The book is organized quite simply. The first chapter is the one lesson. The following chapters apply the one lesson to various situations such as taxes, tariffs, price-fixing, minimum wage laws and unions. The lesson is simple,
Most of the time secondary consequences are ignored or overlooked. People focus on the immediate consequences for a particular group and ignore the impact on other groups. Or perhaps politicians point out the immediate impact of one policy, while ignoring what will happen later.The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups. (Economics in One Lesson, pg. 17)
Sometimes it is human nature. We saw this in Katrina's aftermath. When prices soared and people were angry, politicians jumped up to outlaw price gouging. But prices have a purpose, whether high or low- and help to dispense or limit resources as they are available. More on this later.
Next: The Broken Window Fallacy
11 comments:
Ironically, this ties in well with your previous post. Society often forgets to tie in the long term consequences of casual sex.
I'd say I can't wait to hear more, but...it's economics...so...
Haha, just kidding! :)
Hmmm, this might be good for me and for my daughter to learn!
Good for you Lauren for learning this stuff! You inspire me to branch out from fiction. The hubs read this book last year for "fun"...haha... ;)
I just finished reading this book a few days ago. It's a great book and a pretty easy read. I want to make all of the government officials read it. It's crazy that 65 years later they still haven't gotten it.
As I learn more about Leadership Education, I learn that I have so much more to learn. My hubby has recently started educating himself on economics. I may skip some of his large, in-depth books, though, and pick up a copy of Hazlitt's.
I'm Cheryl's husband Dennis.
I can also recommend Thomas Sowell's "Basic Economics." It's written so clearly and with such great examples. You'll find yourself pausing to scream in agreement or laugh at the strange interpretations other have of basic economic principles.
Economics has an amazing gravitational pull. It must be its relevance to our individual destinies and liberties, and to the successes, failures, and conflicts of the world's states throughout history. Simple truths that affect us with strong consequences.
Great learning curves for economics are Dave Ramsey, Maybury's Uncle Eric series of books, the aforementioned Thomas Sowell, Hayek, Von Mises, and history itself (read Churchill's summary of the intra-war period in "The Gathering Storm" and you'll get an economics lesson).
I especially enjoy Thomas Woods' series "The Truth About American History," available on Von Mises.org and iTunes U.
Hi Dennis! I think our economic philosophies are pretty common! (I do recommend Dave Ramsey- but only for those getting out of debt. I take none of his retirement/investing advice!) Thanks for the recommendation of Thomas Sowell's book. I do like Sowell! I've ordered the Road to Serfdom by Hayek and hope it get here today! I didn't catch that series on the history channel, but have his book The Politically Incorrect Guide to History and thoroughly enjoyed it. What an eye-opener!
I have a gadget towards the bottom of this blog with a list of books I'm trying to read in 2011. Thanks for the recommendations!
PS: Did I ever thank you for the blogroll?? :)
Lauren, I'm new to your blog, but I noticed the "thread" on infertility. Are you aware that at least one in 16 women with unexplained infertility has undiagnosed celiac disease and a change in diet can change everything? Please see this abstract on a recent study about latent celiac disase and reproductive health: http://www.fertstert.org/article/S0015-0282%2810%2902775-5/abstract
A caveat, though, celiac testing is not especially accurate. Dr. Kenneth Fine explains it very well here: http://www.celiac.com/articles/759/1/Early-Diagnosis-of-Gluten-Sensitivity-Before-the-Villi-are-Gone-by-By-Kenneth-Fine-MD/Page1.html
Hoping to help, Cheryl
Cheryl- thank you so much for your thoughtfulness. I'll check it out and discuss it with my doctor, though I show zero symptoms of celiacs, it's worth checking out! Thank you so much!
Lauren, infertility by itself is a symptom of celiac disease. Most people think in terms of digestive symptoms, but celiac can present in hundreds of ways. I've spent eight years researching the subject. I'd love to answer (at least try) any questions you might have. Please send me an email via the contact page on my website: www.ruffedgedesign.com
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