100 books like Economic Sophisms and "What Is Seen and What Is Not Seen"

Even though Adam Smith is often said to be the father of all that is good or bad about capitalism very few people have read his famous Wealth of Nations. Why? Well, 1) they think they already know what’s in it: no government intervention in the economy, thank you. 2) It is two volumes. 3) It must be very dreary because it is about economics, and 4) they are not good at economics or math.  

But read it for yourself, and you will find that it is readable, nuanced, and you can skip the bits that you can’t make out, enjoy the examples, and decide for yourself what he actually argued and whether you agree with it or not.

Capitalism and Freedom is the greatest exposition of the consequential case for libertarianism. In other words, Milton Friedman’s case for libertarian policies rests not on moral assumptions or “natural” rights but on showing that capitalism is important because it has positive consequences – it enables human prosperity and flourishment.

Perhaps as importantly, Capitalism and Freedom shows that economic freedom is a necessary condition not just for economic prosperity but for personal and political freedom. Thus, free markets are not only compatible with democracy (contra what many people claim), but a necessary condition for protecting democracy and personal freedoms.

This book’s outlook is probably the closest to the one articulated in my book. It is also the most recent one on the list, making it an easy read.

The classic exposition of the idea that central governmental economic planning will inevitably be wasteful and tyrannical. Hayek today is caricatured by both right and left, but he is not the minimal state absolutist that both sides often take him to be. Hayek thinks that the way to attack poverty is not redistribution – there isn’t yet enough wealth in existence to give everyone a decent life – but the opportunities created by free markets. Another impetus for my own work was reading this book and discovering that I agreed with him much more than I had expected to. 

Locke’s Second Treatise on Government is the first book to present a coherent liberal theory of the State. Many of its core ideas are now common-sense: that the legitimate end of government is to preserve and enlarge the freedom of its subjects; that sovereigns should be held accountable to the law; and that individuals have a natural right to life, liberty, and property even in the absence of government.

This is a short and readable book that reminds us how much the liberal tradition initiated by Locke is, at least rhetorically, embedded in much of contemporary discourse on democracy and politics.

This book is also of paramount importance to libertarians because it presents one of the first articulated arguments for private property as a means to create wealth.

A classic written on the eve of the Great Depression on the political culture of the British settlers in the great south land, with its commitment to egalitarianism, to bureaucratic process, and to protection all round, with restricted immigration and protective tariffs building ring-fences around ordinary workers’ standard of living. Hancock does not wholly approve of the result, which he sees as encouraging mediocre conformity. Written with verve and a sardonic eye.

Mercantilism is the classical historical discussion of the early expression of economic nationalism when it was a form of protectionism.

It is essential background reading for anyone interested in economic history. I recommend it among other things because without this background one cannot appreciate the position of Adam Smith in the Wealth of Nations, usually identified with the criticism of mercantilism, which he nevertheless defends when it advances British national interest.

Drawing on extensive historical research, economist Ha-Joon Chang shows that today’s wealthiest nations became rich not by following the advice they have long given to poorer nations — embrace free and open markets with minimal state involvement — but by doing precisely the opposite: embracing policies of protectionism and significant state intervention. In admirably clear prose, Chang exposes the hypocrisy of the world’s richest nations and lays out a more promising path of development for the poorer countries of the world. 

Hahnel’s work should be more well known. A professor of economics who understands the neoclassical approach inside out, he has spent his career not only critiquing mainstream economics but developing rich alternatives, including a sophisticated economic vision that aims to avoid the pitfalls of both free markets and state planning. I’ve chosen The ABCs of Political Economy as it’s a wonderful introduction to the area, offering a broad scope and a sharp critique of orthodox approaches to the economy.

The Wealth of Nations is the foundational text of modern economics, reflecting – contrary to the common notion – the clearly national consciousness of its author and demonstrating that modern economic imagination (and activity) is a product of nationalism.

Its nationalist inspiration is the main reason I recommend reading it, for the commonplace interpretations of this classic miss this most interesting aspect of the work. In addition, it is a delightful text. 

Frank explains why Darwin is a better guide than Adam Smith’s Wealth of Nations to the problems the economy raises for almost everyone. The most important market and the only market where almost everyone is a seller instead of a buyer is the labor market. Yet it is the one that Adam Smith got almost completely wrong and Charles Darwin got almost completely right. Frank shows us how the Darwinian process of the labor market makes employers rich at the expense of workers, and how they stitched their advantage into the “Right to Work” (at lower wages) laws.