Economics in One Lesson

''Economics in One Lesson'' is an introduction to economics written by Henry Hazlitt and first published in 1946. It is based on Frédéric Bastiat's essay ' (English: "What is Seen and What is Not Seen").

The "One Lesson" is stated in Part One of the book: "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." Part Two consists of twenty-four chapters, each demonstrating the lesson by tracing the effects of one common economic belief, and exposing common economic belief as a series of fallacies.

Among its policy recommendations are the advocacy of free trade, an opposition to price controls, an opposition to monetary inflation, and an opposition to fiscal policy, such as stimulative governmental expenditures, arguing:

"There are men regarded today as brilliant economists, who deprecate saving and recommend squandering on a national scale as the way of economic salvation; and when anyone points to what the consequences of these policies will be in the long run, they reply flippantly, as might the prodigal son of a warning father: 'In the long run we are all dead.' And such shallow wisecracks pass as devastating epigrams and the ripest wisdom."

Publication history

In a paperback edition in 1961, a new chapter was added on rent control, which had not been specifically considered in the first edition apart from government price-fixing in general. A few statistics and illustrative references were brought up to date.

In 1978, a new edition was released. In addition to bringing all illustrations and statistics up to date, an entirely new chapter on rent control replaced the previous one of 1961, and a final new chapter, "The Lesson After Thirty Years," was added.

In 1996, Laissez Faire Books issued a 50th anniversary edition with an introduction by publisher and presidential candidate Steve Forbes.

The book has been translated into many other languages, such as Spanish, German, Russian, Chinese, Korean and Greek. In particular, the Madrid-based Spanish publishing house Unión Editorial, which traditionally publishes books in Spanish language in defense of market economy and liberalism, released ''La Economía en una lección'' in 1981, 1996 and 2005. A German edition, titled ', was first released in 1983 by Poller in Stuttgart. In May 2009, it was reprinted by Olzog.

Reception

''Economics in One Lesson'' made the ''New York Times'' best-seller list, but quickly fell off since only 3,000 copies were printed. It has since sold over a million copies and is considered a classic by several American conservative, free-market, and libertarian circles. When Ronald Reagan was giving speeches to General Electric plants in the 1950s and 60s, he read ''Economics in One Lesson'' which helped influence his economic philosophy. ''Economics in One Lesson'' was an important work for the development of neoliberalism in America.

Friedrich Hayek praised the work, referring to it as "a brilliant performance...I know of no other modern book from which the intelligent layman can learn so much about the basic truths of economics in so short a time."

German-American economist Ferdinand A. Hermens wrote: "presidents and cabinet members...could learn a great deal if they would read Hazlitt's book and ponder its implications." French economist Charles Rist referred to the book as a "masterpiece." The '' Peabody Journal of Education'' called ''Economics in One Lesson'' " e of the best books published on practical everyday economic."

Nobel Prize laureate Milton Friedman stated: "Hazlitt's explanation of how a price system works is a true classic: timeless, correct, painlessly instructive." Bob McTeer, an economist and former president of the Federal Reserve Bank of Dallas, described ''Economics in One Lesson'' as a "wonderful book...If you don't have time to read Bastiat's collected works, try Hazlitt's book." Pulitzer Prize-winning journalist Edwin A. Roberts Jr. wrote: "Fifty years have passed since the book was first published...and it continues to stand as the clearest introduction to what to me is the most engagingly complicated of all academic disciplines. The beauty and strength of Henry Hazlitt's "Economics in One Lesson," of course, is that he uncomplicates the essentials of his subject, and he could do that because he knew vastly more than he put into his book, and he was so facile in his use of language that the writing as well as the content gives pleasure."

Author Tom Butler-Bowdon included ''Economics in One Lesson'' in his '' 50 Classics'' book series for economics. Philosopher Joseph Heath wrote that ''Economics in One Lesson'' is "a book that is as valuable today as when it was first published in 1946...Hazlitt's book should be essential reading for anyone interested in knowing which way is up and which way is down in the world of economics," though Heath criticized Hazlitt for being overly ideological about free-markets. Law professor and economics writer James Kwak wrote that "Hazlitt's portrayal of economics as both easy and powerful was highly seductive."

In a review in the ''American Economic Review'', the book was described as "a vigorous, skillful, and provocative challenge to sophisticated formulations of theory and policy," however "the lesson as a whole is too easy, and the "common-sense" answers are really answers only because the basic problems have been oversimplified so much as to divorce them from the complex reality that confronts us today." A review in the ''Annals of the American Academy of Political and Social Science'' agreed with Hazlitt's arguments on the need for greater productive efficiency and the effects of deficit spending but believed monopolies were overlooked in the book. Whereas a review in the ''Financial Analysts Journal'' stated: " e by one the bulwarks of the New Deal are assailed and found wanting. Though the book is small and the lesson short, the afterthought will be long and prolific."

Economist J. Bradford DeLong said Hazlitt's book well states the classical view of economics but does not properly address arguments made by Keynesians. However, in 1959, Hazlitt published '' The Failure of the New Economics'', a detailed, chapter-by-chapter critique of John Maynard Keynes' arguments.

Ralph S. Brown, a law professor, also stated that Hazlitt effectively articulates the principles of classical economics on matters such as tariffs, one-way foreign trade, parity prices, and purchasing-power theory. However, Brown criticized Hazlitt on his concept of equilibrium, price systems, and depressions. Post-Keynesian economist Abba Lerner calls it "one of the finest attacks on topsy-turvy economics", but says Hazlitt should more seriously "consider the possibility of an economy suffering from unemployment".

Bibliography

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References

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External links

Mises.org
(PDF)

The Foundation for Economic Education
(PDF)

Unión Editorial, publisher of the Spanish translation

An abridged audiobook version

1946 non-fiction books
Books about capitalism
Books by Henry Hazlitt
English-language books
Harper & Brothers books
Economics textbooks