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Economics in one lesson

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Government never does as well in making loans as the private sector does. Tis is because people tend to be more careful with their own money (Hazlitt. Ufortunately, mst of the time this fact is always hidden because bad loans made by the government are hidden in most federal spending. O the other hand, wen banks collapse due to bad loans, i is announced all over the news. Plitical considerations further hide the bad loans as a result of government lending. Tis does not happen in the private the firm in question is affected by a politically motivated legislation.

Te community reinforcement act is an example of a legislation that advocates for loans to individuals who do not qualify. Te book cites the Bush administration endeavors to ensure that banks lend more money. Bsed on the current times, Hzlitt argues that tariffs such as NAFTA are harming the economy. Hzlitt states that both consumers and producers are hurt by the tariffs. Hs argument is the opposite of the common notion that tariff affects consumers only. H explains forces consumers to pay much higher than they could have without it.

Tis means the extra dollar spent due to the tariff could have been used elsewhere. Terefore, tis denies producers of other goods and services that dollar. Triffs are aimed at protecting local industries against competition from foreign goods. O the other hand imports are good because they provide other countries with local currency necessary in buying domestic goodsHazlitt addresses the economic impact of government actions and remains silent on protectionism due to national security. H states the gain from foreign trade for any country lies in its imports and not its exports ( Hazlitt, pra11).

H supports his statement by arguing that businessmen imports products because they are cheaper for the consumers compared to domestic products. H therefore concludes that importation is a good thing. O the other hand, h argues that a country whose imports are more than exports is supposed to worry about its trade imbalances. Te book also addresses the fallacy that cost of production determines the market prices. Hzlitt that demand supply determines the market price.

Bilouts are necessary to save collapsing industries. Hzlitt argues that even though the resources that could have been used for developing thriving industries. ..

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