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Economics in One Lesson: The Shortest & Surest Way to Understand Basic Economics

Posted by ObjectiveAnalyst 10 years, 1 month ago to Books
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Economics in One Lesson: The Shortest & Surest Way to Understand Basic Economics

Book Review, by O.A.

Author, Henry Hazlitt ISBN 978-0-517-54823 214 pages.

This is Econ 101 from the Austrian school. It is a great beginner book and an easy read.
The book was endorsed by Ayn Rand- “A magnificent job of theoretical exposition”
It was also endorsed by Milton Friedman and F.A. Hayek.

At only 214 pages, written in a way that conforms and reminds one of Frederic Bastiat and F.A. Hayek your time could not be better spent. It is brilliant in its clarity and recognition of not only short term, but also long term consequences of economic policy.

It was first published in 1946 and most recently updated in 1979. Yet, it remains as applicable as ever.

An Excerpt:
“In brief, the main problem we face today is not economic, but political. Sound economists are in substantial agreement concerning what ought to be done. Practically all government attempts to redistribute wealth and income tend to smother productive incentives and lead toward general impoverishment. It is the proper sphere of government to create and enforce a framework of law that prohibits force and fraud. But it must refrain from specific economic interventions. Government’s main economic function is to encourage and preserve a free market. When Alexander the Great visited the philosopher Diogenes and asked whether he could do anything for him, Diogenes is said to have replied: “Yes, stand a little less between me and the sun.” It is what every citizen is entitled to ask of his government.”

The big takeaway is that while many are awakening to the economic realities, progressive leaning Keynesians and New Dealers still exist and have not learned the lessons. They will not give up their failed policies that provide them with power easily. We will have to replace them with people of proper economic understanding and integrity.

I highly recommend this easy read for the beginner and also as a refresher for the well versed.

Happy reading!
O.A.


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  • Posted by $ HeroWorship 10 years, 1 month ago
    A truly brilliant book. The Broken Window - unseen costs. An idea that, the more you understand it, the more powerful your insight into every political/economic issue. Also, an idea that, if you fail to understand it, leads to disastrous consequences in logic and policy.

    An absolute MUST read for anyone who is even halfway serious about politics.
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  • Posted by Zenphamy 10 years, 1 month ago
    They've learned their lessons all too well. If what someone is doing doesn't match the reason they give to do it, then you need to either look for why they're really doing it, or check them for insanity.
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    • Posted by 10 years, 1 month ago
      Hello Zenphamy,
      Yes. Either they are ignorant, or they don't care because it feathers their own nest or feeds their power trip/egos. And they have the audacity to call Free-marketers and Objectivists greedy.
      Regards,
      O.A.
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      • Posted by $ jbrenner 10 years, 1 month ago
        Definitely it feathers their own nests and feeds their power trip/egos. They likely are ignorant, too, but I think some of them actually do understand and willfully appear to be ignorant.
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  • Posted by Herb7734 10 years, 1 month ago
    It has been my basic guide for many years. It's a must for anyone wanting to have a clear understanding of economics.
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    • Posted by 10 years, 1 month ago
      Hello Herb7734,
      This was my first Henry Hazlitt book. It will not be my last. I have read many, many other economists' works, from Adam Smith to Thomas Sowell, but Mr Hazlitt has impressed.
      Thank you for your input.
      Regards,
      O.A.
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      • Posted by Herb7734 10 years, 1 month ago
        He has also written a novel meant to illustrate the differences between capitalism and other forms of governance. It's called "time Will Run Back." It is somewhat stilted and dated but an interesting read, if you can find a copy.
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  • Posted by nsnelson 9 years, 6 months ago
    I definitely agree with your recommendation. It is written so clearly, everything seems to be common sense. Each chapter is short and concise, and ordered in a logical progression (or at least most chapters expand on the previous).

    For fun, I wrote my own summaries of each chapter (up through the minimum wage), and posted them to Facebook. A few of them were ignored; most of them generated some good discussion. None of them were met with any serious challenge (and most of my friends are quite liberal).
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    • Posted by 9 years, 6 months ago
      Hello nsnelson,
      Glad you enjoyed it. I am currently reading some very difficult and boring philosophy (Locke's On human Understanding). I may eventually write a review on it, but I am not sure I will give it high recommendation. The material is generally epistemology, was probably quite instructive in its day, but the prose is very difficult and it has put me to sleep so many times it is taking forever to get through it. :)
      Happy reading,
      O.A.
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  • Posted by salta 10 years, 1 month ago
    I highly recommend the audio version. Listen in the car.
    Its also easier to find time to re-listen, than to re-read something.
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  • Posted by rbunce 10 years, 1 month ago
    I have been reading some Modern Monetary Theory papers recently... interesting stuff... not sure if they just see processes used by governments with their own money and claim it is this theory at work when it is in fact some other theory with a few processes in common or these governments are really implementing it (or trying) and just not going fully public about it.
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    • Posted by 10 years, 1 month ago
      Hello rbunce,
      A shell game and governments are the game-masters and citizens are the pigeons.
      O.A.
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      • Posted by rbunce 10 years, 1 month ago
        Whatever the government fiscal/monetary theory the US Government is following it seems to have a lot of the elements of the MMT Theory.
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        • Posted by 10 years, 1 month ago
          Yes.The MMT theory... I am unimpressed with the notion that money can be printed endlessly without a standard of some kind besides faith in a system. It is a house of cards. Fiat money and its endless printing still leaves us with depreciating dollars and increasing interest that must be paid with devalued dollars. It sounds like a runaway train that must eventually jump the tracks. It is true that we haven't had an official "depression" since completely leaving the gold standard, but it does appear that other nations are now losing faith in the almighty dollar and will soon abandon it as the international currency. When that occurs, what kind of crash may we be in for? The future could hold a worldwide depression more devastating than anything heretofore seen... Once faith is destroyed how will they restore it? Too many questions...
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          • Posted by rbunce 10 years, 1 month ago
            Increasing interest to attract private buyers of our bonds but if we do not need private buyers... depreciating dollars because of inflation which has not been a serious issue yet... so far seems to work within the Country but good question about what happens when other nations no longer accept our money... of course we give quit a bit of money away and sell quit a bit of our private products/services and buy quite a bit and more of their private products/services and suspect our government and private entities may not be interested in doing business in anything but US dollars... whatever the merits that does seem to be the path or something similar that we are on.
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