“Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount—and, if it is not, that worker is unlikely to be employed.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

“Economics is a study of cause-and-effect relationships in an economy. It's purpose is to discern the consequences of various ways of allocating resources which have alternative uses. It has nothing to say about philosophy or values, anymore than it has to say about music or literature.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

“As an entrepreneur in India put it: 'Indians have learned from painful experience that the state does not work on behalf of the people. More often than not, it works on behalf of itself.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

“Economics is more than just a way to see patterns or to unravel puzzling anomalies. Its fundamental concern is with the material standard of living of society as a whole and how that is affected by particular decisions made by individuals and institutions. One of the ways of doing this is to look at economic policies and economic systems in terms of the incentives they create, rather than simply the goals they pursue. This means that consequences matter more than intentions—and not just the immediate consequences, but also the longer run repercussions of decisions, policies, and institutions.”
― Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy

“Seldom do people think things through foolishly. More often, they do not bother to think things through at all, so that even brainy individuals can reach untenable conclusions because their brainpower means little if it is not deployed and applied.”
― Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy

“Perhaps the most important thing about risk is its inescapability. Particular individuals, groups, or institutions may be sheltered from risk - but only at the cost of having someone else bear that risk. For a society as a whole, there is no someone else.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

“A society in which such decisions can only be made by males has thrown away half of its knowledge, talents, and insights.”
― Thomas Sowell, Basic Economics

“prices are not costs. Prices are what pay for costs.”
― Thomas Sowell, Basic Economics

“Nada es más fácil que tener buenas intenciones. Pero cuando no se entiende cómo funciona una economía, las buenas intenciones pueden llevar a consecuencias desastrosas”
― Thomas Sowell, Economía básica: Un manual de economía escrito desde el sentido común

“Failure is part of the natural cycle of business. Companies are born, companies die, capitalism moves forward. Fortunemagazine{115}”
― Thomas Sowell, Basic Economics

“Misconceptions of business are almost inevitable in a society where most people have neither studied nor run businesses. In a society where most people are employees and consumers, it is easy to think of businesses as “them” – as impersonal organizations, whose internal operations are largely unknown and whose sums of money may sometimes be so huge as to be unfathomable.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

“People who want special taxes or subsidies for particular things seem not to understand that what they are really asking for is for the prices to misstate the relative scarcities of things and the relative values that the users of these things put on them. One”
― Thomas Sowell, Basic Economics

“In the United States, government regulations are estimated to cost about $7,800 per employee in large businesses and about $10,600 per employee in small businesses.{662} Among other things, this suggests that the existence of numerous government regulations tends to give competitive advantages to big business, since there are apparently economies of scale in complying with these regulations.”
― Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy

“Many have blamed the gasoline shortages and long lines at filling stations in 1973 on the Arab Oil embargo of that year. However, the shortages and long lines began months before the Arab oil embargo, right after price controls were imposed.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

“The history of black workers in the United States illustrates the point. As already noted, from the late nineteenth-century on through the middle of the twentieth century, the labor force participation rate of American blacks was slightly higher than that of American whites. In other words, blacks were just as employable at the wages they received as whites were at their very different wages. The minimum wage law changed that. Before federal minimum wage laws were instituted in the 1930s, the black unemployment rate was slightly lower than the white unemployment rate in 1930. But then followed the Davis-Bacon Act of 1931, the National Industrial Recovery Act of 1933 and the Fair Labor Standards Act of 1938—all of which imposed government-mandated minimum wages, either on a particular sector or more broadly. The National Labor Relations Act of 1935, which promoted unionization, also tended to price black workers out of jobs, in addition to union rules that kept blacks from jobs by barring them from union membership. The National Industrial Recovery Act raised wage rates in the Southern textile industry by 70 percent in just five months and its impact nationwide was estimated to have cost blacks half a million jobs. While this Act was later declared unconstitutional by the Supreme Court, the Fair Labor Standards Act of 1938 was upheld by the High Court and became the major force establishing a national minimum wage. As already noted, the inflation of the 1940s largely nullified the effect of the Fair Labor Standards Act, until it was amended in 1950 to raise minimum wages to a level that would have some actual effect on current wages. By 1954, black unemployment rates were double those of whites and have continued to be at that level or higher. Those particularly hard hit by the resulting unemployment have been black teenage males. Even though 1949—the year before a series of minimum wage escalations began—was a recession year, black teenage male unemployment that year was lower than it was to be at any time during the later boom years of the 1960s. The wide gap between the unemployment rates of black and white teenagers dates from the escalation of the minimum wage and the spread of its coverage in the 1950s. The usual explanations of high unemployment among black teenagers—inexperience, less education, lack of skills, racism—cannot explain their rising unemployment, since all these things were worse during the earlier period when black teenage unemployment was much lower. Taking the more normal year of 1948 as a basis for comparison, black male teenage unemployment then was less than half of what it would be at any time during the decade of the 1960s and less than one-third of what it would be in the 1970s. Unemployment among 16 and 17-year-old black males was no higher than among white males of the same age in 1948. It was only after a series of minimum wage escalations began that black male teenage unemployment not only skyrocketed but became more than double the unemployment rates among white male teenagers. In the early twenty-first century, the unemployment rate for black teenagers exceeded 30 percent. After the American economy turned down in the wake of the housing and financial crises, unemployment among black teenagers reached 40 percent.”
― Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy

“In short, honesty is more than a moral principle. It is also a major economic factor. While government can do little to create honesty directly, in various ways it can indirectly either support or undermine the traditions on which honest conduct is based. This it can do by what it teaches in its schools, by the examples set by public officials, or by the laws that it passes. These laws can create incentives toward either moral or immoral conduct. Where laws create a situation in which the only way to avoid ruinous losses is by violating the law, the government is in effect reducing public respect for laws in general, as well as rewarding specific dishonest behavior.”
― Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy

“Although Adam Smith is today often regarded as a “conservative” figure, he in fact attacked some of the dominant ideas and interests of his own times. Moreover, the idea of a spontaneously self-equilibrating system—the market economy—first developed by the Physiocrats and later made part of the tradition of classical economics by Adam Smith, represented a radically new departure, not only in analysis of social causation but also in seeing a reduced role for political, intellectual, or other elites as guides or controllers of the masses.”
― Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy

“The fundamental confusion that makes income bracket data and individual income data seem mutually contradictory is the implicit assumption that people in particular income brackets at a given time are an enduring “class” at that level. If that were true, then trends over time in comparisons between income brackets would be the same as trends over time between individuals. Because that is not the case, the two sets of statistics lead not only to different conclusions but even opposite conclusions.”
― Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy

“Treating the causes of higher prices and higher interest rates in low-income neighborhoods as being personal greed or exploitation, and trying to remedy it by imposing price controls and interest rate ceilings only ensures that even less will be supplied to people living in low-income neighborhoods thereafter.”
― Thomas Sowell, Basic Economics

“Contrast societies with such restricted sources of decision-making ability with a society in which a farm boy who walked eight miles to Detroit to look for a job could end up creating the Ford Motor Company and changing the face of America with mass-produced automobiles—or a society in which a couple of young bicycle mechanics could invent the airplane and change the whole world. Neither a lack of pedigree, nor a lack of academic degrees, nor even a lack of money could stop ideas that worked, for investment money is always looking for a winner to back and cash in on.”
― Thomas Sowell, Basic Economics

“One of the ways of understanding the consequences of economic decisions is to look at them in terms of the incentives they create, rather than simply the goals they pursue.”
― Thomas Sowell, Basic Economics

“The difference is that one system involves each individual making choices for himself or herself, while the other system involves a small number of people making choices for millions of others.”
― Thomas Sowell, Basic Economics

“Among the greatest external costs imposed in a society can be those imposed politically by legislators and officials who pay no costs whatever, while imposing billions of dollars in costs on others, in order to respond to political pressures from advocates of particular interests or ideologies.”
― Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy

“Although the word 'economy' may bring the term money to the minds of many, the truth is that for the whole of society money is nothing more than an artificial instrument that allows real things to be done, otherwise , the government could make us all rich simply by printing more bills. It is not money but the volume of goods and services that determines whether a country is poor or prosperous.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

“In short, rent control reduces the rate of housing turnover.”
― Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy

“If low-wage employers make workers worse off than they would be otherwise, then it is hard to imagine why workers would work for them. “Because they have no alternative” may be one answer. But that answer implies that low-wage employers provide a better option than these particular workers have otherwise—and so are not making them worse off. Thus the argument against low-wage employers making workers worse off is internally self-contradictory. What would make low-wage workers worse off would be foreclosing one of their already limited options. This is especially harmful when considering that low-wage workers are often young, entry-level workers for whom work experience can be more valuable in the long run than the immediate pay itself.”
― Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy

“Just as price fluctuations allocate scarce resources which have alternative uses, price controls which limit those fluctuations reduce the incentives for individuals to limit their own use of scarce resources desired by others.”
― Thomas Sowell, Basic Economics: A Common Sense Guide to the Economy

“In the complexities of real life, seldom is any argument right 100 percent of the time or wrong 100 percent of the time.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

“The fact that work is cheaper in Dubai than in Japan is not just a fluke. Work is more productive in richer countries. That is one of the reasons these countries are generally more prosperous. Selling used equipment from rich countries to poor countries can be an efficient way to handle the situation for both types of countries.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy

“One of the big differences between economics and politics is that politicians are not forced to pay attention to the consequences that will come after the next elections. An elected official, whose policies keep the electorate happy until Election Day, has a good chance of being reelected, even if those policies have disastrous consequences for years to come. There is no 'present value' for making political decision makers today take into account future consequences, when those consequences will come after the elections.”
― Thomas Sowell, Basic Economics: A Citizen's Guide to the Economy