Economics in One Lesson

Economics in One Lesson – Henry Hazlitt

1. Full Citation

Hazlitt, H. (1946) Economics in One Lesson. New York: Harper & Brothers.

2. Introduction

Economics in One Lesson is a classic introduction to economic principles aimed at clarifying common misunderstandings and promoting sound economic reasoning. Henry Hazlitt argues that many economic fallacies arise from focusing solely on immediate effects rather than the long-term consequences and impacts on all groups. The book simplifies complex economic concepts, making it accessible to a broad audience, and advocates for free markets and minimal government intervention.

3. Author Background and Credentials

Henry Hazlitt (1894–1993) was an American journalist and economist known for his lucid writing and advocacy of classical liberalism. He contributed to publications like The Wall Street Journal and was influenced by the Austrian School, especially Ludwig von Mises and Friedrich Hayek.

4. Summary of Contents

The core lesson is that good economics considers both immediate and secondary effects:

  1. The Broken Window Fallacy
    • Illustrates how destruction does not benefit the economy, debunking popular myths about spending and jobs.
  2. Government Intervention
    • Critiques price controls, subsidies, and tariffs as distortions that ultimately harm economic welfare.
  3. Savings and Capital
    • Emphasizes the importance of savings for investment and long-term growth.
  4. The Role of Profits and Losses
    • Explains how profits guide resource allocation efficiently.
  5. Inflation and Monetary Policy
    • Warns against excessive money printing and its consequences.

5. Critical Evaluation

a. Coherence and Argumentation

Hazlitt’s arguments are logically consistent and illustrated with practical examples.

b. Originality and Intellectual Contribution

While rooted in classical economics, the book’s clarity and pedagogical style make it uniquely influential in popularising economic literacy.

c. Evidence, Sources, and Method

Employs logical reasoning and historical examples rather than formal empirical research.

d. Style and Accessibility

Highly accessible and engaging, designed for non-specialists.

e. Limitations and Critiques

Some critiques note an ideological bias favoring laissez-faire economics and minimal government.

6. Comparative Context

Compared with:

  • Adam Smith’s Wealth of Nations – More accessible summary of Smith’s ideas
  • John Maynard Keynes’s General Theory – Contrasts by opposing Keynesian interventionism
  • Ludwig von Mises’s Human Action – Shares Austrian economic perspectives

7. Thematic or Disciplinary Relevance

Relevant to:

  • Basic economic literacy
  • Classical and Austrian economics
  • Public policy and economic reasoning
  • Educational resources in economics

8. Reflection or Practical Application

The book equips readers with tools to critically evaluate economic policies and claims, fostering sound economic decision-making.

9. Conclusion

Economics in One Lesson remains a foundational, concise primer for understanding fundamental economic principles and debunking common fallacies.

Recommended for: Students, educators, policymakers, and general readers seeking economic clarity.

10. Other Works by the Same Author

  • The Failure of the New Economics (1959)
  • The Inflation Crisis and How to Resolve It (1978)

11. Similar Books by Other Authors

  • Milton Friedman – Capitalism and Freedom
  • Thomas Sowell – Basic Economics
  • Ludwig von Mises – Human Action
  • Friedrich Hayek – The Road to Serfdom

12. References (only if external works are cited)

  • Hazlitt, H. (1946) Economics in One Lesson
  • Friedman, M. (1962) Capitalism and Freedom
  • Sowell, T. (2000) Basic Economics
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