Wisdom: The Art of Economics

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Nov 112009
 
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Henry Hazlitt
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The single most distinguishing factor between good economics and bad is looking beyond first effects and beneficiaries. Frederic Bastiat described it as “what is seen and unseen.” Henry Hazlitt described it as follows:

“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.”  Henry Hazlitt

This concept is so simple and straightforward that one would think even economists could understand it. But many don’t and virtually all under the influence of politicians won’t. Ignoring this concept is the single most important reason for the jumbled mess known as Washington economic policy.

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