March 24, 2011

Purpose of the Economy

The field of economics is rife with bias due to powerful selfish interests that influence this social science.

Science or art or what? Henry Hazlitt, in 1946, suggested that "The whole of economics can be reduced to a single lesson, and that lesson can be reduced to a single sentence:"

The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.

I'm not sure this encapsulates the whole of economics, but it does define what the economy should provide for society. That is, it should operate for the broader benefit of society and not merely for the minority establishment. This is the purpose of the economy and this principle should underlie the study of economics.


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