Books this year: a book diary

I read this book because it’s part of the Libertarian canon. In it, Hazlitt proposes that many fallacies in economics can be revealed as such by taking heed of one lesson – to consider all the groups that will be affected by a change instead of only a special group, and to consider long-range consequences instead of only considering short term ones.

Issues that are considered include war, anti-technology people, public works, unions, and interventionist policies of all kinds.

So many people support Keynesian theory these days that you have to seriously consider the possibility that you are a fool if you don’t. I’ve had a couple of spirited conversations with a friend of mine about the money supply and the gold standard and these types of conversations always seem to go to this place where it is remarked that the kind of thinking and logic one might apply to individuals and families is inapplicable to macroeconomics. Indeed, if Keynesian theory is to be believed, only experts can really understand macroeconomic policy. On this, Hazlitt quotes Adam Smith: “What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom.”

I don’t know the answers, but I can definitely say that even if there were some merit in some of the interventionist policies taken by the government, these policies could definitely be brought about in a fairer way. For example, if it really is necessary to increase the money supply, why not give new money to everyone at the same time? They do it when they give us our “stimulus” checks. In any case, it’s quite clear to me that in the rare instances that logic can be found in macroeconomic policy, the middle and lower classes get the short end of the stick.

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