Everything is Everything Ep 109: Economics in One Lesson
Aug 6, 2025
Dive into the world of economics as the hosts unpack Henry Hazlitt's classic book. They mix humor with enlightening insights about opportunity cost and the intricacies of economic growth versus wealth distribution. Discover how technological advancements reshape society and challenge traditional policies like rent control. Anecdotes from Bombay reveal the real impact of these economic principles on everyday life, emphasizing the necessity of a balanced and informed approach to public policy.
01:18:13
The Economist Who Puked On A Forest
- Ajay Shah got motion sick during a two-hour tandem paragliding flight over mountains.
- He says the pilot even told him to "stick my head out and puke on the forest below."
Look Beyond The Immediate Effect
- Henry Hazlitt urges economists to trace both immediate and longer indirect effects of policies.
- He warns to examine effects on all groups, not just the obviously helped ones.
Broken Window Reveals Opportunity Cost
- Frédéric Bastiat's broken window parable shows visible repairs mask lost alternative spending.
- Always ask what would have been purchased instead to reveal true costs.
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Intro
00:00 • 2min
Unpacking Economic Principles
01:37 • 16min
Balancing Growth and Distribution
17:55 • 24min
Tech's Impact on Economy and Society
41:46 • 7min
The Paradox of Industrial Policy
48:51 • 16min
Reflections on Rent Control and Property Rights
01:05:06 • 3min
Fundamentals of Economics: Policy Impacts Unveiled
01:08:14 • 10min
#48094
That Which Is Seen and That Which Is Not Seen
Frédéric Bastiat
Frédéric Bastiat's essay, "That Which is Seen, and That Which is Not Seen," elucidates the importance of considering the indirect and often unseen consequences of economic policies.
Bastiat argues against focusing solely on the immediate and visible effects.
He uses the parable of the broken window to illustrate how destruction can be mistakenly seen as beneficial to the economy.
By examining the unseen, Bastiat highlights the opportunity costs and unintended outcomes of government intervention.
The essay advocates for free markets and limited government, promoting the idea that individual actions and voluntary exchange lead to greater prosperity.
#2478
• Mentioned in 11 episodes
The Mystery of Capital
Hernando De Soto
Hernando de Soto's "The Mystery of Capital" examines the crucial role of property rights in economic development.
He argues that the lack of formal property rights in many developing countries prevents individuals from using their assets as collateral for loans or investments, hindering economic growth.
De Soto highlights how informal economies operate outside the formal legal system, limiting access to credit and capital.
The book proposes solutions to formalize property rights, unlocking the potential of these assets and fostering economic development.
This work has significantly influenced discussions on property rights, poverty, and economic development in developing nations.
#1881
• Mentioned in 14 episodes
Evolution of Everything
Matt Ridley
In this book, Matt Ridley presents a wide-ranging argument that evolution, rather than design, is the driving force behind many of the significant developments in human society, technology, and culture.
He argues that change in these areas is incremental, gradual, and spontaneous, often resulting from the interactions of millions rather than the plans of a few.
Ridley draws on evidence from science, economics, history, politics, and philosophy to demonstrate how bottom-up processes shape our world, from the evolution of the universe and morality to the development of technology and the internet.
The book challenges conventional assumptions that major events and trends are dictated by those in positions of power, instead highlighting the role of emergent phenomena and natural selection in shaping our world.
#61
• Mentioned in 147 episodes
The Wealth of Nations
Adam Smith
Published in 1776, 'The Wealth of Nations' is Adam Smith's magnum opus that laid the groundwork for modern economics.
The book critiques mercantilist economic theories and introduces the concept of the 'invisible hand,' which describes how individual self-interest leads to societal benefit.
It emphasizes the division of labor, the accumulation of capital, and the importance of free markets.
Smith argues that a nation's wealth is not measured by its gold and silver reserves but by the stream of goods and services it produces.
The book also outlines the core functions of government, such as maintaining defense, enforcing civil law, and promoting education, while advocating for limited government intervention in market activities.
#62504
The life of reason
George Santayana
#4891
• Mentioned in 6 episodes
America's great depression
Murray Rothbard
In this book, Murray N. Rothbard challenges conventional wisdom by arguing that the Great Depression was caused by government intervention and the Federal Reserve's monetary policies, rather than by market failures.
He explains the Austrian theory of the business cycle and details how the inflationary policies of the 1920s, combined with the interventionist policies of the Herbert Hoover administration, exacerbated the economic crisis.
The book also discusses the long-term impacts of the Great Depression on economic policies and societal structures, including the establishment of regulatory bodies and safety nets.
#3063
• Mentioned in 9 episodes
The Forgotten Man
A New History of the Great Depression
Amity Shlaes
In 'The Forgotten Man,' Amity Shlaes offers a striking reinterpretation of the Great Depression by shifting the focus from the New Deal to the moving stories of individual Americans who endured the era.
The book explores the brave leadership and perseverance of common people, such as the Schechters, a family of butchers in Brooklyn, and Bill W., the founder of Alcoholics Anonymous.
Shlaes also examines the failures of Presidents Hoover and Roosevelt in understanding the prosperity of the 1920s and the long-lasting impact of their policies.
The book argues that the real question about the Depression is why it lasted so long, rather than whether Roosevelt ended it with World War II.
#406
• Mentioned in 45 episodes
Seeing Like a State
How Certain Schemes to Improve the Human Condition Have Failed
James C. Scott
In this book, James C. Scott examines the failures of centrally managed social plans and the destructive consequences of high-modernist ideologies.
Scott argues that states often impose simplistic visions on complex societies, ignoring local, practical knowledge and leading to disastrous outcomes.
He identifies four conditions common to all planning disasters: administrative ordering of nature and society, high-modernist ideology, authoritarian state power, and a prostrate civil society.
The book critiques various utopian projects, including collective farms, compulsory villagization, and urban planning, and advocates for a more nuanced approach that respects local diversity and practical knowledge.
#520
• Mentioned in 36 episodes
Capitalism and freedom
Milton Friedman
In this influential book, Milton Friedman discusses the role of economic capitalism in a liberal society.
He argues that economic freedom is a precondition for political freedom and advocates for limited government intervention.
The book covers various topics, including the relation between economic and political freedom, the role of government in a free society, monetary policy, international trade arrangements, and the role of government in education.
Friedman's work has been highly influential in economic theory and policymaking, and the book has been translated into eighteen languages and sold over half a million copies since its publication in 1962.
#930
• Mentioned in 25 episodes
Economics in one lesson
Henry Hazlitt
In 'Economics in One Lesson', Henry Hazlitt provides a concise and instructive introduction to economics by dissecting common economic fallacies.
The book's central lesson is that good economics involves considering the long-term and indirect consequences of any policy for all groups, not just the immediate effects on a specific group.
Hazlitt uses examples like the 'broken window fallacy' to illustrate how focusing only on immediate benefits can overlook the broader, often negative, consequences.
The book advocates for free markets, economic liberty, and non-governmental solutions, making it a critical read for understanding basic economic principles and the pitfalls of government intervention.
#1207
• Mentioned in 20 episodes
Basic economics
Frank V. Mastrianna
Thomas J. Hailstones
This textbook provides a straightforward and comprehensive introduction to basic macro and microeconomic concepts.
It is designed to be accessible and is widely used in introductory economics courses.
The book covers fundamental principles and theories in economics, making it a valuable resource for students and those new to the subject.
#18639
• Mentioned in 2 episodes
In Service of the Republic
Vijay Kelkar
Ajay Shah
For almost 80 years, one book has been the go-to book for understanding economics — and the world. Henry Hazlitt wrote that book.
Welcome to Episode 109 of Everything is Everything, a weekly podcast hosted by Amit Varma and Ajay Shah.
In this episode, Amit and Ajay discuss Economics in One Lesson by Henry Hazlitt — a book you must read if you want to understand the subject!
TABLE OF CONTENTS: 00:00 Packaging00:13 Intro: The Economist Who Puked on a Forest02:27 Chapter 1: Economics in One Lesson10:58 Chapter 2: The Key Lesson13:20 Chapter 3: The Parable of the Broken Window19:46 Chapter 4: Public Works27:24 Chapter 5: Taxes and Incentives33:08 Chapter 6: The Folly of Credit by the State35:43 Chapter 7: The Fear of New Technology49:45 Chapter 8: Jute ka Jhoot53:57 Chapter 9: The Blunder of Rent Control1:08:09 Chapter 10: Three Broad Lessons1:11:34 Chapter 11: The Toolkit
For the full show notes, please click here.