by Henry Hazlitt
Chapters 1- 5
Art? of economics? Doesnt sound possible for such a stuffy field of study, but the more I read in this small volume, the more readable it became. I found lots of ways to apply Mr Hazlitt's principles to my everyday life and over the course of the next few weeks, I'll write about them here with Cindy and others.
So, the main lesson is axiomatic and must be memorized:
The art of economics consists in looking not merely at the immediate but at the larger effects of any act of policy;
it consists in tracing the consequences of that policy not merely for one group but for all groups.
This social science is important to me, a homemaker, because daily I am called upon to make decisions which affect my ecos (Greek for home). The use of guidelines or laws (nom in the Greek) establishes a framework which when artfully applied produces ideal results.
This is the nature of the lesson and the author tells us that there are two fallacies which muddle the picture: 1) the tendency to concentrate on only the short-run effects of a policy and 2) the practice of presenting only half truths when proposing solutions/policies.
Perhaps you are not yet convinced that learning about economics is beneficial to you, but I implore you to keep reading. In the remaining chapters, Mr. Hazlitt presents example after example of how economics affects your everyday living, especially the bad economic policies of our politicians and legislators.
I think my favorite quote from these chapters is
Everything we get, outside of the free gifts of nature, must in some way be paid for.
In other words, TANSTAAFL = *There is no such thing as a free lunch*, a phrase popularized by Milton Friedman and a science fiction writer. It is an easy acrostic for training your children to look beyond the immediate and locate the secondary.Help them find those purse strings which are lurking behind the offer of something for nothing.
Now what was seemly dull (economics) becomes imaginative (artful) when we consider the unseen possibilities in everyday decision-making.
Should we order T-shirts, ladies?
They're *on sale*? (giggle)
Boy, I think I'll order a couple! I'm not even reading along with y'all, though I've read the book before and my high schooler will read it next year in his econ class. I wish I had the time to read/blog along now.
ReplyDeleteDana,
ReplyDeleteIt is just like you to make us fashionable while reading. I can imagine being a light in the darkness at the baseball games next season!
I am working on the Mr Linky for the post and am failing miserably so I may have to come up with plan b and just do it like the Weaver discussion but I really liked the Mr Linky idea.
I look terrible in T-shirts! but I did think that it would be a fun idea.
ReplyDeleteAbout the *Mr Linky* I wish I had some good advice. Unfortunately my computer geek score is dismal :(
Dana, please tell me how your husband plans to withdraw from (or not participate in) Medicare! My mom, of course, has Medicare (she's 72), but she also has a secondary insurance. BUT, the secondary insurance will only pay the very small part (sometimes nothing because doctors will take what Medicare pays) that Medicare doesn't pay. So, I've not seen how this could work. Unless one has scads of money or never gets sick!
ReplyDeleteYou're so right, Dana, economics begins at home.
ReplyDeleteI know TANSTAAFL, and vaguely remember it in conjunction with a scifi writer or book, but who/what was it? I'm going to be bugged by that until I have the answer... .
Never mind. I clicked on your handy link, and saw it was Heinlein in The Moon Is a Harsh Mistress. I read that in high school (and other Heinlein books). He was a conservative scifi writer and several of his books had themes dear to conservatives.
ReplyDeleteKathleen,
ReplyDeletePerhaps our next book club topic can be health insurance related...
But the short answer is that a physician can be *participating* or *non-participating* with Medicare. The *provider* must notify CMS each and every year.
From the patient's perspective there may be a little more paperwork, but the upside is establishing a relationship with a physician who usually has a higher view of the doctor/patient relationship and the trust involved.
Whenever a third party (insurance) dictates the plan of care/treatment, then the sanctity of the doctor/patient relationship is compromised.
Furthermore, just like Mr. Hazlitt's examples illustrate.... when the government loans the money (instead of the private lender) the officer usually doesnt investigate the situation as carefully as if it were his own money (he is loaning).
The same principle is true in healthcare....when you pay out of pocket for an office visit, you are more careful about when where and whom you see.
Okay, I think I see. You're talking about it all being out of pocket, right? Because the insurance thing doesn't work once you're past 65--they won't pay anything if you don't use Medicare first (at least no insurance companies that I know about). No way my mom would go for any of this, but my husband and I have long sought a way to opt out of it all--to the point of taking nothing from Social Security but what we paid into it (with a little interest, maybe?). Of course, these days, that might be more than we'll get anyway, right? ;-)
ReplyDeleteI'm fairly (not as much as I'd like to be) informed about the ins and outs of the history of the insurance industry and the government's involvement (to the point of ruination) of the whole mess.
I don't want this to go on too long, but I have even told my mom (who goes to the doctor at the drop of a hat), to shop around for her prescriptions--the differences are often astounding--but she says, "Why should I? Insurance pays for it." Drives me crazy.
Actually, Kathleen, I dont think I've made my self clear.
ReplyDeleteThe physician is the one who has opted out of a contract with Medicare NOT the patient in the hypothetical I've proposed.
This means that the Medicare-covered patient can be treated by a non-Medicare physician, but there are stipulations ON THE MD.
Most Americans dont understand their healthcare and dont want to.
The ideal course of action for us *youngsters* is to have something in place in case Medicare defaults in some way. They are already pushing the age of eligibility up to 67+.
At any rate, this is related to Economics in One Lesson, but clearly complicated. The US Constitution does not truly authorize the federal government to participate in healthcare. And that's my beef.
Well, I'm confused -- I don't see where you said anything about not participating in Medicare.
ReplyDeleteHealth care is one issue that really annoys me because when I was growing up my daddy was self-employed so we had no insurance. My mom was pretty handy with home remedies and we went to the doctor if we had a broken bone or a deep puncture wound or pneumonia, and then we made payments each month till it was paid off.
When my daddy had to have emergency surgery, the doctor and anaesthesiologist (who were members of our church) waived their fees, so we only had the hospital to pay.
All that just to say that it can be done and I'm sure that's what we'll wind up doing as our children get too old to be covered by my husband's military veteran's healthcare.
On a slightly different topic -- I can't remember if you or Carmon mentioned something about so many Americans receiving their money either directly or indirectly from the govt. This evening Mike and I were talking about it and we don't know ONE PERSON in real life who doesn't get gov't money. Even he (now that he's out of the military) is employed by a civilian firm that does contract work to the military. I have a couple of cousins who might not, but everyone else I know is either on Social Security or some other form of assistance, is employed directly by gov't (whether federal, state, or local), works for a public school system, is employed by a gov't contractor, or receives compensation for services from the gov't (like Medicare/Medicaid).
The mind boggles.
Okay, I just saw the Medicare comment over at Cindy's blog.
ReplyDeleteOh, wait!! Dana, is you husband a physician? If so, I think I see where my disconnect is. I was looking at this from the opposite end.
ReplyDeleteBoohoo, I tried to leave a couple of comments today and it didn't work. Try, try again :-).
ReplyDeleteI got the shirt, BTW, and I will model it for you all, I promise. I also got Ron Paul's book on foreign policy ;-).
Sorry that you're having trouble leaving comments, Carmon. I guess that's why I need my own domain and commenting system...to make it easier for folks :)
ReplyDeleteHealthcare vs foreign policy...not sure which of those would be a more controversial topic for our next book club discussion.
Yes, Kathleen, DH is an MD.
Hah! Are you really ready for your own domain?? :) Don't feel pressured to ask me for help - as disorganized as I am. :P I am available for advice and hands-on help in navigating the "system."
ReplyDeleteI have been thinking of moving to a hosting situation where everyone would have full access to their own accounts (and would be easier for them to take control and/or move if I became unable to continue to manage things). Unfortunately, this is more costly than what I'm doing now, and I am not very financially or business minded, and haven't been big on collecting and recording "dues" from those I'm hosting.
Dana, I hadn't realized your husband was a doctor when I made my post above. I hope it didn't come across as taking advantage of Christians doctors or presuming upon Christian charity. We'd intended to pay them for that surgery and only found out later they didn't want us to.
ReplyDeleteKelly, no offense was taken at all. The situation you described is exactly the way things should happen.
ReplyDeleteThe state of healthcare in the 21st century is scary - on the brink of multiple crises including financing, ethics, and malpractice. It's an economic industry in and of itself....
Thanks.
ReplyDeleteMy 17yos is considering paramedic training because that's something that would be very useful in a rural community and we won't have to go into debt for his training.