One important aspect of the book was the discussion on the consequences of bureaucratic governmental involvement in the establishment of a nation's economic policies, which was the subject matter of Chapter Seventeen-"Government Price-Fixing". But perhaps a more contemporary situation would best illustrate the author's theme of this section. The various economic pr

Hazlitt first provides a simple, yet logical illustration of the mechanics of taxation. To understand the effect of any tax, one must first determine who bears the burden of the tax. This, according to Hazlitt, is not always an easy task. Suppose that the price of a chocolate doughnut is $1.00. The government then imposes on sellers a tax of 10 cents per doughnut. A few weeks after its imposition, the tax causes the price to increase to $1.10. The doughnut seller clearly receives the same amount per doughnut as he or she did before the tax-the tax has not made the seller worse off. Consumers pay the entire tax in the form of higher prices. On the other hand, suppose that after the tax the price increases to $1.04. In this case, the seller keeps only 94 cents per doughnut, and is worse off by 6 cents per doughnut. Consumers are also worse off, however, because they have to pay 4 cents more per doughnut. In this case, retailers and consumers share the burden of the tax.

Economic issues have occupied people's minds throughout the ages. Aristotle and Plato in ancient Greece wrote about problems of wealth, property, and trade. Both were prejudiced against commerce, feeling that to live by trade was undesirable. The Romans borrowed their economic ideas from the Greeks and showed the same contempt for trade. During the Middle Ages the economic ideas of the Roman Catholic church were expressed in the canon law, which condemned the taking of interest for money loaned and regarded commerce as inferior to agriculture. Today, as the population strives to become better citizens through educating themselves, people have undertaken the responsibility to expand their horizons and learn of topics that are generally outside of their field spectrum. Although a certain (though minimal) amount of knowledge of economy is required when reading Economics in One Lesson, it is deemed very successful at presenting the essential concepts of economics while elaborating on the common fallacies associated with its study.

The last two chapters of the book serve to summarize the intent of the book, how it has achieved in fulfilling its objective, and to a certain extent, reveals important elements of an ideal economic policy. Hazlitt periodically alludes to the works by Adam Smith, and he also concords that in order to meet a constantly growing demand for goods, a country's scarce resources must be allocated efficiently. According to Smith's theory, a country that trades internationally should specialize in producing only those goods in which it has an absolute advantage-that is, those goods it can produce more cheaply than can its trading partners. The country can then export a portion of those goods and, in turn, import goods that its trading partners produce more cheaply (facets which

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