Absolutely wonderful introduction to basic economics. Wish I read this twenty years ago. Probably one to read and enjoy every few years.

The whole book teaches you one lesson: to consider both primary and secondary effects of an economic policy, not merely in the short run, but in the long run as well.

It was an amazing read to be honest. Now, there are a couple of faults here and there about how he frames a certain situation just to fit his argument, which can never actually happen in real life. Hardcore economists will argue that he uses fallacy or whatever. But these can be forgiven, because for me the bigger picture here is to learn to analyze the consequences of an economic proposal, both from the perspective of A as well as B.

If you want to read about Austrian economics and hear about how Keynesian economists are out there in the night, conspiring to tax you and build useless bridges for giggles, then read this book. If you know anything about economics and think about what you're reading, you'll see an agenda. Many generalizations and exaggerations are made to portray advocates of Keynesian economics as moronic and simple-minded.
Hazlitt doesn't say the government takes money from the rich and give to the poor; he says they tax everybody in order to give money to a select few who profit at everyone else's expense.

"What is prudence in the conduct of every private family, can be a folly in that of a great kingdom."
This book forms a perfectly good guide and introduction to dummies to the field of economics. Henry, throughout the book has tried to elaborately coin economics in general to be the science of recognizing secondary consequences and tracing of effects of some proposed or existing policy not only on some special interest in the short run but on general interest in the long run.

Divided into three parts: the lesson, the lesson applied and the lesson after a given period of time. (30 years). This book provides a basic understanding of economics to anyone who's a newbie in the field.

Well, that was damn disappointing. The first few chapters actually had some decent stuff in them, although it was obvious the guy was pedaling a certain point of view rather than dispassionately laying it on the line. But by the end of the book it had just become ridiculous. The product being sold here is Classical Economics; capital C, capital E, which describes how an economy would ideally work if everybody pursued their own rational self-interest. At some point, Hazlitt should have slowed down and taken a deep breath. He recognizes very well the market distortions introduced by government and it's evil sidekick unionized labor, but corporations and businessmen get a pass in every instance. He absurdly says that "obviously" the one manufacturing the best mousetrap is going to make the most profit. In an ideal world, where all of us actually knew which mousetrap was the best, he would of course be right. There would be no need for this fortunate manufacturer to advertise, and it would be futile for other manufacturers to advertise either, because no one would be fooled into buying less than the best, no matter how slick the advertising. Nor has Hazlett seemed to have heard of a monopoly, because he says the only thing that is going to force prices higher than their market equilibrium would be a change in the supply vs. demand dynamics or an increase in the money supply.

I really should have known this book was going to be a bust when I saw an Ayn Rand quote on the cover: "A magnificent job of theoretical exposition." Well, perhaps. But as we know, the difference between theory and practice is that in theory, theory and practice are the same; in practice, they are not.

Hazlitt's book is a much-lauded primer on (classical liberal) economics that has been extremely popular in America and has been translated into numerous languages. It was written a long time ago, but since the follies of economic snake oil salesmen have remained the same, it hasn't aged much.

The complexity of the issues it deals with fights for dominance with the extreme readability with which it is written. Mostly the book succeeds in tackling difficult issues with style and grace. Due to this fact, the book can be recommended for even a complete novice with a modicum of intelligence.

The central message of the book is that economics is a deceptive simple, but far-reaching, science. Hazlitt lays out the argument for free trade, for supply and demand, for the dangers of inflation, for the dangers of government meddling into the economy, for the importance of the price system.

The only downside is the heavy emphasis on deductive reasoning. The book does not contain much of some of the newer types of economics, including experimental economics, positive economics, behavioural economics, Keynesian economics, etc. These are ALSO important aspects of the science, so it is not true to say that the book gives a comprehensive picture of what the science of economics is ALL about. Thus, for failing to deliver on the comprehensiveness promised in the title, and for being rather one-sided and even doctrinaire, I have to deduct one star.

But Hazlitt's pretty pamphlet is not, nor should it be taken as, a true "text book" of economics. This is an extremely well-written, ever-timely, comprehensive, compact and persuasive introduction to 80% of what's important in classical economics: the emphasis on long-term, unintended, and general consequences of human action.

The book lays bare the importance of relying on market mechanisms, rather than central planning, as the best means, even if not the perfect means, of balancing out, and eventually satisfying, human desires, wants, production, consumption, and - perhaps - happiness and virtue.

This book should be required reading in every econ 101 class in the country. It is written simply so that anyone can understand the concepts presented. And yet it provides a powerful antidote to the economic lies we are subjected to on a daily basis by unions, our political leaders, and the popular press.



In fact, to me that makes the book depressing. It was written in 1946 and yet we are still suffering under the same economic myths that the book addresses. We are all poorer because as a country we still have not learned the lessons that past experience should have taught us. The book is prophetic when it points out that gov't backing of housing mortgages would cause an oversupply of houses. The book also clarified for me how gov't spending fails to help the economy, because of course every dollar the gov't spends must be confiscated from the private economy.



Finally, the book reminds us that the true Forgotten Man is the one "who is always called upon to stanch the politician's bleeding heart by paying for his vicarious generosity." Words that could have been written last year instead of over 50 years ago.

To get the most thorough understanding of the basics of economics go read this book. Henry Hazlitt does a phenomenal job of pointing out the issues within Keynesian theory but also providing an accurate and clear comprehension of all aspects of government intervention and how and who it effects.

Also my favorite quote from the book:
"When Alexander the Great visited the philosopher Diogenes and asked whether he could do anything for him, Diogenes i said to have replied: 'Yes, stand a little less between me and the sun.' It is what every citizen is entitled to ask of his government."
-Henry Hazlitt, Economics in One Lesson, page 211

We are in the age of high inflation as the world faced the consequence of shutting down the economies around the world to fight the pandemic.

Now, more than ever, is the best time to read economics books and Henry Hazlitt's Economics in One Lesson is the first economics book I will definitely recommend to everyone.

Don't get confused with the title. the author has not provided all the concepts of economics in one only lesson. Henry Hazlitt has done a remarkable job in summing up major economics concept in short. Moreover, I totally agree with his subtitle the shortest and simplest way understand Basic Economics.
It will provide you with the basic understandings about economics. How the economy operates, the role of the government, the structure of markets and many other interesting concepts of economics. I will recommend this book to the students who want to learn economics at college level.

Written in 1946, this is a great summary of free market economics, from the broken window fallacy to public housing, tariffs, minimum wage, price fixing, etc.

“The bad economist sees only what immediately strikes the eye; the good economist also looks beyond. The bad economist sees only the direct consequences of a proposed course; the good economist looks also at the longer and indirect consequences. The bad economist sees only what the effect of a given policy has been or will be on one particular group; the good economist inquires also what the effect of the policy will be on all groups.”

“..either immediately or ultimately every dollar of government spending must be raised through a dollar of taxation. Once we look at the matter in this way, the supposed miracles of government spending will appear in another light.”

“Practically all government attempts to redistribute wealth and income tend to smother productive incentives and lead toward general impoverishment. It is the proper sphere of government to create and enforce a framework of law that prohibits force and fraud. But it must refrain from specific economic interventions. Government's main economic function is to encourage and preserve a free market. When Alexander the Great visited the philosopher Diogenes and asked whether he could do anything for him, Diogenes is said to have replied: "Yes, stand a little less between me and the sun." It is what every citizen is entitled to ask of his government.”

3.5/5 The one lesson here is that free-markets work. And that tinkerings like subsidies, price-controls, mindless focus on spending (vs savings) are short-sighted and fail to account for the secondary and long-term harmful consequences. Point taken. Seen so many examples in my own country India. Water and power are free - water-intensive crops are grown in semi-arid regions of Maharashtra and Punjab - prices of crops are fixed and guaranteed by the Govt - farmers are stuck - environment is degrading - electricity boards are bankrupt and mentally bankrupt are the “left-liberals” too, mindlessly opposing any reforms.
Hazlitt is considered to be from the “Austrian school of economics”. And while finishing the book i noticed a citation from Ayn Rand. While I am a fan, I am also aware of her limitations - she has dehumanised labour. And i think the author has done so too somewhat. We are born with both - unequal talents and unequal inheritances. The “left-liberals” do not understand the former and Hazlitt/Rand do not seem to understand the latter. Hazlitt has argued against minimum wages - surely all human beings deserve a reasonable standard of life - dignity, education and health ? There is a problem when “labour” is treated as dispassionately as capital.
Economics is not an exact science. And there are too many examples - from India’s demonetisation to the West’s massive free handouts during the Covid pandemic - of leading brains failing. I will be reading more by both Keynes and Milton Friedman !