The Undercover Economist: Exposing Why the Rich Are Rich, Why the Poor Are Poor--And Why You Can Never Buy a Decent Used Car! by Tim Harford

May 26, 2010 Dustin Allison rated it 3 of 5 stars · review of another edition

From buying a used car to purchasing health insurance, Harford takes a look at a variety of situations that can have a real pratical impact on how we look at some of our everday activities. His take on health care, and how it is dealt with differently in Britain and the United States, was perhaps the most meaningful topic for me.

Growing up, I constantly heard how poor the health care was in socialized medicine and how we should protect our market system. The problem is that our health care syst...more

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Mar 06, 2012 Mark Jones rated it 5 of 5 stars · review of another edition

With humour, and style, Tim Harford introduces the reader to the not-so-esoteric word of economics. The awesome power of the market to not just create wealth and redistribute it, but to also dramatically improve people's lives in ways no other system can manage, whilst simultaneously improving efficiency and delivering information becomes shockingly clear, and surprisingly simple! There's a wealth of optimism and hope riding through these pages, not because Tim is an optimistic chap, but because...more

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Oct 25, 2008 Trevor rated it 4 of 5 stars · review of another edition

Shelves: economics

There was a point at the start of this book when I thought I wasn’t going to make it to the end – or even past the start. It was when the market economy was described as The World of Truth. ‘Oh god’, I thought, ‘this can only mean one thing…’

But I was wrong. This was a much better book than I thought it was going to end up. It was quite slow at the start when he was talking about Starbucks and pricing policies – but my interest picked up when he discussed two computer printers made by IBM in wh...more There was a point at the start of this book when I thought I wasn’t going to make it to the end – or even past the start. It was when the market economy was described as The World of Truth. ‘Oh god’, I thought, ‘this can only mean one thing…’

But I was wrong. This was a much better book than I thought it was going to end up. It was quite slow at the start when he was talking about Starbucks and pricing policies – but my interest picked up when he discussed two computer printers made by IBM in which the only difference between them was that a chip was added to the cheaper one to make it run more slowly. That is, of the two printers the expensive one was cheaper to produce and was then nobbled to make it run more slowly and this surreal exercise was so as to create a price comparison between the two models.

After explaining why the market is magnificent he does then modify this by explaining that the market does have problems and blind spots and some ways incentives can be created to force the market to address these blind spots. There is an interesting discussion of game theory and a very comprehensive discussion of externalities which I found fascinating.

I kept comparing this book with Sowell’s Basic Economics. Both writers are very keen ‘the market is great’ types – but Harford is much less of a fundamentalist than Sowell.

I’m looking at getting hold of a Teaching Company introduction to Economics. I need to learn more about comparative advantage as advanced by Ricardo. Basically, the idea is that free trade doesn’t do all the bad things people think it does, because free trade encourages countries to focus on their comparative advantage. This was something that Sowell also discussed, but I found him so rabidly pro-market and pro-free trade that all I could hear was his playing with numbers. The idea is actually quite an interesting one.

Let’s say workers in the US can make both shoes and televisions, as can workers in Australia. The US workers can make 1000 shoes in an hour and 50 televisions. The workers in Australia can make 500 shoes and 5 televisions in an hour. Ricardo says that even though the US workers can make more of both products than the Australian workers can they would be better off making just televisions and trading with Australia for shoes – as Australia has a comparative advantage in making shoes over Australia making televisions and if both countries do what they do ‘best’ then both will be better off. It doesn’t seem to make sense – but both Sowell and Harford show clearly that when countries play to their comparative advantages they are, in fact, better off.

In both books this also leads to the idea that I should give up my self imposed ban on Nike products – as despite the horrible, sweatshop conditions that Nike creates and profits from, those conditions are better for the workers in third world countries than the existing conditions outside of those workshops are. I’m going to have to read more about this.

Harford isn’t as smug as Sowell, but that has meant he has made me think about things much more than Sowell was ever likely to. For example, he talks about the nexus between environmental destruction and economic progress. This is something my friends and I talk about quite often over an Indian lamb curry. The problem is that we know that we consume a disproportionate share of the world’s resources. We know that the rest of the world can’t possibly share our lifestyle. So, then what? Should we actively stop the third world from developing? Are we ever likely to live simpler, more environmentally sustainable lives in the West? Well, it seems very unlikely. Where Sowell simply denies there is a problem, Harford proposes ways of addressing these issues which are not just saying ‘there’s no place like the market’ over and over again while clicking your heels together.

Central to these are ways of manipulating the ‘pure’ operation of the market so as to take into consideration market failures, such as ecological collapse. He proposes that this be done by putting a value on the production of CO2 or other pollutants and allowing the market to then adjust to that cost.

As he says at the end of the book – morally, development seems to be the only possible solution. I just wish I could believe that when confronted with a choice between a bigger television set and the end of the world that people would make the right choice. Given the number of SUVs on the streets (and despite the cost to run them) I have no reason for any such confidence.

I really need to read a leftwing guide to basic economics that deals with these issues in a comprehensive way.
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Jun 02, 2012 Sheila rated it 4 of 5 stars · review of another edition

Shelves: reread2012

Rereading it several years later, and with a bit more background in econ, I still find it informational and entertaining, but it highlights some of the frustrations I have with econ: great for revealing insights, a struggle when it comes to applying it to public policy. Sweatshops are better than the alternative, and given time (decades) lead to prosperity, but people are still suffering today, right now, so how do you address that without throwing off the progress over time? (Note: I don't know...more

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Dec 03, 2007 Cory rated it 5 of 5 stars · review of another edition Recommends it for: anyone without an economics degree

Shelves: books-i-have

This book was a fantastic overview of (what I think is) basic economic theory, but told in a way that made it incredibly readable. Harford is a great writer and manages to frame his topics in a way that is both highly relevant to real life while being simple enough that anyone can understand. It ranges from the small (the economics of Starbucks and how to prevent traffic jams) to the huge (why poor countries stay poor and how china became rich). I imagine that someone with a serious background i...more

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Jun 03, 2007 Matt rated it 5 of 5 stars · review of another edition

I'm a sucker for pop books about economics, and this is the best of the breed -- better, even, than that NYT bestseller Freakonomics. Why? Because Harford, unlike Levitt, actually explains the reasoning and the data he used to follow a problem from its formulation through to its conclusions. He also addresses classic economic problems--why is it hard to buy a used car? why do all the restaurants in Times Square suck? etc., as compared to why you should name your child "Tova". His chapter on heal...more

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Oct 27, 2007 Brian Loux rated it 4 of 5 stars · review of another edition

More entertaining, thoughtful, and relevant than Freakonomics. Freak tended to ramble and explain how economics helped explain random things like drug-dealing cartels and cheating on standardized tests, Undercover has a planned narrative from start to finish and helps explain important things like why things cost what they do and how third world countries grow. It's admittedly a pro-free markets tome, which shows through in the international development chapter, but soundly addresses a number of...more

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Jan 15, 2009 Joe rated it 1 of 5 stars

Shelves: abandoned-for-good

Like a bad cup of coffee, I'm already struggling to force this down. As a former World Bank employee and Financial Times editor it will come as no surprise that Hardford thinks trade unions and free healthcare are bad, sweatshops are good and the free market will fix everything. There's something to be said for knowing your enemy, but The Undercover Economist's smug, patronising tone and Harford's self-avowed preference for armchair reasoning will have you grinding your teeth in frustration.

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May 13, 2013 Leon rated it 4 of 5 stars · review of another edition

“The economy [isn’t] a bunch of rather dull statistics with names like GDP (gross domestic product),” notes Tim Harford, columnist and regular guest on NPR’s Marketplace, “economics is about who gets what and why.” In this acclaimed and riveting book–part exposé, part user’s manual–the astute and entertaining columnist from the Financial Times demystifies the ways in which money works in the world. From why the coffee in your cup costs so much to why efficiency is not necessarily the answer to

...more

“The economy [isn’t] a bunch of rather dull statistics with names like GDP (gross domestic product),” notes Tim Harford, columnist and regular guest on NPR’s Marketplace, “economics is about who gets what and why.” In this acclaimed and riveting book–part exposé, part user’s manual–the astute and entertaining columnist from the Financial Times demystifies the ways in which money works in the world. From why the coffee in your cup costs so much to why efficiency is not necessarily the answer to ensuring a fair society, from improving health care to curing crosstown traffic–all the dirty little secrets of dollars and cents are delightfully revealed by The Undercover Economist.

“A rare specimen: a book on economics that will enthrall its readers . . . It brings the power of economics to life.”
–Steven D. Levitt, coauthor of Freakonomics

“A playful guide to the economics of everyday life, and as such is something of an elder sibling to Steven Levitt’s wild child, the hugely successful Freakonomics.”
–The Economist

“A tour de force . . . If you need to be convinced of the everrelevant and fascinating nature of economics, read this insightful and witty book.”
–Jagdish Bhagwati, author of In Defense of Globalization

“This is a book to savor.”
–The New York Times

“Harford writes like a dream. From his book I found out why there’s a Starbucks on every corner [and] how not to get duped in an auction. Reading The Undercover Economist is like spending an ordinary day wearing X-ray goggles.”
–David Bodanis, author of Electric Universe

“Much wit and wisdom.”
–The Houston Chronicle
From Publishers Weekly
Nattily packaged-the cover sports a Roy Lichtensteinesque image of an economist in Dick Tracy garb-and cleverly written, this book applies basic economic theory to such modern phenomena as Starbucks' pricing system and Microsoft's stock values. While the concepts explored are those encountered in Microeconomics 101, Harford gracefully explains abstruse ideas like pricing along the demand curve and game theory using real world examples without relying on graphs or jargon. The book addresses free market economic theory, but Harford is not a complete apologist for capitalism; he shows how companies from Amazon.com to Whole Foods to Starbucks have gouged consumers through guerrilla pricing techniques and explains the high rents in London (it has more to do with agriculture than one might think). Harford comes down soft on Chinese sweatshops, acknowledging "conditions in factories are terrible," but "sweatshops are better than the horrors that came before them, and a step on the road to something better." Perhaps, but Harford doesn't question whether communism or a capitalist-style industrial revolution are the only two choices available in modern economies. That aside, the book is unequaled in its accessibility and ability to show how free market economic forces affect readers' day-to-day.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
From Bookmarks Magazine
Harford exposes the dark underbelly of capitalism in Undercover Economist. Compared with Steven Levitt’s and Stephen J. Dubner’s popular Freakonomics (* July/Aug 2005), the book uses simple, playful examples (written in plain English) to elucidate complex economic theories. Critics agree that the book will grip readers interested in understanding free-market forces but disagree about Harford’s approach. Some thought the author mastered the small ideas while keeping in sight the larger context of globalization; others faulted Harford for failing to criticize certain economic theories and to ground his arguments in political, organizational structures. Either way, his case studies—some entertaining, others indicative of times to come—will make you think twice about that cup of coffee.
Copyright © 2004 Phillips & Nelson Media, Inc.

From Publishers Weekly

Nattily packaged-the cover sports a Roy Lichtensteinesque image of an economist in Dick Tracy garb-and cleverly written, this book applies basic economic theory to such modern phenomena as Starbucks' pricing system and Microsoft's stock values. While the concepts explored are those encountered in Microeconomics 101, Harford gracefully explains abstruse ideas like pricing along the demand curve and game theory using real world examples without relying on graphs or jargon. The book addresses free market economic theory, but Harford is not a complete apologist for capitalism; he shows how companies from Amazon.com to Whole Foods to Starbucks have gouged consumers through guerrilla pricing techniques and explains the high rents in London (it has more to do with agriculture than one might think). Harford comes down soft on Chinese sweatshops, acknowledging "conditions in factories are terrible," but "sweatshops are better than the horrors that came before them, and a step on the road to something better." Perhaps, but Harford doesn't question whether communism or a capitalist-style industrial revolution are the only two choices available in modern economies. That aside, the book is unequaled in its accessibility and ability to show how free market economic forces affect readers' day-to-day.
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.

From Bookmarks Magazine

Harford exposes the dark underbelly of capitalism in Undercover Economist. Compared with Steven Levitt’s and Stephen J. Dubner’s popular Freakonomics (* July/Aug 2005), the book uses simple, playful examples (written in plain English) to elucidate complex economic theories. Critics agree that the book will grip readers interested in understanding free-market forces but disagree about Harford’s approach. Some thought the author mastered the small ideas while keeping in sight the larger context of globalization; others faulted Harford for failing to criticize certain economic theories and to ground his arguments in political, organizational structures. Either way, his case studies—some entertaining, others indicative of times to come—will make you think twice about that cup of coffee.

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Apr 22, 2013 Theerasak Maneeneim rated it 4 of 5 stars · review of another edition

Shelves: non-fiction

เดิมทีผมซื้อหนังสือเล่มนี้มาเพราะคิดว่ามันคงเป็นแนวๆ Edutainment อ่านง่ายๆ เบาหัวแต่ไม่เลย ผมใช้เวลาอ่านหนังสือเล่มนี้มากกว่าเล่มอื่นหลายเท่านัก อ่านไม่จบซักทีเพราะอ่านทีไรเป็นหลับตลอด

ทิม อธิบายหลักการทางเศรษฐศาสตร์ บอกถึงเหตุและผลของสิ่งต่างๆ ที่เราเจอกันอยู่ในชีวิตว่าทำไมมันถึงเป็นเช่นนั้น เช่น

- ทำไมร้านป๊อปคอร์นที่โรงหนังถึงแพงกว่าของป้ามุ้ยหน้าศาล
- ทำไมเราถึงหารถยนต์มือสองดีๆ ไม่ค่อยได้
- ทำไมราคาเข้าชมเมืองโบราณ ถึงมักจะเก็บค่าเข้าชมชาวต่างชาติ แพงกว่าคนท้องถิ่น
- คุณคิดว่าการที่เรา boycott ไ...more เดิมทีผมซื้อหนังสือเล่มนี้มาเพราะคิดว่ามันคงเป็นแนวๆ Edutainment อ่านง่ายๆ เบาหัวแต่ไม่เลย ผมใช้เวลาอ่านหนังสือเล่มนี้มากกว่าเล่มอื่นหลายเท่านัก อ่านไม่จบซักทีเพราะอ่านทีไรเป็นหลับตลอด

ทิม อธิบายหลักการทางเศรษฐศาสตร์ บอกถึงเหตุและผลของสิ่งต่างๆ ที่เราเจอกันอยู่ในชีวิตว่าทำไมมันถึงเป็นเช่นนั้น เช่น

- ทำไมร้านป๊อปคอร์นที่โรงหนังถึงแพงกว่าของป้ามุ้ยหน้าศาล
- ทำไมเราถึงหารถยนต์มือสองดีๆ ไม่ค่อยได้
- ทำไมราคาเข้าชมเมืองโบราณ ถึงมักจะเก็บค่าเข้าชมชาวต่างชาติ แพงกว่าคนท้องถิ่น
- คุณคิดว่าการที่เรา boycott ไม่ซื้อสินค้าจากบริษัทที่ผลิตโดยโรงงานที่มีการกดขี่แรงงานนั้นดีหรือไม่

ทิมได้อ้างอิงทฤษฎีทางเศรษฐศาสตร์ และข้อมูลทีเกี่ยวของมากมาย แล้วมาสรุปให้พวกเราฟัง เศรษฐศาสตร์ คืออะไร ทิมได้อธิบายไว้แล้วในหนังสือเล่มนี้ โดยยกตัวอย่างให้เราเห็นภาพ ทิมให้มุมมองความคิดเห็นทั้งสองด้านของทฤษฎี เปรียบเทียบข้อดีข้อเสียให้เห็นด้วย...

ที่บอกว่าหนักหัวนั้น เพราะผมอยากทำความเข้าใจ และคิดตามในสิ่งที่ทิมคิดรวมทั้งประโยคที่แปลอออกมานั้น บางทีผมต้องนั่งแปลไทยเป็นไทยอีกนิดหน่อย

แต่... หนังสือเล่มนี้ ก็มีความรู้ มีคุณค่ามากมายที่จะทำให้ผมหยิบมันขึ้นมาอ่านครั้งแล้วครั้งเล่าหลังจากตื่นขึ้นมา (less)

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Jan 17, 2013 Carly rated it 5 of 5 stars · review of another edition

Shelves: math-science, nonfiction

Full disclosure--Tim Hartford runs my absolute favourite radio programme ever: BBC Radio 4's More or Less, a topical statistics programme. Yes, you heard me right. Basically, they do fact-checking on audience-recommended bizarre-sounding statistics. It's funny, fun, and relevant, and has the added benefit of actually catching all the zombie statistics that politicians use. Catch NPR ever having anything like that.

Anyway, all that simply goes to note that I was heavily, heavily predisposed to lik...more Full disclosure--Tim Hartford runs my absolute favourite radio programme ever: BBC Radio 4's More or Less, a topical statistics programme. Yes, you heard me right. Basically, they do fact-checking on audience-recommended bizarre-sounding statistics. It's funny, fun, and relevant, and has the added benefit of actually catching all the zombie statistics that politicians use. Catch NPR ever having anything like that.

Anyway, all that simply goes to note that I was heavily, heavily predisposed to like this book. And I did.

This book covers the basic intuition behind some of the most important economic concepts. It's kind of like what I expected Freakonomics to be: more economics, less freak. Harford walks through various familiar examples and their economic counterparts, mainly avoiding jargon and weaving anecdotes into quite an entertaining book. I'm a computer scientist, not an economist, and my little knowledge of economics comes from algorithmic game theory and similar. It was very interesting to really see how an economist thinks. My major problem with all of the theories that Harford propounded was that they heavily depend on rationality, and maybe more what I might term "utlitarian rationality": that people are not only rational in their actions, choosing whatever strategy gains them the most utility, but that they equate utility pretty directly with monetary gain. I have two real issues with this: first, people really aren't very good at choosing rational actions. Harford neatly sidestepped terms like Nash Equilibria, but he did invoke the concepts--and those are basically impossible for a supercomputer to achieve. How on earth would we expect people to find them? Second, I totally disagree with the notion that people actually measure gain via what economists tend to think of as utility. For an example, look up the "Ultimatum Game": people are so motivated by spite that they behave totally differently than the models would predict. I was actually interested to hear how much these imperfections in our real world disrupted the models, but Harford didn't really address this.

However, that was my only disappointment in the book. I'm slightly familiar with economics and definitely learned something, as well as being entertained by a series of fun facts. For instance, did you know that when IBM created its laser printers, it created the "economy" line by taking the professional printers and actually adding a computer chip to slow down the printer, meaning that economy printers actually cost them more to make? The book is chock full of entertaining tidbits like that. I can't recommend it enough-- definitely a good read for anyone who liked Freakonomics. Oh, and go listen to More or Less. Best radio show out there.(less)

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Mar 04, 2012 Remo rated it 4 of 5 stars · review of another edition

Shelves: finanzas, 2007

La idea de este libro promete mucho. El primer capítulo analiza por qué los cafés en Starbucks y otras cadenas comerciales cafeteras son tan caros comparados con un café en un bar. Tim Harford [TH] nos tiende una trampa, para luego darle la vuelta al argumento. En un principio podríamos pensar que los cafés de Starbucks son tan caros porque esta cadena suele tener sus tiendas en lugares de mucho nivel (en plena Gran Vía madrileña, justo a la salida de las principales estaciones de metro…), y que

...more

La idea de este libro promete mucho. El primer capítulo analiza por qué los cafés en Starbucks y otras cadenas comerciales cafeteras son tan caros comparados con un café en un bar. Tim Harford [TH] nos tiende una trampa, para luego darle la vuelta al argumento. En un principio podríamos pensar que los cafés de Starbucks son tan caros porque esta cadena suele tener sus tiendas en lugares de mucho nivel (en plena Gran Vía madrileña, justo a la salida de las principales estaciones de metro…), y que como paga alquileres muy caros, deben de tener precios caros para mantenerse. Pero es justo al contrario. Comenzando por el término económico de escasez (a ver si algún lector versado en economía amplía esa entrada de la Wikipedia, que está muy delgada la pobre), TH nos retrotrae a los primeros tiempos del Far West y hace un símil entre las tierras de pastoreo de distinta calidad y las franquicias cafeteras. Su tesis es que Starbucks se apodera de los lugares en los que hay demanda de café (salidas de estaciones de metro importantes, en hora punta matutina, las propias estaciones de metro, plazas centrales de grandes ciudades) y ofrece más dinero a los propietarios de los centros comerciales para que no haya más tiendas de café cerca. Como Starbucks tiene así el poder de la escasez, puede permitirse cobrar más caros los cafés porque la gente que sale del metro y necesita un café se para menos a comparar precios y decidir que un capuchino por 3€ es un exceso. He resumido muchísimo el argumento, que puede parecer cojo. La discusión del libro es mucho mejor.

TH nos explica luego qué es un mercado perfecto y cuáles son los tres principales “problemas” que hacen que algunos mercados no funcionen como deberían. Por el camino aprenderemos un montón sobre términos económicos, pero administrados con maestría, de forma que no duelan

Hay un capítulo fantástico sobre las subastas de licencias de telefonía UMTS y cómo dos países distintos (EE.UU. y Reino Unido), empleando sistemas similares, obtuvieron recaudaciones muy distintas por parte de las compañías de telecomunicaciones. Una leve variación en los sistemas provocó que un país obtuviera 100 veces menos ingresos que el otro por más o menos las mismas licencias puestas a subasta. Muy interesante.

También nos damos una vuelta por países en desarrollo. TH compara a Camerún y China, dos países que el autor visitó y que hace pocos años tenían niveles de pobreza similares. Mientras que China ahora es una superpotencia económica y no para de crecer, Camerún sigue sumido en la miseria.

Y aprendemos por qué TH cree que el protocolo de Kyoto puede ser realmente útil, pues un protocolo anterior, que los EE.UU. hicieron de manera interna, consiguió recortar muchísimo las emisiones de azufre.

Una de las mejores partes del libro comienza con la frase Una empresa siempre intentará cobrarte por un producto lo máximo que estés dispuesto a pagar. Y a continuación da multitud de ejemplos, que todos conocemos, de empresas que ponen distintos precios a productos muy similares para que cada cual elija lo que está dispuesto a pagar por ellos. Compañías aéreas, la propia Starbucks y unas cuantas más. Una explicación fantástica.

También hay referencias aisladas a teoremas económicos muy interesantes, como aquél que demuestra que imponer un arancel al producto A importado de otro país es equivalente a poner un arancel al producto B exportado por nuestro propio país.

El libro picotea por temas muy variados. No hay una tesis central que se vaya desarrollando, son más bien capítulos independientes, en general. La lectura es muy amena y a veces, sólo a veces, hay que releer una parte para asegurarse de haber entendido bien el concepto subyacente. Me lo he pasado pipa leyendo.

Mi nota: Muy interesante.

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Jun 30, 2011 Nick rated it 4 of 5 stars · review of another edition

Tim Harford's book is a convincing argument for giving a f#ck about economists. Within "Undercover," Harford presents very solid arguments for globalization; which certainly spun much of my view of free trade on its head, an excellent example of why poor countries are poor via Cameroon, and very good explanations of market scarcity and the not-so-right-wing belief in 'externality charges' (taxes) and regulation to bring the market to heel.

**Spoilers, albeit non-fiction**

Some highlights:

- the i...more Tim Harford's book is a convincing argument for giving a f#ck about economists. Within "Undercover," Harford presents very solid arguments for globalization; which certainly spun much of my view of free trade on its head, an excellent example of why poor countries are poor via Cameroon, and very good explanations of market scarcity and the not-so-right-wing belief in 'externality charges' (taxes) and regulation to bring the market to heel.

**Spoilers, albeit non-fiction**

Some highlights:

- the incredible mark-ups at coffee shops on higher-tiered products -- basically charging considerably more to have some whipped cream and caramel in your coffee and selling this to consumers who don't really care about price

- Harford uses the coffee shop analogy to demonstrate the importance of location, and fact that many people won't bother walking or driving a little further to save money

- Harford's highly persuasive views on healthcare, which basically boil down to adopting Singapore's system:

In Singapore, the government covers major medical expenses and emergencies, while the general public pays for regular and basic medical care through mandatory funds which they contribute to. These funds are in lieu of the taxes many governments would charge for free health care (eg Canada) or the bureaucracy needed to sustain a complex private health system (eg the USA) and they accrue interest at a high rate. Part of this fund can be used towards your pension at retirement age, and any remaining funds may be passed to relatives on your passing. In this way the young can save money for when they're elderly and need more health treatment, no one ever has to worry about emergencies and expensive procedures, and because it's in people's best interest to save, fewer people visit the hospital for silly reasons, more people are careful about their health, and wait times are reduced dramatically.

- While Harford does not prove that globalization causes no harm, does not delve far enough into the pollution issue, or what really happens when most of China and India have houses/air conditioning/cars, and doesn't even touch sustainability/dwindling resources/habitat destruction/deforestation, as I mentioned, he does put globalization in a light new to me. For example:

"If we are honest, then, the argument that trade leads to economic growth, which leads to climate change, leads us then to a stark conclusion: we should cut our trade links to make sure that the Chinese, Indians, and Africans stay poor. The question is whether any environmental catastrophe, even severe climate change, could possibly inflict the same terrible human cost as keeping three or four billion people in poverty. To ask that question is to answer it." - Harford, 208

As you can see, this is a thought-provoking book which comes highly rated. As with "Filthy Lucre" people on the left in particular should read this book, as you do not learn anything by reading from and preaching to the choir!(less)

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Nov 04, 2010 Dwayne rated it 5 of 5 stars · review of another edition

Shelves: for-review

Reviewed @ Girls Without a Bookshelf.

The truth is, in my eyes, economics is and will always be the best field of study ever. Complex, world-changing and integral to our daily lives, it has never been and will never be obsolete or far removed from our everyday actions and decisions. It may not have occurred to everyone how important economics is and how deeply it affects each individual until the onslaught of the recent recession, but regardless of how long your interest has been, The Undercover...more Reviewed @ Girls Without a Bookshelf.

The truth is, in my eyes, economics is and will always be the best field of study ever. Complex, world-changing and integral to our daily lives, it has never been and will never be obsolete or far removed from our everyday actions and decisions. It may not have occurred to everyone how important economics is and how deeply it affects each individual until the onslaught of the recent recession, but regardless of how long your interest has been, The Undercover Economist is a must-read for just about anyone who has the slightest bit of curiosity in what economics is really all about.

Tim Harford is a genius. This I found out when I attended one of his talks at the LSE a few months back. His book is no less brilliant and does not let up in its charms. The Undercover Economist is a good introduction to the study of economics - it covers the basic and immediately dives into what it really is. It erases the misconception that it only affects economists, and explains in various understandable ways. The author explains the subject in clear, easy to understand language, tailored especially for non-economics folks. That is not to say that this book is only for those who doesn't study economics. Fellow economists will also be charmed by The Undercover Economist, especially those in their early years of study and are looking towards how economics operates in our daily life.

The text in the book is conversational and is founded through examples in real life situations. Everyone will be able to relate to this because it refers to many things we do regularly - for instance, choosing free trade instead of non-free trade coffee, shopping in supermarkets and getting on the property ladder. The insights this book will give you makes you feel like an insider knowing how things operate - it is rather brilliant! It answers so many questions in a way that will pique your interest in the beauty that is economics.

And if you think this book is a boring academic text - you're wrong! It's as fun as an economics book can be - with its light hearted banters and amusing situations, not only is the author's brilliance embedded in this book, but also his fantastic sense of humour!

Clearly, I love this book, and I'm sure other readers do too. If you're vaguely interested in economics or are simply bored, why not pick up a copy of The Undercover Economist and perhaps discover an appreciation for everything economics...(less)

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Jul 17, 2010 Monthly Book Group rated it 4 of 5 stars

Introducing the book to the Monthly Book Group, the proposer said he had chosen it because his wife was buying a book for a rail journey, and, as there was a two for one offer at the station, he chose this. No, despite the analysis of railway station coffee outlets in Harford’s opening chapter, he had not also succumbed to the temptation to buy an expensive coffee. (He had been brought up to believe that food and drink was something to be consumed at home, not purchased at inflated prices outsid...more

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Jul 29, 2009 Stringy rated it 2 of 5 stars · review of another edition

Harford says he's going to tell you how the world really works, how economics provides insight into our activity. What he really tells you is how awesome the world would be if it was run by economists and everybody always acted rationally, if by 'rationally' you mean the economics jargon of 'assigning a monetary value to every single action/object in life' and not the common usage of 'according to the rules of logic'.

You can also find out how poverty is easy to fix (you just move the starting b...more

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Jun 28, 2009 Allisonperkel rated it 4 of 5 stars · review of another edition

Shelves: economics, non-fiction

I have a soft spot for economics books, especially somewhat poppy ones. Mr Hartford strikes a perfect balance between poppy and teaching core principals. In fact I had a very hard time putting this book down.

What sets this book apart from other economics books is the examples. Mr Hartford's choices range from Starbucks (why coffee beans will always be cheap but coffee won't be) to the true cost of tariffs to health care reform. In fact his was the only argument for health saving accounts (combi...more

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Mar 04, 2013 Dave rated it 4 of 5 stars · review of another edition

Shelves: business, economics, philosophy, politics

This almost got one less star, because I'm very, very disappointing with Harford's take on health insurance. That discussion is smack in the middle of the book, and up to that point I was thinking that his presentation of economics was good. It is more than a beginner's introduction, because even though that is what he's attempting to present, in order to really grasp the concepts it takes a bit more understanding.

His take on health insurance is colored by a bias for socialism or socialized med...more This almost got one less star, because I'm very, very disappointing with Harford's take on health insurance. That discussion is smack in the middle of the book, and up to that point I was thinking that his presentation of economics was good. It is more than a beginner's introduction, because even though that is what he's attempting to present, in order to really grasp the concepts it takes a bit more understanding.

His take on health insurance is colored by a bias for socialism or socialized medicine and he imposes some sort of moral/ethical quality that is not present in the strict terms of economics. He continually uses terminology that "government" insurance is "free", rather than presenting the fact that government's intrusion is an obstruction within the market and creates significant inefficiency, especially the lack of innovation. The resources to supply "government insurance" ARE NOT FREE, they are forcefully taken from people, which prevents people from utilizing those resources on other goods or in other markets, and forces a service onto people for which they might not otherwise choose. He tries to isolate healthcare insurance as though it is the only "good" thing from which participants can choose or ought to choose, rather than recalling his earlier chapters that show that consumers choose to participate in various markets and those choices have alternative benefits and consequences.

When he tries to compare the "satisfaction" or "dissatisfaction" poll of people in the USA who participate in the healthcare market versus other countries, it is a false comparison. You cannot ask people of one country if they are satisfied with their healthcare costs/service and compare the findings to those of the people from another country who are in a different system of care and governance. If you do, than you also have to compare what people might do with their resources if they had options, or are already doing since those in the US do have options. For example, would people living in country X, Y, or Z rather have socialized medical care or the freedom to choose a smaller national governance and the medical care that they want or don't want if they want some other good or service unrelated to healthcare? Or simply ask the citizens of the USA if they are satisfied with their healthcare system or would they rather have a government run system that would also greatly expand the size of government and increase the inefficiency of medical care? Or... ORRRRR... better yet, ask the people of England if they would rather have back the $X,XXX amount that is forcefully taken per-person per-year and spent on healthcare and the $XX,XXX amount that is forcefully taken per-person per-year for the bureaucracy of the government that is needed to forcefully take resources from its people and redistribute them to healthcare and to pay for the regulations and the oversight and...etc. TALK ABOUT EXCESSIVE ADMINISTRATIVE COSTS!!!!

Also, which healthcare system produces the best and most innovations? When was the last time anyone heard of some great invention in medical science being created in England or anywhere other than the USA? Harford talks fondly of the Canadian system, but fails to consider that it takes price controls on US pharmaceutical companies to subsidize its costs, i.e. US consumers are subsidizing Canadian healthcare. And.... AND.... why is it that Canadians flee their home medical care and opt to pay out of pocket for care in the USA, but you don't have citizens of the US crossing over the boarder for care?

The ONLY reason that European countries have been able to afford socialism is because they have not had to spend a significant amount of resources on military and didn't need to keep their own peace for prosperity. Let's see how much the people enjoy socialized medical care after Greece, Spain, Portugal, Italy, England, and France deal with austerity, or how they afford peace and prosperity if the US cannot afford the costs of its entitlement programs and military. (less)

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Aug 06, 2007 Inggita rated it 3 of 5 stars · review of another edition

Shelves: media-socsci-journ-philo

i'll never look at my latte cup the same way again! He's a freakonomist with a more tempered attitude - but actually loftier targets - combined with the tipping point - we might know more about how to get things our way... other than persuasion - its basic assumption is that human being are calculating pragmatists (totally against my industry here!) and a simple policy tweaking will get everyone lined up to do what we want them to do the way we want them to do it...

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Feb 18, 2012 Nuno Vargas rated it 4 of 5 stars · review of another edition

Shelves: my-library-physical, economy

This was my second read on the topic after Freakonomics: A Rogue Economist Explores the Hidden Side of Everything, and I must say they're quite different books as here we're treated to a broader view of Economy, not just specific case studies.
In general I enjoyed it, and I did learn quite a lot about possible solutions to major problems in today's societies. But I was occasionally annoyed by what was proposed because, in practice, I don't think it would work. I won't detail too much but I get t...more

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Jul 01, 2007 Sarah rated it 3 of 5 stars

Shelves: economics

This well-written, easy-to-read popular nonfiction book would be a good choice for anyone looking for a broad introductory overview of (or refresher on) contemporary economics. Harford tends towards a rosier-than-reasonable perspective on modern capitalism and is positively dismissive of some legitimate environmental concerns associated with globalization. Nevertheless, I found his book to be humorous and engaging. Great plane reading for wonky types.

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Dec 01, 2012 Curtis rated it 4 of 5 stars

Shelves: economics, nonfiction

Quite a good little intro. I read enough economics texts and blogs (note to self: add Tim Harford's blog to my already bulging list of RSS feeds) that I didn't find anything too surprising. Nevertheless, the overall presentation is well done for a popular overview, and served as a good review. As an aside, the constant coffee-talk reminded me of Peter Navarro's stock trading treatise If It's Raining in Brazil Buy Starbucks.

The only point of cognitive dissonance I had was that, having been publis...more

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Jun 10, 2011 Sarah rated it 3 of 5 stars · review of another edition

Shelves: non-fiction, culture, economics

Not as readable and visceral as Freakonomics, rather more of an Econ 101 primer. Harford makes global (and local) economics fairly easy to understand, although he acknowledges it's oversimplified. This means, of course, that you feel like you're not really getting the whole story on many topics.
For example: sweat shops are good for their employees, who have few other options... support them! And: regulations and government interference with markets are bad! I would have liked to hear a bit more...more

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Feb 05, 2009 Bookmarks Magazine added it · review of another edition

Harford exposes the dark underbelly of capitalism in Undercover Economist. Compared with Steven Levitt's and Stephen J. Dubner's popular Freakonomics (*** July/Aug 2005), the book uses simple, playful examples (written in plain English) to elucidate complex economic theories. Critics agree that the book will grip readers interested in understanding free-market forces but disagree about Harford's approach. Some thought the author mastered the small ideas while keeping in sight the larger context

...more

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Jan 17, 2009 Emily rated it 3 of 5 stars · review of another edition

Okay, so it's no Freakonomics. It's not nearly as readable or as wowing. However, I learned a lot and I've found myself reporting on things from this book in conversation a lot lately. Ask me about my "comparative advantage" and see for yourself. There's a lot of food for thought here.
I'm not an economist and I don't get a LOT of what this guy is talking about a lot of the time - but I got it some of the time, so his efforts at creating an accessible piece of economic writing are not in vain. I...more

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Dec 11, 2011 Andrew K. rated it 3 of 5 stars · review of another edition

Shelves: economics

I'll be brief: the first half of this book is good, the second half is disappointing.

In the first half, Tim Harford takes a fun look at various phenomena, such as the locations of coffee shops or why it is difficult to buy a used car, through an economic lens. Pretty interesting microeconomics. (And let's be honest: microeconomics is more interesting.)

The second half is a good bit more annoying -- it's macroeconomics, poorly explained. There are a lot of unfortunate statements about why poor cou...more

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Oct 16, 2012 Luis rated it 3 of 5 stars · review of another edition

Shelves: essay, economics

Bueno y malo a partes iguales.

Tim Harford se dedica a lo largo de varios capítulos a desentrañar la economía detrás de las cosas de cada día. Si uno no tiene unos conocimientos aceptables de economía, como es mi caso, encontrará este libro agradable. Si los tiene, puede que lo encuentre aburrido.

Hay capítulos que sobresalen, especialmente los cotidianos como el del supermercado o el café; y otros que se hacen muy pesados, como el de China o los seguros de salud. Merece mucho la pena por las anéc...more

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Feb 05, 2012 Brian rated it 1 of 5 stars

Shelves: economics

I liked Freakonomics and bought this based in part on the endorsement of one of the co-authors of that book. Harford is a journalist with the Financial Times and what I got instead was a very plodding and pedantic treatment of basic economic orthodoxy. I really didn't learn anything. Many of the examples are dated or cliché. I found particularly disturbing his characterization of the market in China and Korea. China is still very much a planned economy and the transformation into a force of capi...more

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May 21, 2013 Pedro Garcia rated it 4 of 5 stars · review of another edition

I had abandoned the book the fist time that I tried to read it, because the first chapters are based on the assumption that markets can be perfect. If you find yourself in that situation, I recommend you to persevere.

(view spoiler)...more I had abandoned the book the fist time that I tried to read it, because the first chapters are based on the assumption that markets can be perfect. If you find yourself in that situation, I recommend you to persevere.

(view spoiler)(less)

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Jan 23, 2013 ahmed kano rated it 5 of 5 stars · review of another edition

قبل كتابة الريفيو فى ملاحظة بسيطة
اولا الكتاب ده حقق مبيعات عالية فى كذا دولة و مترجم لأكثر من لغة و لما دخلت على صفحة الكتاب لقيت أكثر من 370 صفحة من بين ريفيوهات و تقييمات و لما دخلت على نسخة الكتاب العربية لقيت صفحة واحدة و فيها 3 ريفيوهات .. و إن دل على شىء يدل أننا مجتمع معندوش أى وعى اقتصادى و مش بيحلم أنه يكون عنده وعى اقتصادى
ده مش دليل قوى .. ممكن يكون الناس بتقرا كتب اقتصادية تانية . مع انى أشك الصراحة فى كده
غالبية المثقفين العرب مبيهتموش الا بالروايات اللى بيتكلم عن العالم المثالى ال...more

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title link	preview: The Undercover Economist: Exposing Why the Rich Are Rich, Why the Poor Are Poor--And Why You Can Never Buy a Decent Used Car!
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The Undercover Economist: Exposing Why the Rich Are Rich, Why the Poor Are Poor--And Why You Can Never Buy a Decent Used Car!

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