Economics in One Lesson, Henry Hazlitt (High Quality version)

[stephanstrack]

@ zsylvana not entirely true. Central banks where already here before 1913. See the bank of england and the charters for the central banks in the 19th century in America.

[FinallyAFreeUsername]

3 people hate bow ties.

[paulmurphy42]

Is there one particular book or pamphlet, or online site, which presents the opposite view to Henry Hazlitt?

[stalrunner]

@paulmurphy42 I've challenged anyone who wants to try to refute Hazlitt or Bastiat. I've never seen it happen where I couldn't easily refute their refutation.

[paulmurphy42]

@stalrunner Yes I appreciate that, but hasn't anyone ever written a short critique of Hazlitt? I basically agree with him, but there must be some areas where one can disagree...

[stalrunner]

@paulmurphy42 You could look. I'm not aware of one.

[Jaluzaga]

@stalrunner @paulmurphy42 I know of somebody who has tried to refute Hazlitt, it's called government, and look what happens.

[SDS4BO]

It's not the business cycle per se that is objectionable, it's the illegitimate means by which central bankers disrupt the economic rules for everyone else but themselves, and profit thereby

[Obama11Sucks]

Ignore-for my use. 2:09:30

[vince33x]

The greatest single book on economics ever written! With apologies to Adam Smith, Milton Friedman and Thomas Sowell.

[rickbar123]

@vince33x Toilet paper, a tad on the rough side. But thats the norm for the right.

[vince33x]

@rickbar123 I think you've been confusing the toilet paper with your napkins.

[zsylvana]

Rothbard (who seems to be the most popular exponent these days) blames central banking for the existence of the business cycle, which is somewhat problematic, since the business cycle predates central banking. In fact, central banking in its modern form was introduced in an attempt to stabilise the business cycle. The US Federal Reserve was only established in 1913, after Mises had published his analysis.

[blowbackinevitable]

@zsylvana Mises was from austria the central bank of england started 1694

Just because the FED. RES. did not exist before 1913 does not mean the two private banks existed before then,nor will you understand until you see the same folks that brought us the fed were running the show before that . The fed masters existed before their creature from jekyll island. The fed act just gave them more power with less regulations and oversight

[cobracarg]

@zsylvana when there wasnt a central bank in the US, there were government sponsered state banks... same principle applies

[RadoslawSzymanek]

@zsylvana

Business cycles before 1913 were caused by many factors. The first one was that banks were issuing too many notes which did not have backing in gold. They were doing credit expansion illegally, now FED can do it even more. The second one is that people are getting too optimistic, the world continuosly changing which makes economy always in state of mild inbalance therefore there will be mini cycles but the economy is more robust and adapts faster.

[Nielsio]

@zsylvana Rothbard does not just blame central banking, instead he blames the expansion of credit without the expansion of savings. This happened before 1913 also. The difference being that having this solidified central bank makes it much easier to create money out of thin air, which corresponds perfectly with an extreme loss of purchasing power for each individual dollar since then.

You're perpetuating two myths: 1. what Austrians say, 2. that there was no fractional banking before 1913.

[rumco]

@Nielsio Also, government often suspended payment of species before 1913.

[SuperGuitarman69]

@Nielsio Your response to zslyvana is perfect. It is tough to take on Austrian Economics. It is nearly flawless in it's simplicity. Truth is truth

[aybesee123]

@zsylvana The business cycle is natural but the intervention by central banks creates the extra volatility. It is mathmatically impossible to find the mean or median of a business cycle unless you know the specific quantity, demand, price of every item that makes up a market. Since that is impossible the market makes its best guess in the form of investment. Sometimes the market is right and sometimes it is wrong, hence the flucuations of the business cycle/moving average. Fed multiplies this.

[Capnwabbit]

@zsylvana The Federal Reserve is the 2nd central bank of the USA, not to mention the ones abroad, plus as Nielsio says, it's about the creation of cheap money (the primary "reason" for central banks), which has occurred throughout history such as the dilution of gold and silver content in official coinage etc. It's nice that you tried to be a smartarse and everything - but you failed.

[beavis408]

@Capnwabbit No its the 3rd.

[zsylvana]

The modern Austrian school has tried to argue that the business cycle they describe is caused in some way by government policy, though the choice of policy varies from Austrian to Austrian -- some blame paper money and want a gold standard, others blame central banks, some want a strict prohibition on fractional reserve banking while others favour a laissez-faire policy of free banking, where anyone who wants can print money and others still (as Hayek )

a system of competing currencies.

[doughtymqan]

@zsylvana Anyone can print currency right now. Pull out a piece of paper, write down the number of dollars on it, sign it and trade it for goods or services. It's called a check. Some currencies ARE better than others, A check from Bill Gates is preferable to one of mine. This is not a trivial statement. It's a matter of confidence in the issuer of the currency.

[zsylvana]

@doughtymqan Yes it´s true.Hayek´s view on currience seem to be reality today.

But US dollar is still the world reserve currencie.The big problem with that is it´s

real estate economy of US don´t correponde to US dollar value.It´s dependent on other

countries growth and good will to use the dollar.As i see it this "Crise" is just a minor one.The real depression comes when (and if )big countries like China,Japan don´t want to use US dollar as their main trade currencie.

[rumco]

@zsylvana You seem to be confused. Austrians claim that expansion of money and credit further than real savings (artificially) trigger a boom followed by a bust. While it is true that some vary on what the cure should be, I dare to say that predominant view is that money should be produced privately - that is, no central bank, no legal tender laws, and market will distinguish between a deposit and and a loan hence putting an end to fractional reserve banking, calling it fraud.

[SDS4BO]

@zsylvana You need to think economically rather than like some resentful former government employee.

[RomanticRebel267]

I have this book!!!

[Wayno2010]

This is classic. Thanks :)

[JoePeric85]

Thank you very much for putting this up Nielsio!

[NicosMind]

One of the best books ever!

[ronpaulspanish]

GREAT BOOK!!