Economics in One Lesson

This is the rare book that is as eye-opening for the novice in economics as it is stimulating for the professional economist. Hazlitt will show you why economics is the golden key to unlocking an endless series of social mysteries.

If you really take his classic 1946 “Lesson” to heart, you can outthink many professional economists who have mistaken mathematical pyrotechnics for economic insight. 

I think economics has a bad reputation, and it is mostly due to economists' either deliberately or inadvertently communicating poorly in class, on TV and radio, in podcasts, and in writing.

This book is none of that. It was written by a well-respected old-school journalist who could really write. I like its approach of short, punchy chapters. Hemmingway-like in its writing and style, it truly delivers what the title promises. I have a poster of this author on my office wall. 

While not explicitly from the Austrian School, Hazlitt’s book is perhaps the most popular “gateway drug” of sorts, guiding interested readers to the Austrian School.

What is the “one lesson” Hazlitt boils economics down to? All economic decisions have “opportunity costs.” In short, when we choose to use a resource for X, we forgo the opportunity to pursue Y. If you spend $5 on milk, that $5 is no longer available to buy eggs or bread. When a ton of steel is used in building a bridge, it is no longer available for use in building a skyscraper.  

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I read this book very early, because it was recommended to me by senior Austrian economists as the best introduction to the Austrian School, being much easier to read than Human Action.

Hazlitt´s book is a classic. It destroys many fallacies such as the broken window fallacy. Hazlitt´s book is unrivaled as an introduction into sound economic thinking.

There is no book from which you can absorb more economics with less effort. Readers new to economics should start here. Readers familiar with economics should return here often.