To get in the mindset of economics, watch the video "I, Pencil" first and/or read the article that it is based upon. This primer will give you a sense of how economists see the world. The six-minute video is exceptionally well done and left me awestruck all over again even though I've read the story several times.
Economics in One Lesson by Henry Hazlitt
This is probably the first full-length book that a person should read if new to economics. It is written in accessible language and I imagine it is widely used as default recommendation to anyone who is interested in economics.
The Fatal Conceit by F.A. Hayek
Possibly F.A. Hayek's most well-known book, The Fatal Conceit talks about the folly of a group of individuals (government) assuming that they can forcibly construct a better work by social engineering (i.e. legislation).
Economic Sophisms by Frederic Bastiat
One of the early champions of free markets, Frederic Bastiat fought against the protectionists of his time that promoted mercantilism (exports = good, imports = bad) by trade barriers. While protectionism is largely a dinosaur in the modern world, it persists just enough that Bastiat's work remains entirely relevant.
The Candlemakers' Petition by Frederic Bastiat
A chapter of Economic Sophisms that, by way of analogy, explains why trade is a boon to society and why barriers to trade are such a curse.
The Wealth of Nations by Adam Smith
The book that started economics as a field of study, Adam Smith's Wealth of Nations ought to be at the top of any required reading for econ list but for its dense and often inaccessible language.
The Economic Organization of a P.O.W. Camp by R.A. Radford
An interesting article about the natural emergence of both a trade economy and a monetary system during World War II, how a prison camp behaves as a microcosm of society as a whole.
The Island of Stone Money by NPR
In the same vein as the Radford piece, this is a short audio segment of an NPR show that talks about an interesting part of the world with stone money and indirectly speaks to how fiat money comes about.
The Pretense of Knowledge by F.A. Hayek
One of the more famous speeches in economics, this is F.A. Hayek's given for his Nobel Prize acceptance. The thesis: we know less than we imagine and ought not to think too highly of ourselves.
The Law by Frederic Bastiat
One of Bastiat's most famous books dealing with why there is law and an early defense of free markets against social engineering.
The Armchair Economist by Steven Landsburg
An interesting read by a University of Rochester professor speaking broadly and in accessible language about how economics impacts our everyday lives.
Blogs:
The Unbroken Window
Division of Labour
EconLog
Cafe Hayek
Freakonomics
Marginal Revolution
