Economics in one Lesson - The shortest and surest way to understand basic economics

Összefoglaló

The key to “the art of economics” is the ability to see not only short-term effects of public policy but also broader, long-term effects on the economy as a whole. With this basic concept, Hazlitt launches into an explanation of laissez faire economics. He traces examples like a storeowner’s broken window through the threads of the common fallacy, then reveals their flaws in this classic, brilliant breakdown of basic economics. He walks us through the hidden effects of interference with natural market forces and denounces the idea that government spending can “fix” an economy.

Hazlitt discusses how price control destroys the natural balance of an economy and how minimum wage laws “might be most harmful to the very industries they were designed to help.” He questions whether unions are effective in their mission to raise wages or whether they too hurt their own cause. He cautions against unnecessary fear of fluctuations in the value of money and exposes how taxes depress the economy by reducing incentive to produce.

Economics in One Lesson is a time-tested account that effectively illustrates the overlooked simplicity of the inner workings of a free market economy.