Book Review: Economics in one lesson

In this blog I will review the book Economics in One Lesson by Henry Hazlitt.
The book literally just concentrates on one lesson and then gives numerous examples on how this one lesson not truly learnt is the sole cause of so many economic policies that fail over time. The lesson taught is pretty simple - it says that when evaluating or making any economic policy, we need to look at not just the immediate group that the policy caters to but all groups affected and we also need to look at not just the short term gains/effects but long term gains/effects as well.

Then the author analyzes many examples such as rent control, inflation, price fixing etc and explains how not following the above lesson caused the issues with all these policies.

When I purchased this book, I thought I will learn the basic terminologies that are used in day to day economics. This book is not for that purpose. Its a short and a good read.