Economics in One Lesson Essay

Words: 1997
Pages: 8

Economics in One Lesson
By Henry Hazlitt

Dan Gardner
History of Economics 360-001
Dr. Smith
March 8, 2005
Economics in One Lesson
By Henry Hazlitt

Henry Hazlitt's book, Economics in one lesson, brings to perspective numerous topics that are mainstream issues in the economy today. His book breaks down in detail specific concepts that have their effects on the economy. Hazlitt explains topics such as war and the expenses, the tariff system, and productivity and the minimum wage laws. One concept Hazlitt emphasized on was how economics was viewed for temporary needs, versus more permanently viewed. "In addition to theses endless pleading of self-interest, there is a second main factor that spawns new economic fallacies
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The government should not push to end unemployment of have the fetish for full employment; this would really just create a hard working poor person because they would not get paid that much. "The economic goal of an nation, as of any individual, is to get the greatest results with the least effort" (Hazlitt p71). If a business had to employ more then they need, they would have to cut wages to make sure everyone received payment. Many institutions have fully employment, but that does not mean that it is in the best interest of their employees. Prison chain gangs have full employment just as slaves have full employment. The truth is that the employees under this status probably have a better chance for making more money not being employed then working. The point Hazlitt made on tariffs seemed a little weak. He said that labor productivity is reduced as a result of a tariff and American wages also reduce because of the tariff. It seems if he was trying to say there is no need for a tariff because it causes more harm in the long-run. "It is true that the tariff hurts all consumers as such. It is not true that it benefits all producers as such. On the contrary, as we have just seen, it helps the protected producer at the expense of all the other American producers, and particularly of those who have a comparatively large potential export market" (Hazlitt p81). How does that tariff hurt more than it protects? It would