Economics in One Podcast with Ben Prentice - WBD621

Ben Prentice is a producer of What Bitcoin Did and co-creator
of WTFhappenedin1971.com. In this interview, we discuss
‘Economics in One Lesson’, the seminal work by Henry Hazlitt.
It’s as relevant today as it was when it was first published
in 1946. We also talk through the disruptive force of AI,
and, of course, we cover Bitcoin.


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Henry Hazlitt was an American journalist who reported on
economics and business between 1913 and 1969 for publications
such as the Wall Street Journal, Newsweek and the New York
Times. He is credited with introducing the ideas of Austrian
economics to the English speaking world. But his legacy was
burnished through his 1946 book ‘Economics in One Lesson’.


Hazlitt’s ideas have been acknowledged as being foundational
in the development of neocolonialism in the United States.
‘Economics in One Lesson’ has been praised since its
publication by numerous prominent economists opposing
Keynesian economics. But it was it’s impact on decision
makers such as Ronald Reagan that set it apart from other
works. And it is still having an impact today.


Hazlitt’s book has resonated with different audiences for
over 75 years because it developed arguments that have
remained timeless. Two central ideas have as much relevance
today as they did in 1946: firstly, policymakers
underestimate the cause and long-term effect of policy
decisions; secondly, many economic beliefs are based on
logical fallacies. It is a work that strips away the
complexity of economics to explain it in clear and
recognizable terms.


The question should therefore be why we live in a world that
seems to be making the same mistakes that formed the basis of
Hazlitt’s original work. Part of this is because the
underlying monetary system is inherently weak. But, it is
also because decision-makers, either through ignorance or
arrogance, believe that they can allocate capital better than
the market. This is why Hazlitt’s work remains important: we
must remember the past or be condemned to repeat it.