Economics (and life decisioning) in one sentence.

Here I am trying to do a bit of paraphrasing in defining economics in one sentence as Henry Hazlitt mentions in his 1946 book – economics in one lesson.

Economics is about:

- looking not merely at the immediate BUT also at the longer effects of any act or policy.

- not just considering the direct consequences BUT also at the indirect consequences

- tracing the consequences of that policy not merely for one group BUT for all groups.

If you read this again, it’s not just about economics, it’s practically a guide to any decision an individual or organisation makes.

Let’s dissect this, slowly.

1. Long term vs Short term impact

2. Direct vs Indirect Consequences ( also known as second order effects)

3. Impact on One Group vs All Groups

Just go back to the definition again – I bet your economics and life is sorted.