Book

Knowledge And Decisions

With a new preface by the author, this reissue of Thomas Sowell's classic study of decision making updates his seminal work in the context of The Vision of the Annointed, Sowell, one of America's most celebrated public intellectuals, describes

Characters

Thomas Sowell (3)

Before attempting to determine the effect of institutions, it is necessary to consider the inherent circumstances, constraints, and impelling forces at work in the environment within which the institutional mechanisms function.

— Thomas Sowell, amazon.com

Institutional Logics Understanding Complex Societal Machinery

Ideas are everywhere, but knowledge is rare.

— Thomas Sowell, amazon.com

Ideas Knowledge True Intellectual Understanding

Freedom has cost too much blood and agony to be relinquished at the cheap price of rhetoric.

— Thomas Sowell, amazon.com

Freedom Talk Is Cheap

WWWWWWWWWWWMMMWWWWWWWWWWWWM&                               K   &&&&MM&MM&&MMMMM&&K
WWWWWWWWWWMMMMMWWWWWWWWWWWWWM&                     KMK &K K KKKK&M&&&&KM&MMWWWWWWMWMK
WWWWWWWWWWMMMMMWWWWWWWWWWWWWWWM&                   KKK&K&& KKKKK&&&&K&&&&&MWWWWWWWWMWWWMM&&K K&KK&&K
WWWWWWWWWMM&&&MMWWWWWWWWWWWWWWWWM&                 &&KKKKKKKKKK  K&&&&&&&MWWWWWWWWWWWWWWWWWW&&KK&K &&
WWMMMWWWMM&&&&&&MWWWWWWWWWWWWWWWWW                  K&KKKKK&KK   K&&M&MWMWWWWWWWWWWWWWWWWWMMMWWWMM&&
WWMMMMMMM&&&KKKK&MMWWWWWWWWWWWWWWW                  &&&&&K&& &K  K&&&&&WWWWWWWWWWWWWWWWWWWWMMMWMM&&MK
WWWMMMM&&&KKKK  KK&MWWWWWWWWWWWWWW                  KK&&KKK       K&&WWWWWWWWWWWWWWWWWWWWWWMW&MMM&&KK
WWWMM&&&KKKKKK   KK&MMWWWWWWWWWWWW                  KKKK&&&KK&K   KK&&MWWWWMWWWWWWWWWWWWWWWWWW&MM&KK
WWWMM&&KK          KK&&MWWWWWWWWW                    KKK&&&&KKKKKK  KMWWWWWWWWWWWWWWWWWWWWWWMWMM&KK
WWWM&&KK             KKK&&MMWWWWW                 KK&&&&&&M&&&& K&K  MWWWWWWWWWWWWWMMWWWWWW&&W&&&KK
WWWM&K        KKKKKKK    KK&&MMWM                KK&&KK&K&KKK&&&&K K WMMWWWWWWWWWWWWWWMWWMWWM&K& KK
WWWM&         K&&&K&KK    KKKK&&M               KK&KKK&M&&K&&&&K&  K&MWWWWWWWWWWWWWWWWWWMMWMMMK&KK
WWM&K        K&&&&&&&&&&KKKKKKKK&               KK&&KKKK&&K&&&&&&K&MKWWWWWWWWWWWWWWWWWWWWWWM&MMK&
WM&K          &&MMMMM&&&&&&&&K&&K               K&&&&&&&&&MM&MM&&& MMWWWWWWWWWWWWWWWWWWWMWMM&&&M&&
WM&          K&MMWWWWWWMM&&MM&M&&               &&&K&&K&K&&MMKK&&&&&WMWWWWWWWWWWWWWWWWWWWWWMWWWMM&&K
W&K         KK&MMWWWWWWWWWWWMMM&&               &&&&&KK&K&MWMM&&&&&MWWWWWWWWWWWWWWWWWWWWWWWWWWWWM&&K
&K          K&&MMWWWWWWWWWWWWWWWK               &M&&&&&&M&&&MM&&&&&MMWWWWWWWWWWWWWWWWWWWWWWWWWWWWMMK
&            K&MMWWWWWWWWWWWWWWW                KM&&&MMWWMMMMWMMM&&W&MWWWWWWWWWWWWWWWWWWWWWWWWWW&&KK  K
M             K&MMWWWWWWWWWWWWWW               KK&&&&&MMMM&M&MMM&&MWWWWWWMMWWWWWW&MWWWWWWWWWW&WKK
WM             &&MMWWWWWWWWWWWWW                KK&KKM&  KK&  &&& &KK&MMWWWWK MMMK&K&&&K&MK&K KKK K&KKKK
WWM            K&MMMWWWWWWWWWWWW                 KK                      &KK          KK    K
WWM            K&&MMWWWWWWWWWWWW              K
KMM            KK&MWWWWWWWWWWWWW&                                                    K
WWWW            K&MWWWWWWWWWWWWWW&                                                                          &&K
MWWWW           KK&MWWWWWWWWWWWWWWW                       K&MMWWM&K                KK                  &&WWMMK
  &MM             K&MWWWWWWWWWWWWWWM                       KKKKK                  MWW&
                   K&MWWWWWWWWWWWWWK                                             KMWWWK
                    KK&MMWWWWWWWWWW&                                              &WWM                 K
                      KK&MMWWWWWWWW&K                                              MWMK                K
                        KKMMWWWWWWWMK                     KM&  KK&         &&  K  &&WM&              KKKMKKK
                         K&MMWWWWWWWK           KKK  K&K       KK              & KWW&&&K                 KKK
K                         K&&MMWWWWWM           KKKKK&&K                K&MWKKK K&WMWMK
&                          K&&MMWWWWW  W        KK&&&&M&M&&&& KKKM&MMMMM&&&K K K&MMMMM&                             KK
K                            K&&MMMMW  MM        K&&M&MMMMM&M&MM&MWWWWWWWMKKK && MMWWM&              KM&K&MM&&KKKK&KK
                                 KKKK  W&       KK&&MMMMWWWMWWWWWWWWWWWWW&KK KMM&MWWW&&               K &WWWWWWWWWW&K
                                       &         K&&&&&MMWWWWWWWWWWWWWWWWKK &&&MM&WWWMK             &&&MMWWWMWWWM&M&K

                                   .   .   .                                                                 ::.                                    ....   .
                                  , , .,, . .,,::                                                                    ::,,, ,                         ...   ,
                                  : :: .,  ..,::                                                                           ::, .                    .,,.. .
                                       . .  .:                                                                               : ,  .,. .. .          ....  :
                                   .   , ,.,                                                                                    ,,. :.:,  .          ... ,
                                  :,  , :    ::                                                                                  ::, :,,,:.          .  ,
                                      ,:,:,,.,                                                                                      ::,,. ,.        .  ,
                                      . .  ,                                                                                         :   . .          ,
                                  .       .:                                                                                                       ..
                                 ..        ,                                                                                    :    : :
                                 , ..     ,                                                                                           :,.
                                 :,,.    ,:                                                                                    ::      :
                                 :.,     :                                                                                     :, : :
                                 ,,    .::                                                                                       :.:,,:
                                 ,    .. ,                                                                                     ,. , .  ,
                                 . ..     :                                                                                     ,,                 .
                                 ,.,.     , :                                                                                    ,
                                 .:,.                                                                                            :,                .
                                   , ,    .:                                                                                     ::.
                                   :,     .                                                                                      ::,
                                                                                                      :,,,,,   ,,:,:. :          ::,.               .
                                                    :   ..           ,  ::                        ,                     .,:      ,,,.
                                 .       .         ,,     ..          :,,                      :                 .   .     .:,   :,,..                                  ::,,....,::
                                         ,                         ,   ..                     ::,      .             ::,..,.,.:: :::,,                                   :,.    ..,.
                                                                      :,,,,                 ::.     .                 :,,,,,,,,, ,,: :               .                   :,.    .,:.
                                    ,                                    ,..:            :,       :                   :,,: ::,: :, ::,,               ,                 :,..  ...,.
                                                          :,              ..,             ,      ::                .    ,:   :,::,:   :..       .  ,.  :               :.   .,:,..
                                                                          :              :  .  ,.,.  ,  .,           ,  ,:   :,::: :: :,:       .. .,.                 :.  .,  : :
                                                      .,                  :              :  ,,:   ,               :   ::,,,            ,,     ..... .., :::           :,,.,,:::, ,
           :                          .                                                  ,  ,                        ,,..:           ::,.     ..,,,   .:::           :..,:::::,,.
          :: : :                                                      :                  .  :                      ::                 ::     ,..,::,  ,.,:           :,.,: ::,,. :
          :::::                          :                        :                      .,.,: :                :::                  :::.  ,,,,,,,:. .,,:            ::,:::::,,. ,
          ::::::                         :                                               ,: ::                                        :,.     :,.,:. ,:::             :::::::,,. :
          :::::                                                                          ::  :::                                     ::,, ,:: :..,,. ,::             :::::,,,,,. :
           :::::                                                                         :,:  :::                                    :::, ,,::. .,,, ,:                :::::,,,.,..
             :::                         :                                                :,  ,::                                  :,:,,: ,,:.  .,.. ,::               :::,:,,,.,. .

                               }<<<              < }                                }**<<<<****}*}*<~<}**<*<*                                               ~*}    }}}}}*}}}}}}}}}}}
                                }<         ~                                                               }}}*<<~~~~                                       <      }}} }}}}*}}}}}}}}
                                      ~         }                                                         *}}}**<<****<<~~<                                ~}   }  }}}}} }}}}}}}}}}}
                                  < ~~        }                                                           }}}}}*<*}}  *}}**~~   *~                         *   }}}}} }} }}}}***}*}}}
                                    ~       ~<                                                             }   }***  }*}  }<**<}   ~     }                <}  }           }}}}}}}}}}
                                       ~ ~~<~  ~                                                           } } }}}    }} *}**}<<<   ~                    <}                  }}}}}}}
                                              }                                                            }}}}}}   } }}*****}<<<*<<                    <}                    }}}}}}
                                            <}                                                             *     }  } }}} }***<<~<<*<     ~            <}                    }}}}}}}
                                            ~<                                                           }}    }      ****}*<*~~~~**~}~              ~*                      }}}}}}}
                                            ~}                                                                        }}*}}}<<~~ ~*<~ <             *}                        }}} }
                                           <                                                                          }*****<*<~~~~<}<              }                       } }}}}}}
                                           }}                                                                        }}*****<~~  ~*~} ~             }                   }   }     }}
                                          <<}<                                                                        ***}}*<~~  ~ ~ **             }
                                          <<<                                                                       }}}}*****~~~~      <
                                          ~<<}                                                                       }}}*****<~  ~                                               }}}
                                         ~ ~~<                                                                        }**}***<<~                                                 }
                                             *                                                                        *}}**}}**~~
                                            *                                                                         }}}*}}*}*<<                                               }
  }}}                                                                                                                 }}**}}***<~                                               }}}
   <<}}                                                                                                           *}*} }***}**<<~
    ~~~*}                       ~         ~           *<~   **<<~<~   *}                            }~      ~~~        <**<<<<~~~                                        }}}}}}}}}}
    ~~~~<}}                     *         }        <                  ~    }                   }*~                         ~~~<<~                    }              }*<<<~~~~~~<<<*}
    }~~~~*}                                       ~                      ~~                  }<                               ~~~                             }}}**<<~~~           ~
     *~~~~*                       *               }**<*}        }*<      ~<~}             }}}~          ~}       *<<~           ~                    *   }***<<*<<<<<~~~~
      <~~~<}                             ~        *}*                *     ~<}          }<<<         }            }*<~          ~   ~                 <*<<<<<<<<<<<~<~~~~
      *~~~~*}                            <       } }                   }~    <*         *                         }}*~    ~    ~  ~                    ~~~<<<<<<<<<<<<~~
~~*   <~~~~<}}                      }    <                                   ~*          ~                          <<*~  <<<      ~~~                  ~~<<<<<<<<<<<<~
}}}  }<~~~~~**}                      ~   }            <                    <<~*                                       <<  **<     ~  ~                 ~~~~~<<<<<<<<*<~      ~~ <
   }*<~~~~~~~<*}}                    }   }           ~  <****<*< *<**}<<<~              }      ~ < ~        * *< }         ~<<<~<~~~~~~                ~   ~~<<<<<***<          <
   }*<~~~~~ ~~~~**}                                                                     }    ~~                 }  }<     ~<*<<**<<~~                     ~~~~<<<**<<
   **<~~~~  ~ ~ ~~<*}                    }                          *~ ~}               }    ~~< } }             *<  <}}}   }}} }<~<~~                    ~<<<~<<**<<     ~     ~
   }*<~~~~     ~~~~<*}                                       *<~~~ <}                   ~     ~         }*<<<<<~   <}       }   }}<<~                    ~~<<~<<<<<<~           *
     <~~~~      ~~~~*}                                                                  ~  ~  ~~                               }}}*<~~     ~~~           ~~~<<<<<<<<~~          *
     }<~~~     ~~~~~*}}                  *                                              <  ~~   ~}                               }<<~        ~          ~~~~~<<<<~<~~           <
      *~~~~     ~~~~<*}                  <                                              }   ~~   *                          }   }*<~~                  ~~~<<<<<<<<<~~~~
      }*<~~~~   ~~~~<<}}                                                                 <  ~~   *                             }}*~                     ~~~<<<<<<<<<<~~

                            UVo                   j UVUoUVU UUU                   UV                                                                           jjjj
                              UV                 oV   U  V U                         UVUVoVVVVojoVoojjooooV                                                  jjjjjj   j
                                UV               VU       U                                 U       Voojjj                                                   jjj jj     j
                                               joVU            UU                                 U  UUUVj          oj                                      jjj     j  j
                                  j           ojjUVU          UUU                                   UUoVoVo jjj    jj   oj                                  jj oooojjjjjjj
                                                oUUU        U  UU                                    UUVVoj j j   jooo  j                                  jjjoooojjjjjjjjjjj
              UU                               oVVVU       UUVUVUU                                   UUVVoo      jjj j                                    jjooVVooooojjjjjjjjj
              UUU                             jjoVUV           UUU                                  UVUVojj jjjjj oo j   j                               jooVVVVoooojojjjjjjj
         UUUUUUUUUU              j            jjVUUUU             VU                               UUVVVj  jojj oooooj                                 jjoooVVoVVooooojjjjjjj
        UUUVVUUUUUUUU                         VUUU             U   UU                              UUoooojjjjojojVVVoj                                ojjooVVVVVVVVoooojjjjjjj   j j
      UUVVVVVU       UUUU                   ooUoV                 V U                           U  VVooooooooVVVVVVVVo                               ojjoooVVVVVVoVoooojjjjj j
     UVVVVVVUU        UUUU                   joV                 UU                               UoVoVoooVVVooUVUVVo                j               ooooooVVVVVVVVVoooo jjj jjjjj
     UVooooVV                                 jV                                                 UUUVVVoVVVVVUVUUVVooj                 o             VooooVVVVVUVVVVVojjjjjjjjjjjjjj
    UVVoooVVUU                               joV                  U                               UUUUUVVUUVVUUUVVVo                                jooooVVVUUUUVVVVVooojjjjjjjjjjjj
   UVoooooVVU                                 jV                                                    UVVVVVVUVUUUUVooo                               ojjjoVVUVUUVVVVVVoojoojjjjjjj
   UoooooVVU                                  oU                                                    UVVVoVVVUUVUUVojjj                              VoooooVUUUUUUVVVVoooojjjjjjjj jj
  UVVoooooVU                                  oU                                                    UUUVVVUVVVVUVVVojj                              VooooVVVUUUUUUUVVoooojjjjjjjjjjj
 VooooooooVVU                   U            VVU                                                    UV UUUVVUVUVVUVVoo                              VoooVVVUUUUUUVVVVVooojjjjjjj jjj
 o   joooooVVU                  V           VUU                                                  UUUVUUUUUVVUUUUUUVVoj                              jVooVoVUUUUUUUVVVoooojjjjjjj   j
  o    jjooVVUU                 j          jVVUU       VU   UU   U           U               U   U      UUVVVooVoj    o                             jooooVUUUUUUUUVVVVooojjjjjjjjjjj
   j     jjoVVU                            oVVUUU  VVj   joj       jjj  V   UVUUUUUVUU  UVUU VUooVUo                                                 jjjoVVVUUUUUUVVVoojj          j
   o       joVU                            VUU UUUo                       o oVUUVVVoVUUVVVVVVoj                                                       ooVVVVUVVVVooj
   V       joVU                           jVUVUUUV                         jjVUVVoooV Vjooooj                                                        joooVVojj
    U      jooVU                          oVUVVVoo      joVUUVoj             jojooVUUVVooj                oU   Vo                                     jjj
     U      joVU                   j      oVVVVUoj   jjoVU         oj         jjoVV  Uoj              V       UUUo
jV   U       joVUU                        VVVVUVo j joVUUUU     UUVVojj        jVU    Vo           oUUVUUUUUVUUVoj
   jjj        joVUU                       oVVVUoVVjjoUUVoj                     jV      Uj
   jj          jooVU                U     VVVVVUVVVVVV                         jVU    UVo             V
ojj              joVVU                    oVVVVVUVUUo           V          UUVoVVVU    V        j   jjU joUo o  V
Voj                joVUU             V   joVVVVUUUUVojoVUV   UU   UjoojoVUU  UU VU     U       oVoVVV       VoVo oo
Uoj                  joVU            Uj   ooVVUU   UU   oooVUVU  Voj     joUVUU V               j j jooVV   UUVVV        joj   j
 Vo                   joVU           UUV  oooVVU        UVojj        joV       U       V        oooojooo             oVVooVj joj
 UVoj                 jooVU          UU o oooVVU             U              U U        o        jVooVVVUUUUUVVVoVVUU  UVojojjoj
 UVoj                  joVUUU        UV   oooVVUU                            U  U      V          VoV                UUVVVjjVjjjj
UUVVoj                 jooVUUUUUU    oo   ojoVUU                            V          V          jVVU U             UVVVooj jjj
UUVVoj                  jooVUUUUUUUUUUV U oojoVUU                          U           oj         oV                 UUUVVVVojj

WWWWWMWWWWWM        K&K&&&MMMMWWM&
WWWWMMWWWWWWW&      MM&&&&MMMWWWWWWWWMWW&K
WMMM&&&MWWWWW&      &MMM&K&MWWWWWWWWWWMM&K
WWM&K&KK&WWWW      K&MMMM&&&WWWWWWWWWWM&K
WMK  &&&&&&&W      &MMM&MMKMWWWWWWWWWM&K    KK              K KKK
W&   &MWWMMMW      MMMMMMM&WWWWWWWWWWWM&KKKK&K               KK&KK
M   KMWWWWWWW      WMMMWWMMWWWWWWWWWWWWMKKKKKK                KKKK
M    &MWWWWWW     &MWWWWWWWWWWWWWWWWWWMMMM&&&&              KK&&KK
W    KMWWWWWW    K&&           &K K K                       KK&KK
WW   KMWWWWWWK   &K     K        K         &
 &    K&WWWWWW   KK  K          &WM
        &MWWWWW  KKKK         K KWW      &
K        KMWWWW   K&&M&K     &MMMWW       K
&         K&WWWW  K&MMWMWWWWWW&MWWW     &MWMMMMK
KK         &&KK&   &MMWWWWWWWM&MMWM     MWWWWW&KKK
K          &MMK&  K&MWWWWWWWW&K &WM    KMWWWWWM&
&K          &MMW   &&MMWWWW&&&&MWWW     MWWWWM&
WK           KWW   K&&MWWM KWM           MWWMKK
W&                 &M&MW&KWWWMK         MMWWM&K
WWK               K&M&MM &        &       &&WMK
WW&                K&K&&         KW         &W
WM&                 KKKW&                   KW
&&&K                   &&&&K              MMM
KKK                     KK    K&KK

               ,.:,                          ::,,.         ,,
              ::.,                                  :..    ,,,
                                                     :,    ..
                                                      ..
              , .                                     ,
               .                                    : :
              , ,
             .:                                     :
                     ,,:  .             .           :
                ,          ::         .        :.,:  ,     .        , ,:
                         :,,..:     .  : :..,:    ::  .   ..       :.::.
                      :                        ,,     ,  :,,       ,:
                :                   ,                 , :: .:        : .
                                                      ,, ,:,         : ,
                                                      :,:,,,         : ,
                                    ..               ,..::,:         : ,
                                    .               :,., :,,:        : .
                                                    ::.,:  ,:        :,.
                                                    :::.   .,:       :..
                              :,    :,:             ::,    .,,:      :,.
                          ,           :, ::         ::,    ..,:       ,,
                           :::    :.      ,        : ,,     ..,:     :::
                               : ,,,..,:      ::    : ,       .,:   ..
                                              .    :. :        .,:  .
                   .                         :,   ,. .,        ..,: :.
                   : .         : .  ,        .,,..   .,         ..,,.
               : :::   ,,                  :. ,    ...,        ......
             ::::::    .                  ,       ....            ..
        :::::::::::     ,  ,    :   : ,..        .....

             *     <                        <                 <
                                                 }~~
               ~<<*                                }*  ~
                 ~                                *<}*     ~
             <                                   }*~*
             <  ~                                 <~ ~
             ~   ~                                }~
                 }                                 <
  <                        ~*          *        ~**<       ~        }}
  }*                *<       <       *   *    <    <~          }}**<
   *            ~      }<               ~     **~*  ~<      ~*}}}}*
  }**}          <    * <*<~}<        ~ }   <**   *<<<<      ~<*}} <  <<
  }****}                           * *       **     *<    ~  <** }~~< <
   ****}                           }*<*             *~  *   <**}}*<<~ <
   }}*}}                            ~<<             <~      ~*}}}}*<~ ~
    }}}}}                             <            }<       ~**}}}**~ ~
   }}}}                              }~*           *    ~    <*}}}}*< *
   }}}}                       ~~} *                *         ~<}   }<
   }}}*}}                              }           <          <*    *
    }}**}}    }            }<~  ~  <   *          }<           <}   }
    }}****}}}}           < ***<*    }<  ~  *   }} *~           ~*}  *~
     ********}}  }        *   ~ *~         *   ~}}< ~           ~*}}*
     }*<*<<*<**} *}          ** }       }       **~~             <*~  ~~
      *<<<<<<<<<<<~}                   }     ~ ~<<~               <<
      }*<<<<<<<<<<~ < }}      *}} }}*<<*}   *  ~~~                 ~
       }*<<<<~~~~~~   <**            *}}} }<~
      }*<<<~~~~ ~   ~    *       }**      *
   }}}*<<~~~~      ~      ~}       }}   <~
 }}*<<~~               }    ~<*< ~<* ~

            U                     VooVVVoooj                   VVoooojjj
                  jU                      VoojUoo             VVVVoooooj
                   U                      VoooVoojj          oUUUVVVoooo
             j    V                      VoVoUUojj          VUUUUUVVoooo
   UU            oU                     UUUU  Ujj    o     o U   UVVVooo
  UVU            jV                           Vjjj         VU     VVVooo
 UVU              V                           Uojj         UUU    UVVVVV
 jVUU                                         UVjoj        U      UUUVVV
 o jV               V        VU  U U UV                          Uoj  jo
    o              U  jU Vo   jVU UVo     U Uj              Voj
o o jV        o    Uo U        j   j
Vj    oU                     j U   j  o U j                      j
 o      o      o U      UUVoV         VUUU Uo  UVVVo            j
 Uj     oU      UV                     U        UVVo
  V     jVU     jVU                V   U          Vj
 Uoj     oU     oV             U   V            UUV
  o    jjjoV    VoU                V           UVoj
  o    jjjooU   oVU       U      j      U      UVoj             jjj
  V      jjjjooojVU            Uo              UVVj             jjjj
   j      jjjj joV      U U      U      jU     Vjo               joj
   o          jojoU     U       o  U          U  j                jj
   Uj          oj VU     V     j              j
    V           j  oVUV     V            U   U
   UVj              jjoo  UVUo    VUVjj jooUU
UVUVoo               j  oUUUVj   j       jjj
Voooojj                  oVVVoj          j
oojjjj                    oVUVVjj   ojoojj
jjj                         VoojoVj  joj
j