Thomas Sowell Quotes

prices are not costs. Prices are what pay for costs.

The term “liberal” originally referred politically to those who wanted to liberate people — mainly from the oppressive power of government. That is what it still means in various European countries or in Australia and New Zealand. It is the American meaning that is unusual: People who want to increase the power of government, in order to accomplish various social goals.

Where beliefs are not checked against facts, but instead facts must meet the test of consonance with the prevailing vision, we are in the process of sealing ourselves off from feedback from reality. Heedless of the past, we are flying blind into the future.

Nothing could be more jolting and discordant with the vision of today's intellectuals than the fact that it was businessmen, devout religious leaders and Western imperialists who together destroyed slavery around the world. And if it doesn't fit their vision, it is the same to them as if it never happened.

Ours may become the first civilization destroyed, not by the power of our enemies, but by the ignorance of our teachers and the dangerous nonsense they are teaching our children. In an age of artificial intelligence, they are creating artificial stupidity.

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.

The cavemen had the same natural resources at their disposal as we have today, and the difference between their standard of living and ours is a difference between the knowledge they could bring to bear on those resources and the knowledge used today.

While “greed” is one of the most popular — and most fallacious — explanations of the very high salaries of corporate executives, when your salary depends on what other people are willing to pay you, you can be the greediest person on earth and that will not raise your pay in the slightest. Any serious explanation of corporate executives’ salaries must be based on the reasons for those salaries being offered, not the reasons why the recipients desire them.

The purpose of education is to give the student the intellectual tools to analyze, whether verbally or numerically, and to reach conclusions based on logic and evidence.

Systemic processes tend to reward people for making decisions that turn out to be right — creating great resentment among the anointed, who feel themselves entitled to rewards for being articulate, politically active, and morally fervent.

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.

Justice at all costs' is not justice.

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

Failure is part of the natural cycle of business. Companies are born, companies die, capitalism moves forward. Fortunemagazine{115}

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 th