What qualifies a book as “popular economics”? First and foremost, it should be free from the labyrinthine mathematics and complex diagrams that often accompany academic economics. Instead, these works should invite the lay reader in with accessible prose.
Secondly, while media attention can suggest a book’s merit, I’ve opted for a more inclusive approach to avoid bias against conservative authors. Lastly, there’s an overwhelming number of popular business and stock market books that could easily populate the “Avoid” list—yet I’ll spare you that particular chronicle.
Books to Read
“Understanding how markets function is not just for economists; it’s for everyone.”
Understanding how markets function is not just for economists; it’s for everyone. A delightful entry point into this realm is The Price of Everything by Russ Roberts, which is both engaging and enlightening.
For a broader overview, I recommend Hidden Order: The Economics of Everyday Life by David Friedman. This book encourages readers to adopt an economist’s mindset, illustrated cleverly by his analogy of producing cars by growing wheat, shipping it to Japan, and then receiving cars in return. As a worthy alternative, consider Basic Economics by Thomas Sowell.
Turning our gaze to macroeconomics—the study of economic cycles, unemployment, and inflation—it’s a contentious field rife with competing theories. Here, I endorse Macroeconomic Patterns and Stories by Edward Leamer. In my previous writings from 2020, I noted:
- This work serves as an excellent primer on the essential data of macroeconomics—its collection and interpretation. While it’s framed as a textbook for business students, its insights are invaluable for economists across the board. Leamer adeptly shifts focus away from complex equations to the patterns and narratives that emerge from the data.
It was with a heavy heart that I learned of Leamer’s passing in February 2025. His data-centric approach renders his macroeconomic insights both practical and refreshingly unbiased.
Standard economic discourse often glosses over crucial factors such as overhead costs and economies of scale, particularly relevant in our age dominated by colossal tech companies like Microsoft, Alphabet, and Meta. A foundational text on this subject is Information Rules by Hal R. Varian and Carl Shapiro, while a more contemporary exploration can be found in Capitalism Without Capital by Jonathan Haskel and Stian Westlake.
Delving into economic history can provide critical context often neglected by both academics and popular writers. In this vein, I recommend Manias, Panics, and Crashes by Charles P. Kindleberger and Robert Z. Aliber, which chronicles episodes of financial excess.
Equally important is understanding the transformative escape from poverty that characterized the Industrial Revolution. For classic insights, turn to How the West Grew Rich by Nathan Rosenberg and L.E. Birdzell, Jr., or the more recent A Culture of Growth by Joel Mokyr.
With the ongoing discourse on economic inequality, a modern classic to consider is Myths of Rich and Poor by W. Michael Cox and Richard Alm. This contrarian perspective argues that the poor are not necessarily getting poorer; their data reveals that many individuals who were once in the lower income brackets have ascended since the book’s publication, indicating a continued trend of upward mobility.
Books to Avoid
On the subject of income distribution, Thomas Piketty’s Capital in the 21st Century undoubtedly tops the “Avoid” list. Despite its acclaim, it has drawn significant criticism, both theoretically and empirically. Notably, Piketty’s argument attributing the decline in labor’s income share to rising capital income has been challenged, with evidence suggesting that real estate rental income plays a pivotal role. While Piketty may have a way with words, his book languishes unread on many shelves.
Turning to macroeconomics, Stephanie Kelton’s The Deficit Myth promotes what is known as Modern Monetary Theory (MMT). This framework seemingly endorses unlimited government deficits, a notion that may have inadvertently contributed to the excessive government spending and inflation that plagued the Biden administration.
For deeper exploration of these subjects, consider the following:
In 2005, Steven Levitt and Stephen J. Dubner released Freakonomics, a surprise bestseller that likely garnered more readers than the rest of the titles mentioned herein combined. While many economists welcomed its popular approach, showcasing the methodology of natural experiments to challenge established norms, others critiqued it as a mere collection of isolated studies lacking a coherent thesis. Some findings also failed to withstand scrutiny upon further review. Thus, while the book merits praise for its innovative style, it is not without its share of valid criticisms.
Footnotes
[1] This format draws inspiration from Noah Smith’s recommendations on his Substack, Noahpinion, in his post “Popular econ books: What to read, what not to read”.
[2] Russell Roberts, The Price of Everything: A Parable of Possibility and Prosperity. Princeton University Press, 2009.
[3] David Friedman, Hidden Order: The Economics of Everyday Life. Independently published, 2019.
[4] Edward Leamer, Macroeconomic Patterns and Stories.
[5] Carl Shapiro and Hal Varian, Information Rules. Harvard Business Review Press, 1998.
[6] I reviewed this book at “Economics when Value Is Intangible,” by Arnold Kling. Library of Economics and Liberty, Jan. 1, 2018.
[7] Charles Kindleberger, Manias, Panics, and Crashes: A History of Financial Crises. Wiley, 2000.
[8] Nathan Rosenberg and L.E. Birdzell, Jr. How the West Grew Rich: The Economic Transformation of the Industrial World. Basic Books, 1987.
[9] I reviewed this book at “Ideas and Economic Growth,” by Arnold Kling. Library of Economics and Liberty, Jan. 2, 2017.
[10] Michael Cox and Richard Alm, Myths of Rich and Poor. Basic Books, 2000.
[11] Thomas Piketty, Capital in the Twenty-First Century. Belknap Press, 2017.
[12] I reviewed this book at “Deficits—Budgetary and Conceptual,” by Arnold Kling. Law and Liberty, July 17, 2020.
[13] Steven D. Levitt and Steven J. Dubner, Freakonomics: A Rogue Economist Explores the Hidden Side of Everything. William Morrow, 2005.
*Arnold Kling holds a Ph.D. in economics from the Massachusetts Institute of Technology. He has authored several works, including Crisis of Abundance: Rethinking How We Pay for Health Care; Invisible Wealth: The Hidden Story of How Markets Work; Unchecked and Unbalanced: How the Discrepancy Between Knowledge and Power Caused the Financial Crisis and Threatens Democracy; and Specialization and Trade: A Re-introduction to Economics. His contributions to EconLog spanned from January 2003 to August 2012.
Discover more of Arnold Kling’s reading selections. For additional reviews and articles authored by Arnold Kling, visit the Archive.
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