The Economics and Politics of Race
Thomas Sowell
New York: William Morrow, 1983.
Biography: Thomas Sowell was born in 1930 North Carolina and grew up in Harlem. He graduated magna cum laude at Harvard University (1958), received his M.A. from Columbia University (1959), and Ph.D from the University of Chicago (1968). His dozen books, as well as numerous articles and essays, cover a wide range of topics, from classic economic theory to judicial activism, from civil rights to choosing the right college. Currently, Sowell is a senior research fellow at the Hoover Institution in Stanford, CA. A prolific writer, he is the leading black thinker on economics and social theory.
Overview of The Economics and Politics of Race: This book examines the conflict and tension between the economic consequences and political consequences of group differences. Sowell begins his study with acknowledging what history has made apparent, that is, racial and ethnic differences often hinder government stability. He argues that racial and ethnic animosity is not sufficiently explained by “doctrines of racial superiority and inferiority.” Rather, Sowell attempts to gain insights on group characteristics by first presenting historical case studies on three different groups of races. This is followed by an analysis of that data and the resulting implications on present and future political and economic policy.
From the beginning, Sowell reveals the value of observing trends and patterns of race history. For example, he studies the history of Chinese emigration and its positive economic effects in foreign countries. In all countries, including America, the Chinese are known for their entrepreneurship, specialized job skills, and capacity for hard work. However, Sowell notices a peculiar trend among the Chinese immigrants, that is, strict resistance in pursuing political careers or involvement with political movements. Thus, their positive economic contributions to the respective country are often hindered by the discriminatory political policies; natives jealous of immigrant economic success the plausible reason for the policies. The author also examines the histories of emigrants from Europe (Germans, Irish, Italians, and Jews) and the ethnicities of Negroid ancestry. Characteristics such as work ethic, moral attitudes, job skills, value on education, acculturation, and the degree of social transformation are compared across the differing people groups.
After studying the similarities and differences of existing cultural trends and patterns, Sowell is ready to critique political policies using insights from economical perspectives. He argues that policy should be shaped by the development of human capital, which is the “
abilityto produce.” Examples of human capital include education, discipline, frugality, good health, and skills. Sowell believes the creation of wealth through human capital and not the transfer of wealth through physical and financial capital is the decisive factor for economic planning. Making existing human capital more available produces “higher levels of productivity and real income.”
In short, politicians should be aware of the economic consequences of policies concerning social process regardless of intention. Well-meaning intention does not guarantee a desired outcome. The results of a process are what matters in the long run.
For Further Reading: Knowledge and Decisions (1980), Ethnic America: A History (1983), Civil Rights: Rhetoric or Reality (1985), Race and Culture: A World View (1994), Migrations and Cultures (1996), Conquests and Cultures (1998), Black Rednecks and White Rednecks (2005)