Knowledge and Decisions 
Knowledge and Decisions, a winner of the 1980 Law and Economics Center Prize, was heralded as a "landmark work" and selected for this prize "because of its cogent contribution to our understanding of the differences between the market process and the process of government." In announcing the award, the center acclaimed Sowell, whose "contribution to our understanding of the process of regulation alone would make the book important, but in reemphasizing the diversity and efficiency that the market makes possible, [his] work goes deeper and becomes even more significant." "In a wholly original manner [Sowell] succeeds in translating abstract and theoretical argument into a highly concrete and realistic discussion of the central problems of contemporary economic policy." --F. A. Hayek "This is a brilliant book. Sowell illuminates how every society operates. In the process he also shows how the performance of our own society can be improved." --Milton Friedman
Reviews
Kudos to Sowell for using the very accurate idea of *social behavior* as a basis for explaining intergroup difference (rather than something so tenuous as IQ), and the separation of the actions of specific agencies from "society." Most writers do not bother to clearly delimit their operational terms and working notions. Also particularly clever was his observation of how institutions work as a matter of *self-interest* and create problems because it is in their best interest to have these problems.
The book must be read LINE by LINE. When he uses some of his very abstract statements to characterize a social process it is often NOT filled in with details. A theme that appears in many of his books is: "If it has happened once, it will happen again independent of settings." While you go through and read some of his statments, you will have to think back through your experiences of life and see if you have seen the same situation. And THAT is what makes this book take such a long time to read--expect it to take a month if read properly.
The index is excellent and I found it particularly useful for referencing subjects like black IQ research and things like that. Well researched if nothing else, and it goes a LONG way in explaining current situations by extrapolations of things in the book itself.
Perhaps it could have been made just a bit easier to read. Again: this is NOT light reading, and while it is chock full of information, it is WAY over the heads of most people.
This book is *required reading* for young black Americans. If paid careful attention to, it will do great things to break some of the bad habits that have infected us for a long time now. Really, it is a good book for any people who are looking for concrete reasons for group differences. And maybe in the case of the readers who would be the greatest beneficiaries of it (black Americans, from my view), it would undo some of the damage caused to young Blacks by Black Studies departments across the nations.
Feel free to email me with any questions/ comments.