book, "Basic Economics" should be Required Reading. He defines economics as the study of the use of scarce resources which have alternative uses.

Sowell explains that free market economies generally result in the best opportunities for the consumer as well as the most efficient use of resources. For Americans, this is great news–since we have the freest trading in the world and deregulation is making it even more open to trade with few restrictions.

He explains how most of the economy is not a zero-sum game; how exporting jobs brings more wealth to America thru increased stock prices and more jobs(often higher paying jobs) in industries where we excel--like banking, science, medicine & pharmaceuticals; and how a trade deficit is not a bad thing as most of us have been programmed to believe.

Why are homeless people sleeping on the sidewalks of New York City in the winter when abandoned apartment buildings in the city have four times as many dwelling units as there are homeless people in the city? Why are people hungry in Moscow when there are vast amounts of some of the richest farmland on the continent of Europe within easy driving distance?

Sowell addresses price controls and subsidies in detail, both as important political issues in their own right and to demonstrate how prices work by showing what happens when they are constrained. He covers a broad range of topics, from scarcity, the balance of trade, and price controls to minimum-wage laws, competition, profits and losses, and the role of government.

Sowell is clear & concise about a topic most of us don't fully understand but need to in order to vote more competently and manage our businesses and family finances.

Buy it now at Amazon: