Economics : An Integral Part Of Civilization Of The World Essay

924 Words4 Pages
Economics is an integral part of civilization of the world. In any case, economics issues that emerged in the community is practically quite difficult to resolve. Henry Hazlitt in his book "Economic in one lesson" revealed that economics is overshadowed by fallacies because of two main factors which intensify the problem’s complexity. The first factor is the tendency of people to defend their respective interests. One group may have similar interests with all other groups, however, they also have competing interests against each other. The second factor causing these fallacies is the tendency of people that will only see short-term effects of an economic policy or its effect only on a particular group. This is often ignored by economists when entering the field of public economics. Hazlitt stated that the bad economists are economists who only see the short-term effects of economic policy as well as its impact on certain groups only. While good economists are those who see long-term effects of an economic policy and examine its effect on all groups. By looking at both of these factors, he argued that the whole economy can be expressed in one sentence in a lesson. "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 "(Hazlitt, 1946, p5). For only knowing the concept of fallacies in economics, which disclosed by
Get Access