Henry Hazlitt Economics in One Lesson

186 Economics in One Lesson

parity prices as cure for, 76 full employment, 41, 55–57, 78, 139,
and savings, 163, 164, 167 152
wage/cost/price maladjustments,
Full Production bills, 56
153–54
destruction, fallacy regarding eco- gold standard, 70, 151
government, deficit financing by,
nomic benefits of, 13–16
disbandment of government person- 51–52, 155–56
government credit, 25–32, 71–73
nel, 51–54
division of labor, 15, 33, 91, 179, 181 See also commodities, contols for
government personnel, disbandment
See also subdivision of labor
Douglas, Major, xiii of, 52–54
Douglas, Paul H. government price-fixing. See price-fix-

Theory of Wages, The, 136 ing by the government
government subsidies. See subsidies,
economic equilibrium, 138–39
economic fallacies, summary of cen- government
Guffey Act, 84
tral concepts, 3–7
Edwards, Corwin, 36–37 Hamilton, Alexander
employment, full, 41, 55–57, 78, 139, Federalist Papers, 110

152 Hansen, Alvin, xiii
“enough to buy back the product” History of the Machine-Wrought Hosiery

concept of wages, 133–39 Manufacturers (Felkin), 34
ever-normal granary, 99–100 hoarding of money, 162–64
exports, 69–73, 80, 147 Home Owners Loan Corporation,

See also tariffs 31–32
Human Action (Mises), vii
fallacies, economic, summary of cen-
tral concepts, 3–7 imports, 69–73, 80, 147
See also tariffs
farms and farming
controls for production, 97–103 Industrial Revolution, 34, 41, 42
government credit, 25–29 industries, schemes for saving, 83–87
parity prices, 75–81 inflation

Federal Wage-Hour Law, 47 deceptive nature of, 153–55
Federalist Papers (Hamilton), 110 desire for as a producer, 113
Felkin, William effects of, 147–53
and government activities, 18, 25,
History of the Machine-Wrought
Hosiery Manufacturers, 34 155–57
reasons for appeal, 145–47
Financing American Prosperity, 152n and savings, 169
foreign exchange, 70, 151 and wage increases, 49
foreign governments, government wartime, 14, 16

loans to, 71–73

Index 187

interest rates and savings, 168–69 Office of Price Administration, 107
investments and savings, 162–69
overexpansion of industries and
Keynes, John Maynard, xiii, 152n
Knight, Frank H. inflation, 150–51

Risk, Uncertainty and Profit, 142 Overproduction and Crises (Rodbertus),

labor unions. See unions, labor 160
laissez-faire economics, 6, 85
loans from government, 25–32, parity prices, 75–81, 85, 101
Pigou, A.C.
71–73
See also commodities, contols for Theory of Unemployment, 136
pin making industry, 33–34
loans to government, 51–52, 155–56 Poverty and Waste (Withers), 161
Ludditism, ix President’s Commission on Full

machinery and unemployment, Employment, 56
33–43, 181 price system, 89–95
price-fixing by the government, xiii,
Man, Economy, and State (Rothbard), vii
Marshall, Alfred 84, 105–13, 142–43, 148
Principles of Economics (Marshall), 152n
Principles of Economics, 152n Principles of Political Economy (Mill),
Marx, Karl, xiii
Marxists, 133 152n
Mencken, H.L., x production
Mill, John Stuart, 15
effects of government credit on,
Principles of Political Economy, 152n 25–32
minimum wage laws, viii–ix, 115–119
Mises, Ludwig von, x, xii, xiv effects of taxes on, 23–24
profits, function of, 141–44
Human Action, vii public works, viii, 17–22, 145, 155–56
Theory of Money and Credit, The,
rationing, 107–10
148n real wealth, 146, 152
Realm of Truth, The (Santayana), 176
Nation, The, x Reason and Nature (Cohen), xii
National Railroad Adjustment Board, Recent Economic Changes (Wells), 35
Reconstruction Finance Corporation,
46
New Deal, x, 31–32, 75–76 31
New Leader, xiv “Refutation of Keynes’ Attack on the
New York Times, x, xiv, 77
Newsweek, x Doctrine that Aggregate Supply
Norris Dam, 22 Creates Aggregate Demand,” in
Financing American Prosperity (Ander-
son), 152n
relief programs, 117–18, 126
restrictions to farm production,
100–03
Risk, Uncertainty and Profit (Knight), 142

188 Economics in One Lesson

Robinson Crusoe, 90 supply and demand, 15–16, 91–92,
Rodbertus, Karl 97, 99, 138, 181

Overproduction and Crises, 160 Swiss Family Robinson, 90
Roosevelt, Eleanor, vii, ix, 37
Rothbard, Murray tariffs, 59–68, 75, 79–81, 83, 85, 86
taxes, effects on production, 23–24
Man, Economy, and State, vii taxes and public works, 17–22
technocrats, 35–36
Saint Joan (Shaw), 21 technological improvements and
Santayana, George, 36
unemployment, 33–43, 181
Realm of Truth, The, 176 Temporary National Economic Com-
savings
mittee (TNEC), 36, 141–42
Bastiat’s savings vs. spending Tennessee Valley Authority (TVA),
example, 159–62
21–22
capital absorption and, 169–71 Terbough, George
effects on production, 164–66
hoarding versus, 162–64 Bogey of Economic Maturity, The,
investments and, 162–69 164n, 171n
scarcity economics, 93
Shaw, Bernard textile industries, 41
Saint Joan, 21 Theory of Money and Credit, The
silver industry, 83–84
Smith, Adam, 146, 155, 178 (Mises), 148n
Wealth of Nations, The, 33–34, Theory of Unemployment, The (Pigou),

59–60 136
social credit, 147 Theory of Wages, The (Douglas), 136
socialism, 30 TNEC (Temporary National Eco-
soldiers, disbandment of, 51–52
speculators (for commodities), 98–99 nomic Committee), 36, 141–42
spread-the-work schemes, 45–50 troops, disbandment of, 51–52
stocking industry, 34, 42 TVA (Tennessee Valley Authority),
strikes, 123
subdivision of labor, 45–46 21–22

See also division of labor U.S. Office of Price Administration,
subsidies, government 107

for businesses, 31–32 unemployment and machinery, 33–43
for exports, 72–73 unions, labor
and parity prices, 77, 79, 80
price-fixing by the government, labor practices of, 36–37, 45–50,
56
107, 108–09, 113
schemes for saving industries, 86–87 wages and, viii, 116, 121–31,
Sumner, William Graham, 178–79 134–35, 153
superinflation, 151–52
Value of Money, The (Anderson), 148n
Veblen, Thorstein, xiii
von Mises, Ludwig. See Mises, Ludwig

von

Index 189

wage laws, viii–ix, 115–19 Wicksteed, Philip
Wagner Act, 127 Commonsense of Political Economy,
war, inflation and, 14, 16 xii
wealth, real, 146, 152
Wealth of Nations, The (Smith), 33–34, Withers, Hartley
Poverty and Waste, 161
59–60
Wells, David A. Woods, Bretton, x
working week, 46–50, 56, 130
Recent Economic Changes, 35 WPA (Works Projects Administra-
Wheeler, Dan H., 84
tion), 56