The World's Best Book Summaries
Does efficiency kill employment? What are the implications of the efficiency-employment trade-off for the economy? Contrary to a common misconception, efficiency doesn’t kill jobs. This myth is based on the idea that there is limited work to be done, and thus it must be shared strategically to maximize employment. In this article, we’ll take a look at why creating inefficiency actually hurts employment and national wealth.
How do tariffs impact the economy? Does imposing import tariffs help or hinder the country’s internal industries? According to economist Henry Hazlitt, tariffs are not as benevolent for the economy as many people believe. Tariffs shift money, manpower, and productivity away from efficient industries in order to support inefficient industries. In this article, we’ll consider Hazlitt’s argument on the negative effects of tariffs on employment and the economy at large.
Are there any negative effects of government intervention? How does government intervention in the economy influence the supply-and-demand equilibrium? When the government intervenes in the economy—even in an effort to help—it interferes with the natural equilibrium of supply and demand. This may create unintended ripple effects. Keep reading to learn about different types of government intervention and how they affect the economy at large.
What is the purpose of price setting? How does artificial lowering or raising of prices for goods/services affect the economy? Sometimes the government’s efforts to help businesses include raising or lowering the prices of goods. As with other government interventions, price setting throws off the balance of supply and demand and, thus, creates ill effects. In this article, we’ll take a look at some of the most common price setting strategies and how they affect the economy.
How does saving affect the economy? Do you think keeping your money in a saving account or in investments has a positive or a negative effect on the country’s national wealth? Saving is generally seen as a bad thing for the economy because savings deprive spending on goods and services, thereby hurting national wealth. However, this is a fallacy—savings do the exact opposite in the long run. In this article, we’ll take a look at what actually happens when people choose to hold on to their money.
Why is investing for the future important? How do millionaires go about investing for the future? Investing for the future is important because the wealth you build through your investments will provide financial security and additional income. Millionaires invest for the future by putting their savings in investment vehicles like stocks and allowing them to grow. Read on to learn more about how millionaires are investing for the future.
How do minimum wage laws influence the economy? Are there any negative effects of setting a minimum wage? The minimum wage is generally seen as a good thing that benefits the workforce. However, according to economist Henry Hazlitt, minimum wage laws actually hurt employment and productivity. In this article, we’ll take a look at the negative effects of minimum wage laws on the economy at large.
What are the key takeaways of Economics in One Lesson by Henry Hazlitt? What are the secondary consequences of the economic policies the government puts in place? In this often-cited book Economics in One Lesson, Henry Hazlitt gives a clear, concise explanation of the secondary consequences of a range of economic policies. He posits that failure to consider the long-term, broad effects of policies leads the government to make decisions that sometimes exacerbate the problem they intend to solve. Here is a brief overview of Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics by Henry
Does the free-market system help or hinder the national interest? Do you think it’s better to let the economy run its course or to intervene? Many people believe that a free-market system—one in which supply and demand dictate prices for goods—serves the desires of greedy businesses rather than the consumers and the national wealth. But the price system naturally diverts capital and manpower to the industries that produce most efficiently and contribute the most to national wealth. Here’s why the free-market system is actually better for both consumers and the national interest.
Is it true that automation increases unemployment? How does labor-saving technology affect the economy? It’s a common misconception that automation leads to unemployment. In fact, automation increases production, because more output creates larger profits for businesses, enabling them to expand production, hire more workers, and/or raise wages. In this article, we will debunk the myth about automation and unemployment and explain why labor-saving technology actually creates more jobs than it eliminates.