The Undercover Economist, by Tim Harford

The Undercover Economist by Tim Harford

This is a terrific book. It's so easy for people to bemoan the cost of things from gasoline to hotel rooms to a cup of coffee at Starbucks, but few ever pause to ask themselves: why are things priced this way? Does a conspiracy theory make any sense? How does a market-based economy operate? Is government intervention necessarily the best solution? Taking a step back and looking at the bigger picture, Harford also brings up questions such as, why are rich countries rich and poor countries poor? How is it that some countries have managed to change their situation dramatically in a short time while others haven't? What is the most efficient way to deal with pollution? What does fairness mean in an economic sense?

I have never taken an econ course (thought they were bird courses, a waste of my tuition fee and my time), but I had no difficulty in understanding every concept described in the book. It's so well written and presented that anyone who is willing to apply logic, not emotions, will find it a joy to read. Of course, when it comes to our wallets or human lives, how many of us can keep our emotions completely out of it?