ECONOMICS IN ONE LESSON

June 25, 2010

ECONOMICS IN ONE LESSON

The best book I know of to learn the essentials of free market (Austrian) economics is: “Economics in one lesson” by Henry Hazlitt. It is written in plain English without jargon, graphs, charts, statistics or math. Even I can understand it. I believe it is essential that we all understand economics, for it is in this battlefield that governments rob us of our income, wealth, and freedom. The book is available at http://mises.org/store/ for $12

The book teaches simply that to understand any economic choice, it is necessary to consider all effects on all people, both short-term and long-term. This is not much of a problem for you and me in our own individual economies; we generally do it automatically. The problem arises in macroeconomics, when government intervenes with some law or ruling which affects many people. Most such interventions are driven by pressure from lobbyists for special interest groups who hope to benefit from a change.

Here are some government policy fallacies exposed and explained in the book:
Public works to relieve unemployment.
Taxes that discourage production.
Cheap Credit that diverts production.
Spread-the-work schemes.
Protective tariffs.
Mercantilism.
Saving the X industry.
Commodity price stabilization.
Price controls.
Rent Control.
Minimum wage law.
Inflation.
The assault on saving.

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