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Hidden Order: The Economics of Everyday Life, by David D. Friedman
Free Ebook Hidden Order: The Economics of Everyday Life, by David D. Friedman
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Amazon.com Review
To David Friedman (son of Milton Friedman), economics explains everything. In a way, that's an odd thing for him to say: Friedman Jr. has never taken an economics course in his life (by training he's a physicist). Yet he defines economics broadly and uses it as a tool to understand all aspects of human behavior, from selecting a mate to picking a grocery store line to switching lanes in rush-hour traffic jams. If you like the economics-for-everyman approach of such writers as Steven E. Landsburg, then Friedman is for you.
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From Publishers Weekly
Friedman puts the passion back into economics with this unconventional, demanding primer. A professor at Santa Clara University (and son of Nobel laureate economist Milton Friedman), he insists that economics is not primarily about money, but rather about needs, wants, choices, values?an imperfect science predicated on the assumption that people tend to rationally choose the best way to achieve their objectives. Using scores of everyday examples to steer the reader through complex concepts, he discusses consumer preferences, street crime, lotteries, plea bargains in trials, sharecropping, financial speculation, political campaign spending and much else. He demystifies international trade (e.g., there's nothing inherently bad about a trade deficit) and deconstructs the economy as an interacting system all of whose elements are interdependent. A rewarding text for serious readers. Translation and U.K. rights: Writer's Representatives. Copyright 1996 Reed Business Information, Inc.
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Product details
Hardcover: 352 pages
Publisher: Harperbusiness; 1st edition (August 1, 1996)
Language: English
ISBN-10: 0887307507
ISBN-13: 978-0887307508
Product Dimensions:
6.8 x 1 x 9.8 inches
Shipping Weight: 1.3 pounds
Average Customer Review:
3.6 out of 5 stars
37 customer reviews
Amazon Best Sellers Rank:
#446,262 in Books (See Top 100 in Books)
Despite what I am about to say about the downsides of Friedman's approach, this is a book well worth reading. It's just a bit too sure that it has revealed all we need to know about motivations behind behaviors. On that point, I'm unconvinced. More on that in a moment.As noted by most reviewers, he does a credible job in the first part of the book explaining the basics of economics. The graphs are a bit difficult if it is the reader's first exposure to economics, but I found his verbal explanations to be clear and compelling.He then goes on to apply this knowledge to a panoply of real world situations. His discussions on taxation, pollution, and product liability are quite thought provoking. If the reader isn't rethinking some cherished beliefs by this point, then he is either is already a U of C economics diehard or didn't pay enough attention. Capital stuff!I wish he had left out the very last section of the book. There he applies the same rationalistic approach to behaviors such as gift giving or punishing drug users. He fails to satisfy in both cases.He's largely puzzled why people choose to give gifts to people they like rather than money. He offers 'paternalism' as a possible explanation, but since paternalism's rewards seemingly can't be measured in terms of value, he gives up the topic, moves on, and leaves the reader hanging. Well developed theories of the basis of social power from psychology offer more well developed and satisfying explanations of gift giving and are also borne out in well run experiments.Similarly, it would seem that his beliefs applied to the question of drugs would make legalization the most rationale path. Surprisingly, he only wants to discuss the punishment alternatives for hard drug usage because he assumes that all hard drug users steal to support their habits. This then enables him to analyze the cost to society which then enables him to examine a range of punishment alternatives. That's fine as far as it goes, but it begs the discussion for the vast majority of illegal drug users who stick to so-called soft drugs. It also leaves unspoken whether all illegal drugs ought to be legal for people wealthy enough not have to steal to support their illegal purchases.There's a whole range of widespread human behaviors which cannot be explained satisfactorily by this type of analysis. Using hard drugs, participating in extremely dangerous sports, and masochism come to mind.So the 'uber-explanation' of all human behaviors in the last section of the book takes away substantively from the rest of the book. Since this train of thought in the first 80% of the book has lept from economics to the theory of law over the last 25 years via scholars such as Posner and Coase, it now influences much public policy discussion and judicial thinking today. For that reason alone, this book is worth reading. This is not 'just about economics' just as it is not 'all you need to know about what motivates human behavior'.
As usual, D. Friedman surprises amateur and profesional economists alike, with insightful and interesting applications of economic principles to situations that conventionally non-economical. Everyone will learn from it.
Explains a lot of economic principles in a generally easy to read way with real life examples. For those who've never studied economics this is a good introduction which is definitely not dry like some textbooks. The book blurb in the dustjacket is however more enthusiastic than the book deserves, as is the case with book blurbs.
The book is excellent if you are interested in economics. It arrived quickly as described.
Makes the complexity of economics accessible without calculus. Reread about once a year to remind yourself how things really work.
Economics for the laypersons has become the topic "du jour." This book written nearly a decade ago before economics became hot far surpasses its successors such as "Freakonomics." David Friedman does not dumb down economics like the others. Other reviewers who had at least a rudimentary interest in economics really enjoyed it. A few others who confused economics with their own political views predictably got frustrated with it. Economics is not always intuitive. As a result, several reviewers thought the author made mistakes regarding the graphs on page 29, or the example on housing on page 35. I reread these passages carefully. The author is accurate, it is just that these economics concepts are counter-intuitive. And, contrary to Steve Levitt in "Freakonomics" David Friedman did not shy away from tackling the inherent complexity in economics.The book gives you a good foundation in both macro and microeconomics. Very early in the book he introduces and graphs demand and supply curves, marginal costs and revenue curves, utility functions. His coverage of international trade, taxation, subsidies, rent control is excellent. Along the way, you will also learn about investment theory and corporate finance. Friedman explains how the Efficient Market Hypothesis applies not only to stocks but freeway traffic and supermarket lines.Friedman also gives full credit and fleshes out the ideas from the founders of modern economics, including Adam Smith, David Ricardo, and Alfred Marshall. This is unlike Steve Levitt in "Freakonomics" who truly believed he was the first economist to tackle every day issues forgetting that economics is the science of understanding everyday behavior to begin with.For further reading, if you want to pursue an econ refresher I recommend an actual textbook: "Principles of Economics" by Gregory Mankiw. This is a textbook with a hip and humorous attitude. The Economist, the British magazine, raved about it when it came out. I also recommend Gary Becker's "The Economics of Life", and Steve Landsburg's "The Armchair Economist."
A really interesting read explaining economic topics with examples without dumbing it down. I appreciated the inclusion of graphs and the accompanying explanations
Opens your eyes to so many topics and subjects involving, money finance and economics in general that most people would otherwise be clueless about.This book was actually purchased for use as a text book but I've enjoyed it so much I've decided to keep it for myself (rather than resell it to future students) and read it cover to cover (since in my basic economics class not all chapters were covered).
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