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He argues that, the art of economics involves analyzing primary and secondary effects these policies to all groups.
The book discusses in details several fallacies such as high taxes, evils that take place in the public projects, minimum wage rate, effects of bailout, price control, tariffs on imports, rent control, trade union activities, regulations and economic effects of government actions. Parity pricing, disbanding a large number of troops, commodity stabilization and inflation are fallacies that are not given much weight but are included in this book.
Hazlitt does not object public program spending but rejects the use of public projects as a plan of injecting money into the economy. He argues that public projects should be justified based on their importance to the economy. Money outsourced from the private sector by the government in the form of taxes is used to fund public projects. Using the bridge example, Hazlitt argues that creating a job in the public sector kills another job in the private sector. In such projects there are things which are not permitted to come into existence. In paragraph 3 of this book, Hazlitt argues that, the secondary effect on public projects is in the form of how money used to fund these projects is diverted to other areas. Unfortunately, such news most likely will not be reported on considering the kind of news that are being aired nowadays.
Government never does as well in making loans as the private sector does. This is because people tend to be more careful with their own money (Hazlitt. Para8). Unfortunately, most of the time this fact is always hidden because bad loans made by the government are hidden in most federal spending. On the other hand, when banks collapse due to bad loans, it is announced all over the news. Political considerations further hide the bad loans as a result of government lending. This
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It is essential for the organizations to capture large set of information or data and monitor it cautiously. One of the most important data in this regard is economic data. For this reason, most of the business analysts uses different economic data in order to interpret important signals about the future condition of the economy and country.
The book discusses in details several fallacies such as high taxes, evils that take place in the public projects, minimum wage rate, effects of bailout, price control, tariffs on imports, rent control, trade union activities, regulations, and economic effects of government actions. Less important fallacies are also included in the book.
Finance is important, because a business needs to forecast where the business is heading. It needs to know if it is making any profitability, what is to be achieved, what are the costs, the risks, and how to acquire the financial needs. Similarly
A company with a monopoly does not undergo any pressure from competitors as far as their pricing strategies are concerned. They can do anything at their own will and they don’t want to consider many factors about the competition. “In an
that unlike perfect competition, where new firms are allowed to enter whenever they see existing firms making above normal profits and leave whenever they are not covering up their costs, this is not possible in the case of a monopoly. There are usually barriers that prevent new
Different firms emerged, each having the goal of making a mark in the market and so today we see new and different products in the market. The buyers have a huge choice in buying each commodity; there are lots of substitutes available for each good, slightly
Thus, the law seeks to protect free and honest trade, maintaining a high quality service from business people and satisfied consumers. These needs initiated the birth of the antitrust policy which will be discussed in part as
Rent ceiling is defined as the maximum price that the landlords may charge from tenants. It is set by law and imposes a limit on how much the rent may rise in a specific area.
Governments have been trying