Economics for Beginners

I figure that since a good portion of my writing on this blog is focused on exposing the economic fallacies espoused by politicians, columnists, the voting public, and pro athletes, I might as well provide some way for the layperson to begin a journey into the great world of economics instead of remaining in a state of "rational ignorance."

My first inclination would be to recommend enrolling in the economics program at George Mason University and taking the essential courses with Profs. Donald Boudreaux, Thomas Rustici, Peter Boettke, Bryan Caplan, Pete Leeson, and, of course, Walter E. Williams. My experience over the past three-and-a-half years in this program has been a challenging, stimulating, and at times mystifying experience. These remarkable professors have been known to convert even the most anti-economics students -- particularly global affairs, sociology, and political science majors -- into full-fledged economics nerds. My journey with these professors has almost been like watching Mythbusters on a daily basis; having conventional wisdom broken down before my eyes and the truth laid out clearly with actual evidence and a strong appeal to basic reason and logic (something which the field of sociology cannot boast).

Unfortunately, not everyone can just up and go to Fairfax, Virginia and spend four to eight years studying economics there, and so a suggested beginners' reading list will suffice. I'd like to preface this list with an appropriate quote from the late Murray Rothbard:

It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a "dismal science." But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.

As such, here are, in my opinion, the five essential books for beginning a journey towards a greater understanding of economics:

Ayn Rand - Atlas Shrugged
Though not explicitly an economics text, Rand's magnum opus represents the most economically literate piece of modern fiction. Through her epic story of a country's great entrepreneurs and innovators revolting against political parasites following a series of seriously detrimental regulations, Rand conveys the most fundamental of economic laws in a convincing fashion. While neither a textbook nor a work of non-fiction, this is probably a good place to start, as it presents economics in story form without all the technical jargon and theorization.

Henry Hazlitt - Economics in One Lesson
As the original edition's subtitle claims, this certainly is "the shortest and surest way to understand basic economics." Widely considered the most effective primer on economic principles, Hazlitt's terse essays swiftly expose the many economic fallacies constantly invoked by politicians and intellectuals alike. Illuminated by simple and concise examples, his essays debunk countless economic myths and open the fledgling economist's eyes to the concepts of, among others, unintended consequences and the importance of incentives [hence this blog's name] -- essential tools for dismantling the many illogical and oftentimes harmful economic policies brought before Congress.

Frédéric Bastiat - Economic Sophisms
With his delightful wit, Bastiat's bitingly sarcastic essays have come to be recognized as some of the most persuasive and condemning refutations of the fallacies of economic protectionism -- fallacies that continue to flourish in modern public thought. His most famous essay brilliantly exposes the backwardness of protectionism through a satirical petition from French candlemakers to their government pleading for protection from the unfair competition of a foreign power: the Sun.

James Gwartney, Richard Stroup, & Dwight Lee - Common Sense Economics: What Everyone Should Know About Wealth and Prosperity
Neatly organized into list-based chapters, this readable economic primer offers a modern update to Hazlitt's lessons. With minimal jargon and without oversimplifying the key insights, the three authors present the basics of economic theory, international trade, and the effects of government policy on economic behavior in a fun and engaging manner. Aimed at both the expert and the layperson, this book skillfully bridges the gap between the complicated theoretics and the simple nature of basic economics in a language understandable to all.

Johan Norberg - In Defense of Global Capitalism
Norberg grew up a left-anarchist in democratic socialist Sweden, but made his conversion to libertarianism after finding himself unable to sympathize with the collectivist mentality of the Left. A gifted writer, Norberg presents a stunningly convincing case in favor of globalization as the best means to bringing wealth and individual liberty to the rest of the world. His arguments are brilliant refutations of the most widely touted anti-globalization theories, and provide a lucid source for understanding the economic concepts that are often misunderstood or entirely ignored in the globalism debate.


[Note that I specifically did not choose any of the seminal works of F.A. Hayek or Ludwig von Mises, as this list is specifically meant for beginners. While The Road to Serfdom and Human Action are undoubtedly important for the study of economics, they might be a bit intimidating for those first beginning to explore economics at the basic level.]