Customer Reviews

Economics in One Lesson

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I read this book as a college grad fairly ignorant of economic matters. It completely changed my world view. Perhaps that sounds hyperbolic, but the common-sense lessons about human thought and action in this small, easily digestible book have materialized in virtually every aspect of my life, from the obvious, such as my views on political policy, to the obscure, such as my relationships and my satisfaction with my own choices. Hazlitt is never heavy-handed; he comes over as extremely objective because he doesn't need to convince anyone of his views. He is confident that anyone who takes the time to read, consider, and understand true economics would be hard-pressed to reject the logical conclusions he offers.

The book essentially springs from the premise that economic fallacy results from considering the effects of a policy or action only on a specific group or over a short period of time. From this he goes on to explain how such fallacies have invaded every single sphere of public policy. While before I vaguely opposed the idea of public works projects, tariffs, and welfare, I had no reasoning to back up my thoughts so I rarely expressed them. Hazlitt's book, instead of arming me with political doublespeak, provided me with the solid theory to truly understand why things that seem hard to argue against--kickbacks for hardworking but suffering farmers, for example-- are really counter productive. I recommend this book for people who hail from any economic class or political party; it won't offend you, and will do nothing but make you more informed and better equipped to understand the world around you.

The authors who understand the subject really well are able to explain it in simple and easy to understand language. This is what I feel that this book is all about. The author explains the economy in one lesson: policies should take into consideration the long-term consequences as well as short-term, and they should consider the effects on all groups, not just few. Wow, so simple, but unfortunately this is not how our policy makers think.

I think that high school students should read this book before they enroll in economic courses that bore them to death with all the graphs and mathematical calculations. I really appreciate that this book is simple but to the point - even junior high school students would understand it. I highly recommend it.

- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

This book in no way should be read by any 'progressive' who wishes to remain one! If you read with any openmindedness at all, you will be moved inexorably toward an appreciation of the ability of the free market to improve the lives of people in any society that values and practices it. Your faith in government to solve economic problems will be shattered as you begin to see how non-market 'solutions', no matter how well intended, exacerabate these problems in the real world.

Written over 60 years ago, Hazlitt's work is remarkably prescient and applicable today. Along with very relatable examples, I found his reasoning to be clear, concise, and sound. It is very readable and understandable for non-economists. Seems the economic fallicies that people mistakenly believe today are essentially the same ones from 1946, or 1846, or 1746...or for that matter... from 46. Just slap a new coat of paint on 'em and your ready to fool a whole new generation of victims. In this respect, Hazlitt makes a great paint stripper.

Hazlitt's Economics in One Lesson is an excellent primer in Austrian school economics. The material is sound enough to serve as an introductory college-level text, while the writing, logic, and language is accessible enough that one need not be a student of economics to find the lessons useful. Hazlitt begins by exposing basic fallacies of taxes, wealth, and government programs and continues by exploring more specific programs such as farm subsidies and tariffs. Hazlitt's thesis is that by focusing only on the short-term effects a particular economic policy has for a certain group one ignores the long-lasting and multi-factorial effects that policy has on any number of unseen groups who are not directly involved in the policy. Beginning with the classic broken window fallacy Hazlitt explains in basic terms how the true effect of some economic programs is to transfer production from more efficient economic sectors to the less efficient, thereby weakening the economy as a whole. Hazlitt's writing is effective and confident without being denigrating to those whom he argues against. Although Hazlitt mentions throughout the text that his purpose was not to bloat the book with charts and statistics, when he employs these sorts of facts to support his arguments his presentation becomes that much the stronger and easier to understand; so, one could wish that he had chosen to use them more often. His logic does not suffer for their absence, though, and Economics in One Lesson remains an excellent, quick read for anyone seeking a greater understanding of basic economic principles.

Sure, a few of the specific examples cited 60+ years ago are no longer relevant today, but the basic lessons are absolutely and permanently valid and need more than ever to be understood by at least a majority of the voting public.

The sad fact is that Americans can go through the entire public school system and "higher education" without learning the first thing about economic science (while getting bombarded with self-serving economic propaganda). Thus public gullibility to the fallacies cited by Hazlitt seems no less pervasive now than back then, while the resultant cancerous growth of government economic meddling has only increased.

Here's a revolutionary fantasy: Make this book a required study by all high school students. Imagine what that would do for the kinds of politicians who get elected in the future.

BTW, you can get the nice hard-cover edition at less cost directly from the Mises Institute.

For all who avoided economics like the plague, this is the book for you.
very informative, and gives the novice a good foundation of the subject... Check it out.. next time you argue economics with uncle Fred, you wont sound like such a dope

This classic test is clear, convincing, and sorely in need of re-reading in the era of "economic stimulus bills"

I know it sounds stupid. I know it sounds extreme. I know it sounds ridiculous.

But this book REALLY DID change my life.

I used to be a bleeding-heart liberal: "the government has to do X, Y and Z".

This book showed me how wrong I was. How so VERY wrong I was.

This book should be mandated reading in all schools.

This is an edited version of a review that I'd previously removed. People didn't feel the first version was helpful, a fact which I suspect to be due to two possibilities, depending upon the individuals involved. For one thing, it was very long. For another, although it praised Halzitt on many points, it was not an obeisant psalm that accepted without question every single thing he asserted (this was the problem for one highly emotional commentator).

So out of sensitivity to the preciousness of readers' time, I offer a shorter version. I am, however, still a skeptic and agnostic when it comes to economic schools of thought, so if you worship at the alter of Smith (or even Marx, Keynes, or indeed, any of the august minds that have turned their hand to this soft science), I'm afraid this review will not be for you.

Economics In One Lesson (written in 1946, re-published with some updating in 1978) was intended as a layman's introduction to free-market arguments against the continuation of New Deal policies in the postwar era. Halzitt writes beautifully, always respecting the intelligence of the reader. He neither inundates with professional jargon nor clutters up the pages with tons of tables and graphs. He explains and illustrates thoroughly yet not exhaustively. The result is a highly approachable work that has remained popular for decades.

Hazlitt's arguments are cogent and it is easy to find plenty of merit in them. However, they are often strongest where they are obsolete. His descriptions of how credit works are downright touching in their quaintness (think: the Bailey Building and Loan in "It's a Wonderful Life"). In EIOL, there is nothing resembling the kinds of byzantine credit shenanigans which have caused so much trouble of late.

Another weakness of the book is that many of the claims made in the original were not re-visited in 1978. Halzitt complained in '46, for example, that the GI Bill was extending credit hither and yon without the tough standards necessary to protect the investment. Halzitt failed to add a footnote in the '78 version letting us know how his dire predictions of mass default turned out. Readers are left to speculate that perhaps the catastrophe never materialized.

On the fundamental level, Halzitt falls prey to the quintessential free-market fallacy - an unshakable belief in self-interested rationalism on the part of the capital class. But of course contemporary readers know that racism, sexism and other psychological blind spots historically prevented otherwise worthy credit risks from receiving a fair shake and that government interventions of various kinds have been required to address the problem. Halzitt acknowledges none of this.

Finally, historical experience has not been kind to Halzitt's view of things. Halzitt recommends deregulation and unqualified tax cuts for corporations and the rich. They will re-invest in the market, we are told, and the economy will grow. New businesses will come into being or old ones will expand. Jobs will appear, production will rise, more money and goods will come into circulation and everyone will be richer. Reaganomics used the term "trickle down theory."

But under Reagan, things did not go quite as planned (corporations and the rich found other uses for their increased funds) and by the end of George H. Bush's only term, we were deep in recession. Further deregulation under Clinton and Bush II does not seem to have been much help in building economic sustainability.

Perhaps this book's greatest strength lies in teaching critical thinking about economic thought itself. While Hazlitt's specific critiques against continuation of the New Deal and the abuses of unionized labor did have merit, it is his general thesis - that selfish interests will blind people to some important aspect of any given policy's total outcome - is unassailably true, with a capital T.

Just remember to turn the same critical eye upon Hazlitt, too.

I have read multible books about economics and this one is the best by far. It brings home the common sense of economics. I would like to see this book made part of every high school curriculum and It would be a great gift to our congressman and our president.