Basic Economics

I just finished reading Thomas Sowell's book, "Basic Economics: A Citizen's Guide to the Economy." This is an excellent read for someone who wants to understand basic economic principles without all the mathematics that usually accompanies such a book. Sowell states that his purpose for writing this book was: 1) to show certain economic principles that can be applied to any economy and 2) to look at economic policies and systems in terms of the incentives they create. He does an excellent job of this by giving the reader a basic understanding of prices and markets, commerce and industry, and work and pay. Furthermore he educates the reader about national and international economics.

The chapter that most interested me was chapter 5: "The Rise and Fall of Businesses." Sowell says that most of the businesses we hear about are those who have succeeded on a large scale. He mentions a few companies, one of which is General Motors. But what interested me most was this statement, "industry and commerce are not static things, but dynamic processes, in which individual companies and whole industries rise and fall, as a result of relentless competition under changing conditions."

After reading this book you will understand why the automobile industry needs to adapt to changing conditions without the help of the government. Any why it is best for you and me if it is left alone.