The analysis of our illustrations has taught us another…
““The analysis of our illustrations has taught us another incidental lesson. This is that, when we study the effects of various proposals, not merely on special groups in the short run, but on all groups in the long run, the conclusions we arrive at usually correspond with those of unsophisticated common sense. It would not occur to anyone unacquainted with the prevailing economic half-literacy that it is good to have windows broken and cities destroyed; that it is anything but waste to create needless public projects; that it is dangerous to let idle hordes of men return to work; that machines which increase the production of wealth and economize human effort are to be dreaded; that obstructions to free production and free consumption increase wealth; that a nation grows richer by forcing other nations to take its goods for less than they cost to produce; that saving is stupid or wicked and that squandering brings prosperity.””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
The passage argues that when policies are evaluated over the long term for all groups, the outcomes align with common sense, debunking fallacious economic arguments that favor wasteful or destructive actions.
In simple terms: Long‑run, economy‑wide analysis reveals true effects of policies.
Key Takeaway
Policy impacts must be assessed broadly and over time.
Themes
economic fallacies
common sense
policy analysis
long‑term effects
distributional impact
public choice
Mood
critical
skeptical
inquisitive
Type
analytical
didactic
cautionary
When to use this quote
- government budgeting
- infrastructure planning
- labor market reforms
- technology adoption
- trade negotiations
Key Concepts
cost‑benefit analysis
externalities
resource allocation
economic literacy
Practical Applications
- policy impact assessment
- public education on economics
Questions to Reflect On
- What assumptions lead to short‑term, group‑specific policy evaluations?
- How does broad, long‑run analysis change our view of a policy’s merit?