Henry Hazlitt

Economics in One Lesson

1. IDEA 1

   Look at all the effects

   Hazlitt's one lesson is that good economics looks at the long-term effects of a policy on all groups, not just the short-term effects on one group. Many bad policies, he argues, come from ignoring the hidden consequences.

2. IDEA 2

   A broken window creates no wealth

   Hazlitt retells the story of a broken shop window. Some say it helps the glazier, but Hazlitt points out that the shopkeeper now cannot spend that money on something else. Destruction does not create real wealth.

3. IDEA 3

   Public works have hidden costs

   Government projects create visible jobs, but Hazlitt argues that the taxes paid for them reduce spending and jobs elsewhere. These unseen losses are often forgotten. The bridge is seen; the lost jobs are not.

All 8 ideas from Economics in One Lesson →