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Armchair Economist: Economics & Everyday Life

Steven E. Landsburg (Goodreads Author)

3.76 · Rating details · 3,385 ratings · 185 reviews

Witty economists are about as easy to find as anorexic mezzo-sopranos, natty mujahedeen, and cheerful Philadelphians. But Steven E. Landsburg...is one economist who fits the bill. In a wide-ranging, easily digested, unbelievably contrarian survey of everything from why popcorn at movie houses costs so much to why recycling may actually reduce the number of trees on the pla ...more

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Paperback, 251 pages

Published March 1st 1995 by Free Press (first published 1993)

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Oct 10, 2010 Tim rated it it was amazing · review of another edition

I wasn't going to bother commenting on this book but in regard to some of the other comments I feel I must. Those that rated this book a 1 or 2 and then jumped into politically-motivated negative comments - shame on you. You are intellectually dishonest to yourselves and those that read these reviews. There is nothing in this book that pushes a political agenda unlike MOST of the more recent psuedo-economics books being published. What IS presented by Landsburg are sound, economic analysis and d ...more

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Mar 27, 2007 Summer rated it it was ok

Shelves: 2007, cultural-studies

Abysmal, condescending, illogical and mean-spirited book on social economics. Absolutely no sources named for "statistics". The author seems to think that a significant number of people go to the movies solely to eat popcorn and that the benefits of recycling are outweighed by the fact that he doesn't feel like doing it. ...more

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Nov 24, 2007 Tony Cohen rated it liked it

I have to give this book a three since I did learn something, although I really hold it in remarkable contempt. For the first time ever while reading an economics book, I felt like I understood the contempt held for the 'dismal science'.

I feel like delving into this a bit. The author makes a claim that taxes don't add value to a society, because what you take from Peter, you pay to Paul, and in a sense of absolute value, it is true. If I have a million millionaires, who each earn 10 million a y I have to give this book a three since I did learn something, although I really hold it in remarkable contempt. For the first time ever while reading an economics book, I felt like I understood the contempt held for the 'dismal science'.

I feel like delving into this a bit. The author makes a claim that taxes don't add value to a society, because what you take from Peter, you pay to Paul, and in a sense of absolute value, it is true. If I have a million millionaires, who each earn 10 million a year, and I tax 1 million from them and give it to the poor, I have not made my society richer in absolute monetary terms, but this completely ignores one of his other insightful claims.

In a previous example, when discussing logging, he claimed that the actual economic benefit of cutting down trees, has to not only take into consideration the positive economic impact for the company, loggers, etc., but it also must factor in the emotional cost to the environmentalist who is upset about loosing said trees. Critically, and I must give credit where credit is due, the economist in question recognizes that labour is not valuable in and of itself, but the fruits of said labour are. So if I work my ass off and buy an Ipod, it is my enjoyment out of the purchase which is the true reward...this is what I work for. Hopefully, what I spend my money on brings me some form of satisfaction.

Now this is critical because this explains the real monetary value of walking along the beach. Non-economists might gag that this activity has a value, but it does. I could have done anything with my time, like work, but I chose to spend it in this particular manner, and that is worth something. So if enjoying nature means something, there could theoretically be a dollar value attached. In fact, there often is. My friend Judy owns a fat pad in Marin county (which she got for a song from a person shortly thereafter indited for international drug smuggling...but that story is for another time :-) Anyway, you would be hard pressed to find someone who loves nature more...for walking in it...swimming in it...and merely knowing it exists. But it does have a value. I don't know the number, but I would imagine that if a suitably ludicrous offer was made for 40 acres in Marin, that love of nature could be quantified. This insight, the fact that value must be attached, as hard as it may be, to non nuts-and-bolts numbers is true....and valuable...and then completely ignored as evident by the aforementioned millionaires example.

So lets look at those folk again. Let us say, that we tax the million millionaires earning 10 million dollars a year at 100,000 dollars annually. In actual dollar transfers, no one is richer or poorer. The big wage earners have lost 1% of their salary, and now there are 100,000,000,000 floating about to disperse to the poor. So lets play with my imaginary (but inspired from the book example) and up this tax to 5%, leaving our society, in the form of taxation from these sole 1 million millionaires 500 BILLION dollars to play with. Now, recognizing the principle of the need to weigh emotional benefits and costs with any economic plan, (accepting the complete dollar exchange equality) 1 million people have suffered. Now, how much they have suffered is hard to quantify. They have been taxed at 5%, and that is real. There may be an extra cottage in Aspen un-purchased, a Mazzerati (sp) undriven, or some classy couture unworn. Now, to say that the tax generated no value is to assume that the net emotional worth/perception of the 500 Billion to the poor is equal to the ennui suffered from the mega-wealthy, knowing that they have had a small percentage of their earnings accosted. So what emotive benefits do our poor people gain from this. That list is extensive, so how about we focus on the emotive benefit of what the wealthy gain from giving.

While some might wish they had an extra 10 Ferragamo shoes to wear, I am guessing others feel happy that the poor are better off. If nothing else, seeing poor people beg around you does have a tendency to be a wee bit depressing. Oh yeah, and when people are less desperate, they tend to not commit crimes...a portion of which maybe (just maybe) directed at the aforementioned wealthy....so maybe rich people might enjoy not living with constant security and behind gated fences....they may like having competent servants....rich people do have to interact with poor people, even if the later only serve them, and maybe they would like them to be able to do simple sums (only in terms of effective service mind you :-)...which they are likely to learn in school. Oh...and health care...poor people can spread infectious diseases...but not so likely if they have health care and last I checked rich people don't like dysentery either....and rich people might like the emotional value of living in a stable society unlikely to suffer from a despotic overthrow....also less likely in a country with people not at the mere level of starvation. Still think taxes don't produce anything Mr Economist? And I haven't even gotten to the benefits the poor might feel not living in the gutter. ...more

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Jul 25, 2020 Guillermo Pons rated it it was ok

Shelves: read-2020

I don't usually review books for the benefit of others. If I do, I usually make a brief statement for me to remember what I felt at a later time. But for those who want to read this book, which has been touted as the predecessor of "Freakonomics", or as a layman's introduction to economics, I have to say that it has been the worst book I've read in a long time.

I am sure that Professor Landsburg is knowledgeable in several fields, one of them being economics, but he is surely lacking information I don't usually review books for the benefit of others. If I do, I usually make a brief statement for me to remember what I felt at a later time. But for those who want to read this book, which has been touted as the predecessor of "Freakonomics", or as a layman's introduction to economics, I have to say that it has been the worst book I've read in a long time.

I am sure that Professor Landsburg is knowledgeable in several fields, one of them being economics, but he is surely lacking information in many others. Throughout the book he makes use of similes, analogies and other devices to explain economic theory -- or as he puts it, "how an economist sees the world." But this view often comes off as illogical, simplistic or, in the worst essays, immoral and despicable. He states that economics is a science devoid of feelings or personal preferences. It's true and no one can say otherwise. But it is his applications of economic theory toward political, social or scientific problems that reveal glaring omissions and scary rhetoric.

He helped me learn some economic theory, especially in the second half of the book, but he has also planted some dubious arguments and social theories. When it comes to the discussion of societal problems, he presents economical solutions as "common sense" but denies the reader any counter-arguments or reasons as to why they have not been implemented.

One of these cases is his view of judicial settlements. He states that a judge settling a case between buying mining safety equipment and letting the workers work without it does not matter. Either way the economic costs are the same. Workers without safety equipment will be compensated with higher wages, and the rate of mining accidents will stay the same because they're being more careful; workers who are given safety equipment will be deducted the cost of the safety equipment and will be more reckless given that they can take more risks. At the end of this essay, he figures that the cost of ruling for the safety equipment might actually cost the company more (if the miners are reckless and keep getting into accidents).

He deliberately avoids discussing the weight of human life, health or rights and their place in economics. Why a society demands the safety of people in hazardous situations is not completely attached to an economic cost is something he avoids commenting on. This book enforces the view that economists see everything in material cost (dollars, resources, production) without appropriately giving any importance to the unseen costs (happiness, quality of life, satisfaction) of economic policies.

Environmentalism is discussed, in a rather controversial essay at the end of the book, as something akin to a religion of sensationalized individuals looking to convert the whole world. He discusses the extinction of a species of monkeys as something worthless and without cost because their existence -- or nonexistence -- brings him no personal grievance. An environmentalist's anger about the relocation of a polluting factory from America to an unnamed third world country is declared irrational. He ignores that even if it now does not directly affect the American individual, the factory is still polluting -- something that continues to spout emissions and cause environmental damage. It is as if he is shocked that an individual might still care about a problem not directly affecting them.

He implies that recycling will result in fewer trees being planted by paper companies. But he does not mention that recycling policies are usually accompanied by anti-deforestation policies and planting initiatives, which directly make his argument mute.

It is true that a discipline lacks values and morals. Science can't tell you whether lying is bad or whether your wife cheating was deserved. So, too, is economics unable to tell right from wrong. But it is not the science of economics who was written this book. It is a man who, like any of us, is flawed and biased. He presents solid economic views with weak, subjective opinions that do not weigh more than his obsessive, simplistic book. ...more

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Jan 16, 2012 Bruce rated it it was ok

Recommends it for: party hosts seeking conversation starter material

Shelves: social-science

Recommended to my wife as Freakonomics’ better predecessor (Armchair Economist was originally published in 1993), Landsburg describes his work as “a chronicle of what [he] learned at lunch” (p. viii). Now, even granting the University of Rochester economics professor latitude befitting his choice of lunchtime companions, I was heartily disappointed to discover that the text indeed lives down to the author’s own humble description.

The tone is fine; Landsburg is chatty and informally fun. But each Recommended to my wife as Freakonomics’ better predecessor (Armchair Economist was originally published in 1993), Landsburg describes his work as “a chronicle of what [he] learned at lunch” (p. viii). Now, even granting the University of Rochester economics professor latitude befitting his choice of lunchtime companions, I was heartily disappointed to discover that the text indeed lives down to the author’s own humble description.

The tone is fine; Landsburg is chatty and informally fun. But each chapter is one series after another of economic or sociological examples tossed off and left unanalyzed. Why do concert promoters for acts that consistently sell-out choose to set prices lower than the maximum the market will bear? Yeah, that’s a good one, and here’s another: why should irrelevant celebrity endorsements (politicians for luggage) help sell products? And why would single diners tip waitstaff anonymously, with no one to impress? Why do movie theater owners charge so much for popcorn, when they could make up the difference on the movie ticket itself? All intriguing questions, which the author has no intention of fully exploring. I got fed up after five or so chapters in this vein. This book has conversation fodder aplenty, but nary a real insight. What, no mention of social proof, status theory, or even a passing familiarity with the Hollywood distribution model? Here, Steven, let me introduce you to Edward Jay Epstein and Harold Vogel. With due respect to the gentleman who preferred Landsburg’s efforts to those of his fellow Stevens Steven Levitt and Steven Dubner, at least the Freakonomics guys show some passing familiarity with their library.

P.S. Since I joined GoodReads, I’ve tried to make a habit of reviewing everything I’ve read more or less right after I finished it, if only as a reminder to myself of what it was and what I thought of it. For the most part, it’s proven to be a pretty good discipline, and I’ve enjoyed it, and in the process, encountered some fascinating fellow readers in the world, so bonus points there, and now just you shut up about the narcissism of it all, if you please.

Bird Brian has started a collection of audio book reviews called The Big Audio Project and invited/dared me to participate (well, Choupette dared me to use a fake Aussie accent, which is close enough). At any rate, now that I can compound my natural pretension with hamminess, there’s no telling what I might accomplish. This is one of three books that I read, thought little of, and never got around to that form my (first?) contribution to Brian's project. ...more

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Feb 20, 2008 Sarazen rated it it was amazing

Recommends it for: Everyone

Shelves: money-economics, our-mysterious-minds

There are a few books that when you read them they change your perspective on everything. This on one of those books. I did not realize how woefully uneducated I was on how economies work. What was a real insight was how small choices of people can make all the difference. Everyone could benefit from a few turns in these pages.

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Oct 21, 2015 Anthea rated it liked it

Shelves: 2015-reads, non-fiction, economics

this book was good until the last chapter "why I am not an environmentalist". overall it was simple to understand and not totally filled with jargon unlike some other economics textbooks. sufficient details with relatable real life scenarios that make it easy to be understood.

however that last chapter was just ..... it just pisses me off seeing that he thinks all these "benefits" outweighs the cost of what we are doing to the environment. smfh. people like him is the reason for global warming. ...more

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Nov 14, 2017 Shane Moore rated it did not like it

Shelves: non-fiction, male-author

I generally enjoy books that cover Economics topics for laymen, but I didn't like this one very much. The basics of the field are presented in a clear way, but the examples were often oversimplified to the point that they were distracting. His focus on economics isolated from all other aspects of society lead to him saying ridiculous things like, "taxes have no effect on the economy".
...more

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Aug 21, 2014 Andrew Breslin rated it liked it

My obsession with economics is starting to become a bit of a problem. Here is an example of actual post-coital dialogue between me and my girlfriend:

Me: (after a few merciful moments of blissful silence): One principle difference between the Federal Reserve and the European Central Bank in the former’s focus on stimulating growth, contrasted with the latter’s anti-inflationary position, as a result of historical and cultural precedents. As such, the ECB tends toward what Americans would view as

...more

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Aug 14, 2017 Parth Agrawal rated it it was amazing

Hey friends, long time no see Well I am to blame for that as under pressing circumstances, I got sidetracked from this wonderful addiction ;P

Well, let's talk about this new book that I just finished

This is the best book I've read so far folks and I'm not exaggerating. Well if an armchair economist, as the title suggests, can observe things the way Steven has done, I wonder what would an active economist running here and there will pull off. If you stop right wherever you are and go back in tim ...more

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Mar 02, 2014 Alice Furse added it

Much like Freakonomics, this book uses a number of case studies to illustrate different points on economics theories and is quite a fun read - however, I would say it goes slightly deeper than Freakonomics as it's slightly more detailed and erudite.

The last chapter, "Why I am Not an Environmentalist" really made me think, as Landsburg outlines the reasons why commonly-held beliefs on the behaviours that help the environment may not be as effective as we think. For example, he says that people t ...more

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Dec 09, 2014 Connor rated it it was ok

Interesting subjects presented but most lacked the critical analysis I was hoping for. The author seemed to oscillate between objective presentation and lecturing from personal opinion. The last chapter on environmentalism was intriguing but ending with the letter to the teacher seemed arbitrary and very ostentatious.

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Nov 11, 2014 Becky Johnston rated it it was ok · review of another edition

Read for class, but it just happened to be about a topic I didn't care at all about. Landsburg did not, to me, present a good case for caring about economics. Would recommend if you are interested in the topic; already know a great deal about the topic, but for the casual reader, I would skip it. ...more

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Nov 29, 2019 Stephanie Carr rated it liked it · review of another edition

Shelves: economics

A little intriguing, a little disappointing

At first I was really into this. I was picking up the examples like a sponge, nodding along with stuff that made sense, and recalling the fun experience of graphing every problem in my Econ 202 class. (Which really helps visualize things, for me at least)

Then about halfway through, the author has a whole section dedicated to points where the media "said something stupid about economics" (not a direct quote but Lord does it make me roll my eyes). Suddenl ...more

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Sep 13, 2019 نوید رشیدیان rated it it was ok · review of another edition

Shelves: social-sciences

Pretty well in explaining some basic insights from economics, but irritatingly trying to disguise one of the most inhumane moral philosophies I have ever encountered as science. The worst is when at the end of the nonsensical final essay against environmentalism Landsburg claim despite economics being a science free of values, engaging in it grows values such as respecting diversity, and by respecting diversity meaning a total refusal of accepting any responsibility and rejecting any kind of soc ...more

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Sep 07, 2018 Alona rated it really liked it

Contrary to Naked Economics, this book actually taught me something new and that was quite unexpected. The last essay about environmentalism was certainly eye-opening for me. I see a lot of things about it differently now and just can't stop thinking about it.

I'm glad that I've found out about this book and it made me to feel proud of being an economist (even if just by education).

Contrary to Naked Economics, this book actually taught me something new and that was quite unexpected. The last es ...more

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Jan 16, 2020 Annie rated it liked it · review of another edition

I give this book 3.5 stars. The author should have left out the economic analysis of law and legal disputes (how the economy is better or worse off depending on which party wins), his economic musings that have no answers, and his views on environmentalism (similar to his views on religion - don't impose on those who don't believe). This book is probably more interesting for people who want study economics rather than the general public. ...more

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Nov 01, 2019 Juraj Spilda rated it it was ok

The author tends to reduce arguments to simplistic strawman versions of the original problem to draw the conclusion that he wants to achieve. He also engages in unnecessary amounts of insults and condescension. If it weren't for one or two passable chapters, it would have been 1 star. ...more

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Feb 25, 2021 Moinuddin.95 rated it liked it · review of another edition

A concise guide to the basics of economics with the content being accessible to non-economist. Landsburg focuses on presenting difficult and abstract concepts of economics in a form which is easily assimilated by the average reader. The central subject of this book, as outlined by the author, is that economics can be mostly defined in four words: People respond to incentives.

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Dec 23, 2017 Pradip Caulagi rated it really liked it

There is one sentence in the book where the author gets it wrong - economic theory predicts that you are not enjoying this book as much as you thought you would*. I enjoyed it more than I thought I would!

* He fixes it in the next couple of sentences. "This is a special case of a more general proposition: Most things in life don't turn out as well as you thought they would." ...more

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Jul 27, 2014 Raymond rated it it was amazing · review of another edition

This review has been hidden because it contains spoilers. To view it, click here. I have read, paused, restarted and paused again on this books numerous times over the course of half a year. Landsburg made this book such a hard read (I meant this positively) to me, some the ideas or arguments carried in this book is overwhelmingly outrageous to what I know and understand (perhaps I should say those I thought I know). To make sense of them took me multiple flips between the pages to re-read the chapters. As an honest note, I still couldn't fully understood a few of those argum I have read, paused, restarted and paused again on this books numerous times over the course of half a year. Landsburg made this book such a hard read (I meant this positively) to me, some the ideas or arguments carried in this book is overwhelmingly outrageous to what I know and understand (perhaps I should say those I thought I know). To make sense of them took me multiple flips between the pages to re-read the chapters. As an honest note, I still couldn't fully understood a few of those arguments. I will definitely keep this book handy and re-read it again perhaps as a reference in some way.

The book aims to illustrate the thought process of economist, and in an indirectly way, the readers shall be able to glimpse and understand some fundamental theories in economics and what it is all about. I like how Landsburg uses anecdotes and harsh criticism to reflect his personal thoughts on various observable issues. The more I read this book, the more I felt that economics is a philosophical journey rather than some graphs or charts or statistics.

There's too much for me to put down in this review, but there's a few that I particularly like and hit me the hardest. First, the power of incentives, people responds to incentives and such can cause various unexpected outcome, e.g. seat belts caused more accidents. Secondly, prices are good, the role of having prices in our society as a justful guideline, e.g. prices will lead to the most efficient use of resources. Thirdly, mythology of deficits, differences of deficits and debts, and what should we care instead, e.g. deficits are just delayed taxes. Finally, random walks and stock market prices, dollar cost averaging is bad and foolish, e.g. DCA will increase your risk in the presence of “random walks” theory where past prices doesn't predict the future, rather the current prices do.

In short, I like this book very much, not only because it carries a lot thought provoking arguments and denials to our common sense, it opens up part of my mind to think in such a way that what Landburgs describe as how economists think. And as time progresses, I think I can enjoy the life with little bit more joy by looking through the glasses of an economist.
...more

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Mar 03, 2016 AJ H rated it it was amazing

The Armchair Economist was a very revealing and incredibly interesting book on how economics affects our daily lives. I was able to take in a lot of new knowledge from this book, and it really provides excellent descriptions and examples to help you understand concepts and it even teaches you how to apply them to different areas of life. This book proves that economics isn’t just boring numbers and algorithms, but instead it involves a lot of philosophy and theory that doesn’t necessarily requir ...more

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Apr 28, 2015 kirmany rated it it was amazing · review of another edition

Professor Landsburg extraordinary described the economics involved in our daily life.
I liked the expression - easy questions thinking using economics.
Professor argues that a world run only on an economic basis would turn out bad or good things, but that the good or the bad outcome is minor.
It is obviously true that “A price is attractive not when it is low compared with the past, but when it is low compared with the expected future”.
I think this book will change your point of view on so many th ...more

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Aug 26, 2009 Peterboh rated it it was amazing

Shelves: non-fiction

It is a good book about how most people fail to apply basic economic principles in their lives. It's tone reminds me of the Black Swan, as author sounds condescending at times.

However, this seems appropriate given the general ignorance of basic economics demonstrated by media and by general public. No book is probably going to change this prevailing ignorance, but it is a worth pursuit.

Regardless, Landsburg presents an interesting material and a book was an enjoyable read. ...more

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Aug 07, 2014 Brian rated it it was ok · review of another edition

Shelves: business

Not thrilled about this book. It seems too intangible. The arguments may be interesting in some cases but I didn't find that they translate well enough to reality. I hate to give poor reviews, but given that this is a book focused on concepts about the next best alternative, there are plenty of better alternatives. ...more

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Aug 29, 2015 E rated it it was amazing

Just a lovely book. People of all shapes and sizes will find things to hate and things to love. Explains and the national debt and budget deficits very well. Skewers the religion of environmentalism. Shows how the "magic" of prices explains so so many elements of economics. Can't recommend this book more highly. ...more

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Feb 23, 2016 Daniel rated it it was amazing

Shelves: bbb, shelfari-favorites, business, capitalism, economics, economics-human-capital, thinking

Steven Landsburg's writings were my post collegiate introduction to the real value of studying economics. My colleague, Ron Baker, recommended Landsburg and others. I purchased and read the book in almost one sitting. Humorous and well written, he describes much of the why of what we do. Great book. Guaranteed. ...more

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May 17, 2014 Tristia Watson rated it liked it

Reading this book is like listening to your favorite Economics professor share his favorite stories. (If you never had a favorite Economics professor, then Steven Landsburg is your guy.) Not as flashy as the Freakanomics books, but still a good insight into why things work the way they do.

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Jan 04, 2016 Allen Martin rated it really liked it

I really enjoyed this book, probably because I think like an economist.

I found things I agreed with, things I disagreed with, and several that made me go "huh". In all cases, it made me think, which is why it's worth reading. ...more

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