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The Armchair Economist: Economics and Everyday Life, by Steven E. Landsburg
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The extensively revised and updated edition of Steven Landsburg’s hugely popular book, The Armchair Economist—“a delightful compendium of quotidian examples illustrating important economic and financial theories” (The Journal of Finance).
In this revised and updated edition of Steven Landsburg’s hugely popular book, he applies economic theory to today’s most pressing concerns, answering a diverse range of daring questions, such as:
Why are seat belts deadly?
Why do celebrity endorsements sell products?
Why are failed executives paid so much?
Who should bear the cost of oil spills?
Do government deficits matter?
How is workplace safety bad for workers?
What’s wrong with the local foods movement?
Which rich people can’t be taxed?
Why is rising unemployment sometimes good?
Why do women pay more at the dry cleaner?
Why is life full of disappointments?
Whether these are nagging questions you’ve always had, or ones you never even thought to ask, this new edition of The Armchair Economist turns the eternal ideas of economic theory into concrete answers that you can use to navigate the challenges of contemporary life.
- Sales Rank: #61821 in Books
- Brand: Free Press
- Published on: 2012-05-01
- Released on: 2012-05-01
- Original language: English
- Number of items: 1
- Dimensions: 8.44" h x .90" w x 5.50" l, .60 pounds
- Binding: Paperback
- 336 pages
- Free Press
From Publishers Weekly
Landsburg demystifies the economics of everyday behavior in these diverting if not always persuasive essays. Why don't promoters of sell-out rock concerts raise the advance ticket price? Because, suggests the author, promoters want the good will of teenage audiences who will buy lots of rock paraphernalia. Why are executives' salaries so high? One reason, opines Landsburg, is that stockholders expect managers to take risks, and well-heeled executives are more likely to do so. Associate professor of economics at the University of Rochester in New York, Landsburg applies his counter-intuitive analyses, with mixed results, to everything from taxes, auctions, baseball and the high price of movie theater popcorn to government inefficiency, the death penalty, environmentalism (which he attacks as a dogmatic, coercive ideology) and NAFTA.
Copyright 1993 Reed Business Information, Inc.
From Library Journal
Landsburg (economics, Univ. of Rochester) demonstrates the economist's way of thinking about everyday occurrences. The result is a compilation of questions ranging from why popcorn costs so much at movie theaters and why rock concerts sell out to why laws against polygamy are detrimental to women. Many of the issues raised are controversial and even somewhat humorous, but they are clearly explained only from an economic perspective as opposed to other dynamics of human behavior. There are also clear explanations of the misconceptions about unemployment rates, measures of inflation, and interest rates. The book is not a textbook but shows how one economist solves puzzling questions that occur in daily living. Recommended for general collections.
- Jane M. Kathman, Coll. of St. Benedict, St. Joseph, Minn.
Copyright 1993 Reed Business Information, Inc.
From Kirkus Reviews
An economics professor's sometimes charming, sometimes glib, always counterintuitive guide to evaluating the small anomalies of daily life in a free-market society. In a series of interchangeable chapters, Landsburg (University of Rochester) asks questions like: Why do laws mandating use of seat belts increase the rate of traffic accidents, as statistics show they do? Because, he says, drivers have been given an incentive to drive more quickly and less carefully by being made to feel protected. In the service of what he calls efficient markets, Landsburg argues that wheat farmers, say, ought to be forced to pay damages done to their crops by sparks thrown off from railroad trains, since such damages can be borne more cheaply by farmers than by the railroad companies that are at fault. When analyzing the costs and benefits of legalizing drugs, he admonishes that increased tax revenues from a heretofore untaxable criminal activity are a neutral item; transfer of wealth from individuals to government is never equivalent to the creation of new wealth and may even be a societal drain. In general, Landsburg cheerily points out, economists value efficiency rather than justice, market solutions over legislated compromises, consumption over saving, and the creation of wealth above all else; these principles secretly drive the profession's public analyses of criminal penalties, tax policy, environmental legislation, and the ultimate good of market- based free trade. For all his cleverness, Landsburg never seriously questions the ``neutral'' assumptions of the dismal science--a fact that considerably decreases the value of his book. -- Copyright ©1993, Kirkus Associates, LP. All rights reserved.
Most helpful customer reviews
0 of 0 people found the following review helpful.
Economics taken to the next-level
By SHAIBU I.
I nearly returned the book the very moment I received it after purchase and flipping through the pages. I thought I had the wrong book because it was part of the set of textbooks my Professor in Economics in Agribusiness recommended and as an economic textbook, the first thing I expected to see was the usual demand and supply curves and equations and because they were conspicuously missing I thought I had the wrong book.
Indeed it was worth recommending and reading. This is a book that took Economics to the next level; making effort to present Economic theories to the non-economists. It touches on real life issues and written in plain and clear English without any economic jargon which may be difficult to read and understand by non-economists.
The writer made great efforts to argue and dispute several misconceptions in life by applying the realities and economic principles. Some of arguments and concerns on some issues were quite controversial and appear to be based on value judgements. As a result, one may not fully agree with them based on one's values; but in general, it was an interesting reading.
I took special interest on the Environmentalist discussion on chapter 24. In as much as it sounded quite controversial to read because of strong advocacy for environment and conservationism (which I am a member), I saw the argument to be a great and interesting one. Indeed "if environmentalists were as passionate as they claim to be about conserving resources for future generations, I would expect more of them to oppose the taxation of capital income, the social security system and other policies that encourage consumption in the present". I found this interesting because truly, sometimes some advocacy concepts only take a parochial and narrow view on issues and that in total effect end up not education the masses well.
This not withstanding, there were other sections where issues were disputed but the author did not do much job to let the alternatives be very clear enough. An example is 'why popcorn cost more at the movies' on chapter 16. In this section, the author could not make it clear to my understanding what alternative approach could maximize profit for both popcorn and movie ticket sales.
In general however, this is a great book to read.
0 of 0 people found the following review helpful.
Insightful and catchy
By Jessica Roberts
I didn't buy this book based on a review I had read or heard but as a prescribed reading for my graduate class in economics. I expected this book to be boring and drab like most, but I was pleasantly surprised. What I find most captivating about this book is the fact that the writer uses everyday experiences and our individual preferences to shed light on basic economic principles that would otherwise have been difficult to comprehend. From the first to the last page this book is filled with thought provoking and nagging questions that I have never dared to ask myself.It isn't straightforward read but intricate in a way that it tasks your mind.
The Writer does not push his opinions on the reader but leaves you with a set of possibilities and solutions to choose from by analyzing every subject. For example in Chapter 11, he looks at the subject of deficits. I have never stopped to think twice about making a payment at the store, if I have money in my account or on my credit card I would just use any of the two methods without as much as caring about the costs I would incur by choosing either option. Landsburg has one powerful weapon-analysis, and he utilizes it in a way that is non threatening but very helpful to his readers.
After reading this book, not only do I understand certain topics better but I also know that every choice I make comes with a cost and benefit . At the end of the day I wouldn't want to lose more than I gained. I will definitely read this book again after my class is over, its like a book of life in economics
0 of 0 people found the following review helpful.
Great book!
By Stephany Flores
I had to read this book for one of my course in Graduate school and I have to admit that it end up being more entertaining than what I expected. A very good reading that illustrates how economists think and tries to teach some basic economic principles through simple stories.
The book does a really good job opening the eyes into new and valid points that are usually ignored when drawing conclusions. The chapter “How statistics lie” is a really good example of this. One of my favorite chapters “Iowa Crop Car” (The shorter in the book) gives a very simple and easy to understand explanation about trade theory.
One of the few things I don’t appreciate about the book is that sometimes asks a lot of questions and doesn't always provide the answers. (But maybe that’s just and opportunity to trigger the reader's critical thinking)
The last chapter of the book is a bit controversial, and will definitely not be enjoyed if you are an environmentalist. It’s hard to read it without letting your own preferences bias your opinion, however the author makes a very reasonable point stating that protecting the environment is a matter of preferences and involves trade-offs, that should not be overvalued in comparison to others peoples preferences.
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