--- title: "Meaning & Key Takeaway of: Economics is haunted by more fallacies…" description: "\"“Economics is haunted by more fallacies than any other study known to man. This is no accident. The inherent difficulties of the subject would be great..." image: "https://sms4smile.com/quotes/i/4e9/henry-hazlitt-2839_clear-thinking_economics-is-haunted-by-more-fallacies-t_2763138.jpg" --- # Economics is haunted by more fallacies than any other… ![“Economics is haunted by more fallacies than any other study known to man. This is no accident. The inherent difficulties of the subject would be great enough in any case, but they are multiplied a thousandfold by a factor that is insignificant in, say, physics, mathematics or medicine - the…” quote by Henry Hazlitt](https://sms4smile.com/quotes/i/4e9/henry-hazlitt-2839_clear-thinking_economics-is-haunted-by-more-fallacies-t_2763138.jpg) [Download](https://sms4smile.com/quotes/i/4e9/henry-hazlitt-2839_clear-thinking_economics-is-haunted-by-more-fallacies-t_2763138.jpg) [Open image](https://sms4smile.com/quotes/i/4e9/henry-hazlitt-2839_clear-thinking_economics-is-haunted-by-more-fallacies-t_2763138.jpg) > ““Economics is haunted by more fallacies than any other study known to man. This is no accident. The inherent difficulties of the subject would be great enough in any case, but they are multiplied a thousandfold by a factor that is insignificant in, say, physics, mathematics or medicine - the special pleading of selfish interests. While every group has certain economic interests identical with those of all groups, every group has also, as we shall see, interests antagonistic to those of all other groups. While certain public policies would in the long run benefit everybody, other policies would benefit one group only at the expense of all other groups. The group that would benefit by such policies, having such a direct interest in them, will argue for them plausibly and persistently. It will hire the best buyable minds to devote their whole time to presenting its case. And it will finally either convince the general public that its case is sound, or so befuddle it that clear thinking on the subject becomes next to impossible. In addition to these endless pleadings of self-interest, there is a second main factor that spawns new economic fallacies every day. This is the persistent tendency of man to see only the immediate effects of a given policy, or its effects only on a special group, and to neglect to inquire what the long-run effects of that policy will be not only on that special group but on all groups. It is the fallacy of overlooking secondary consequences.”” [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Economic analysis is clouded by self‑interest and short‑term focus, leading to fallacies that ignore long‑run, group‑wide consequences. **In simple terms:** Self‑interest and short‑term view cause economic errors. Key Takeaway Consider long‑term, broad impacts. Themes economics bias policy analysis Mood skeptical inquisitive Type critical educational When to use this quote - government regulation - tax policy - environmental legislation - financial reforms Key Concepts self‑interest secondary effects public good Questions to Reflect On - How can we detect hidden self‑interest in policy? - What methods reveal long‑term consequences? A Different Perspective Not all policies are driven solely by self‑interest; some are evidence‑based. ★ ★ ★ ★ ★ No ratings yet [Clear thinking](https://sms4smile.com/quotes/about/clear-thinking/) [Economic Fallacies](https://sms4smile.com/quotes/about/economic-fallacies-708206/) [Economics](https://sms4smile.com/quotes/about/economics/) [Education](https://sms4smile.com/quotes/about/education/) [Every day](https://sms4smile.com/quotes/about/every-day/) [Fallacies](https://sms4smile.com/quotes/about/fallacies/) [Fallacy Overlooking](https://sms4smile.com/quotes/about/fallacy-overlooking-3184789/) [Groups Fallacy](https://sms4smile.com/quotes/about/groups-fallacy-3184788/) [Known To Man](https://sms4smile.com/quotes/about/known-to-man/) [Long run](https://sms4smile.com/quotes/about/long-run/) [Selfish Interests](https://sms4smile.com/quotes/about/selfish-interests-595673/) ## Related quotes > [The key insight of Adam Smith's Wealth of Nations is misleadingly simple: if an exchange between two parties is voluntary, it will not take…](https://sms4smile.com/quotes/milton-friedman/the-key-insight-of-adam-smith-s-wealth-of-nations-is-misleadingly/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Most economic fallacies derive from the tendency to assume that there is a fixed pie, that one party can gain only at the expense…](https://sms4smile.com/quotes/milton-friedman/most-economic-fallacies-derive-from-the-tendency-to-assume-that-there/) [Milton Friedman](https://sms4smile.com/quotes/author/milton-friedman/) > [Economics is haunted by more fallacies than any other study known to man. This is no accident. The inherent difficulties of the subject would…](https://sms4smile.com/quotes/henry-hazlitt/economics-is-haunted-by-more-fallacies-than-any-other-study-known-to/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [Economics is haunted by more fallacies than any other study known to man](https://sms4smile.com/quotes/henry-hazlitt/economics-is-haunted-by-more-fallacies-than-any-other-study-known-to-2/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [“Adam Smith expanded on this notion by saying that a person pursing his own selfish interests may be “led by an invisible hand to…](https://sms4smile.com/quotes/sean-masaki-flynn/adam-smith-expanded-on-this-notion-by-saying-that-a-person-pursing/) [Sean Masaki Flynn](https://sms4smile.com/quotes/author/sean-masaki-flynn/) > [Advertising is the place where the selfish interests of the manufacturer coincide with the interests of society.](https://sms4smile.com/quotes/david-ogilvy/advertising-is-the-place-where-the-selfish-interests-of-the/) [David Ogilvy](https://sms4smile.com/quotes/author/david-ogilvy/) > [Our Savior gave Himself in unselfish service. He taught that each of us should follow Him by denying ourselves of selfish interests in order…](https://sms4smile.com/quotes/dallin-h-oaks/our-savior-gave-himself-in-unselfish-service-he-taught-that-each-of/) [Dallin H. Oaks](https://sms4smile.com/quotes/author/dallin-h-oaks/) > [You have endless energy only when you are working for the good of the whole - you have to stop working for your little…](https://sms4smile.com/quotes/peace-pilgrim/you-have-endless-energy-only-when-you-are-working-for-the-good-of-the/) [Peace Pilgrim](https://sms4smile.com/quotes/author/peace-pilgrim/) > [“Problems in 21st Century – 1 Well educated and rapidly communicated, looks as smart gentleman but practices the least Morals. 2 Globally communicated –…](https://sms4smile.com/quotes/dr-t-v-rao-md/problems-in-21st-century-1-well-educated-and-rapidly-communicated/) [Dr.T.V.Rao MD](https://sms4smile.com/quotes/author/dr-t-v-rao-md/) > [I think it's good to have your own selfish interests, whether it's liking chocolate ice cream or wanting a new car. It's just human…](https://sms4smile.com/quotes/les-wexner/i-think-it-s-good-to-have-your-own-selfish-interests-whether-it-s/) [Les Wexner](https://sms4smile.com/quotes/author/les-wexner/) > [How soon the labor of men would make a paradise of the earth were it not for misgovernment and a diversion of his energies…](https://sms4smile.com/quotes/thomas-jefferson/how-soon-the-labor-of-men-would-make-a-paradise-of-the-earth-were-it/) [Thomas Jefferson](https://sms4smile.com/quotes/author/thomas-jefferson/) > [The marketplace obliges men, whether they will or not, in pursuing their own selfish interests, to connect the general good with their own individual…](https://sms4smile.com/quotes/edmund-burke/the-marketplace-obliges-men-whether-they-will-or-not-in-pursuing/) [Edmund Burke](https://sms4smile.com/quotes/author/edmund-burke/) > [“Across the centuries the moral systems from medival chivalry to Bruce Springsteen love anthems have worked the same basic way. They take immediate selfish…](https://sms4smile.com/quotes/david-brooks/across-the-centuries-the-moral-systems-from-medival-chivalry-to-bruce/) [david brooks](https://sms4smile.com/quotes/author/david-brooks/) > [It can be rebuilt if other countries with selfish interests will not meddle, as has been done in the past.](https://sms4smile.com/quotes/bulent-ecevit/it-can-be-rebuilt-if-other-countries-with-selfish-interests-will-not/) [Bulent Ecevit](https://sms4smile.com/quotes/author/bulent-ecevit/) > [If your actions are motivated by selfish interests rather than God, you are mortgaging tomorrow's joy.](https://sms4smile.com/quotes/t-b-joshua/if-your-actions-are-motivated-by-selfish-interests-rather-than-god/) [T. B. Joshua](https://sms4smile.com/quotes/author/t-b-joshua/) ## More by Henry Hazlitt > [It is often sadly remarked that the bad economists present their errors to the public better than the good economists present their truths. It…](https://sms4smile.com/quotes/henry-hazlitt/it-is-often-sadly-remarked-that-the-bad-economists-present-their/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [“This is perhaps as good a place as any to point out that what distinguishes many reformers from those who cannot accept their proposals…](https://sms4smile.com/quotes/henry-hazlitt/this-is-perhaps-as-good-a-place-as-any-to-point-out-that-what/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [Government can't give us anything without depriving us of something else.](https://sms4smile.com/quotes/henry-hazlitt/government-can-t-give-us-anything-without-depriving-us-of-something/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [When the government makes loans or subsidies to business, what it does is to tax successful private business in order to support unsuccessful private…](https://sms4smile.com/quotes/henry-hazlitt/when-the-government-makes-loans-or-subsidies-to-business-what-it-does/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [“The analysis of our illustrations has taught us another incidental lesson. This is that, when we study the effects of various proposals, not merely…](https://sms4smile.com/quotes/henry-hazlitt/the-analysis-of-our-illustrations-has-taught-us-another-incidental/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [There is a profound contrast between the effects of foreign aid and of voluntary private investment: foreign aid goes from government to government. It…](https://sms4smile.com/quotes/henry-hazlitt/there-is-a-profound-contrast-between-the-effects-of-foreign-aid-and/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [The mounting burden of taxation not only undermines individual incentives to increased work and earnings, but in a score of ways discourages capital accumulation…](https://sms4smile.com/quotes/henry-hazlitt/the-mounting-burden-of-taxation-not-only-undermines-individual/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [Multiculturalism means your kid has to learn some wretched tribal dirge for the school holiday concert instead of getting to sing 'Rudolph the Red-Nosed…](https://sms4smile.com/quotes/henry-hazlitt/multiculturalism-means-your-kid-has-to-learn-some-wretched-tribal/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [It is possible to increase paper-money income to any amount by debasing the currency. But real income can only be increased by working harder…](https://sms4smile.com/quotes/henry-hazlitt/it-is-possible-to-increase-paper-money-income-to-any-amount-by/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [Inflation makes the extension of socialism possible by providing the financial chaos in which it flourishes. The fact is that socialism and inflation are…](https://sms4smile.com/quotes/henry-hazlitt/inflation-makes-the-extension-of-socialism-possible-by-providing-the/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [“the desperate need to get back to normal housing and other living conditions stimulated increased efforts. But this does not mean that property destruction…](https://sms4smile.com/quotes/henry-hazlitt/the-desperate-need-to-get-back-to-normal-housing-and-other-living/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [Yet it ought to be clear that a minimum wage law is, at best, a limited weapon for combatting the evil of low wages,…](https://sms4smile.com/quotes/henry-hazlitt/yet-it-ought-to-be-clear-that-a-minimum-wage-law-is-at-best-a-limited/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [“It is a misconception to think of the function or result of machines as primarily one of creating jobs . The real result of…](https://sms4smile.com/quotes/henry-hazlitt/it-is-a-misconception-to-think-of-the-function-or-result-of-machines/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [A certain amount of taxes is of course indispensable to carry on essential government functions. Reasonable taxes for this purpose need not hurt production…](https://sms4smile.com/quotes/henry-hazlitt/a-certain-amount-of-taxes-is-of-course-indispensable-to-carry-on/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) > [A vital function of the free market is to penalize inefficiency and misjudgment and to reward efficiency and good judgment. By distorting economic calculations…](https://sms4smile.com/quotes/henry-hazlitt/a-vital-function-of-the-free-market-is-to-penalize-inefficiency-and/) [Henry Hazlitt](https://sms4smile.com/quotes/author/henry-hazlitt/) [Explore all 148 Henry Hazlitt quotes ](https://sms4smile.com/quotes/author/henry-hazlitt/) ## More Clear thinking quotes > [It is certainly true that principles cannot be more securely founded than on experience and consciously clear thinking.](https://sms4smile.com/quotes/albert-einstein/it-is-certainly-true-that-principles-cannot-be-more-securely-founded/) [Albert Einstein](https://sms4smile.com/quotes/author/albert-einstein/) > [“Ever since puberty I have believed in the value of two things: kindness and clear thinking. At first these two remained more or less…](https://sms4smile.com/quotes/bertrand-russell/ever-since-puberty-i-have-believed-in-the-value-of-two-things/) [Bertrand Russell](https://sms4smile.com/quotes/author/bertrand-russell/) > [“the typical response to scarcity is a lapse in clear thinking. Assess products and services solely on the basis of their price and benefits.…](https://sms4smile.com/quotes/rolf-dobelli/the-typical-response-to-scarcity-is-a-lapse-in-clear-thinking-assess/) [Rolf Dobelli](https://sms4smile.com/quotes/author/rolf-dobelli/) > [Clear thinking becomes clear writing; one can't exist without the other.](https://sms4smile.com/quotes/william-zinsser/clear-thinking-becomes-clear-writing-one-can-t-exist-without-the-other/) [William Zinsser](https://sms4smile.com/quotes/author/william-zinsser/) > [“You hear, O LORD, the desire of the afflicted; you encourage them, and you listen to their cry. . . . PSALM 10:17 OCTOBER 1 As long…](https://sms4smile.com/quotes/norman-vincent-peale/you-hear-o-lord-the-desire-of-the-afflicted-you-encourage-them-and/) [Norman Vincent Peale](https://sms4smile.com/quotes/author/norman-vincent-peale/) > [“You will have relatively less problems to solve, if you don't confuse problems with inconveniences.”](https://sms4smile.com/quotes/amit-kalantri/you-will-have-relatively-less-problems-to-solve-if-you-don-t-confuse/) [Amit Kalantri](https://sms4smile.com/quotes/author/amit-kalantri/) > [“These, then, are the two points I wanted to make. First, that human beings, all over the earth, have this curious idea that they…](https://sms4smile.com/quotes/c-s-lewis-2/these-then-are-the-two-points-i-wanted-to-make-first-that-human/) [C.S. Lewis](https://sms4smile.com/quotes/author/c-s-lewis-2/) > [Healing is the result of clear thinking.](https://sms4smile.com/quotes/ernest-holmes/healing-is-the-result-of-clear-thinking/) [Ernest Holmes](https://sms4smile.com/quotes/author/ernest-holmes/) > [Good design is a lot like clear thinking made visual.](https://sms4smile.com/quotes/edward-tufte/good-design-is-a-lot-like-clear-thinking-made-visual/) [Edward Tufte](https://sms4smile.com/quotes/author/edward-tufte/) > [“social media addict? This is a very real problem—so much so that researchers from Norway developed a new instrument to measure Facebook addiction called…](https://sms4smile.com/quotes/caroline-leaf/social-media-addict-this-is-a-very-real-problem-so-much-so-that/) [Caroline Leaf](https://sms4smile.com/quotes/author/caroline-leaf/) > [“What I want to do is to help you, the individual, to cross the stream of suffering, confusion and conflict, through deep and complete…](https://sms4smile.com/quotes/jiddu-krishnamurti/what-i-want-to-do-is-to-help-you-the-individual-to-cross-the-stream/) [Jiddu Krishnamurti](https://sms4smile.com/quotes/author/jiddu-krishnamurti/) > [Nostalgia is one of the great enemies of clear thinking about the family. The disruption of families in the nineteenth century through death, separation,…](https://sms4smile.com/quotes/joseph-featherstone/nostalgia-is-one-of-the-great-enemies-of-clear-thinking-about-the/) [Joseph Featherstone](https://sms4smile.com/quotes/author/joseph-featherstone/) > [I have a hankering to go back to the Orient and discard my necktie. Neckties strangle clear thinking.](https://sms4smile.com/quotes/lin-yutang/i-have-a-hankering-to-go-back-to-the-orient-and-discard-my-necktie/) [Lin Yutang](https://sms4smile.com/quotes/author/lin-yutang/) > [Short, sweet, and to the point. Clear writing, and therefore clear commands, comes from clear thinking. Think simple.](https://sms4smile.com/quotes/tim-ferriss/short-sweet-and-to-the-point-clear-writing-and-therefore-clear/) [Tim Ferriss](https://sms4smile.com/quotes/author/tim-ferriss/) > [“Hire great writers If you are trying to decide among a few people to fill a position, hire the best writer. It doesn’t matter…](https://sms4smile.com/quotes/jason-fried/hire-great-writers-if-you-are-trying-to-decide-among-a-few-people-to/) [Jason Fried](https://sms4smile.com/quotes/author/jason-fried/) [Browse all 74 Clear thinking quotes ](https://sms4smile.com/quotes/about/clear-thinking/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "“Economics is haunted by more fallacies than any other study known to man. This is no accident. The inherent difficulties of the subject would be great enough in any case, but they are multiplied a thousandfold by a factor that is insignificant in, say, physics, mathematics or medicine - the special pleading of selfish interests. While every group has certain economic interests identical with those of all groups, every group has also, as we shall see, interests antagonistic to those of all other groups. While certain public policies would in the long run benefit everybody, other policies would benefit one group only at the expense of all other groups. The group that would benefit by such policies, having such a direct interest in them, will argue for them plausibly and persistently. It will hire the best buyable minds to devote their whole time to presenting its case. And it will finally either convince the general public that its case is sound, or so befuddle it that clear thinking on the subject becomes next to impossible. In addition to these endless pleadings of self-interest, there is a second main factor that spawns new economic fallacies every day. This is the persistent tendency of man to see only the immediate effects of a given policy, or its effects only on a special group, and to neglect to inquire what the long-run effects of that policy will be not only on that special group but on all groups. It is the fallacy of overlooking secondary consequences.”", "creator": { "@type": "Person", "name": "Henry Hazlitt" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/henry-hazlitt/economics-is-haunted-by-more-fallacies-than-any-other-study-known-to-3/", "about": { "@type": "Thing", "name": "Clear thinking" }, "@id": "https://sms4smile.com/quotes/henry-hazlitt/economics-is-haunted-by-more-fallacies-than-any-other-study-known-to-3/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/4e9/henry-hazlitt-2839_clear-thinking_economics-is-haunted-by-more-fallacies-t_2763138.jpg", "contentUrl": "https://sms4smile.com/quotes/i/4e9/henry-hazlitt-2839_clear-thinking_economics-is-haunted-by-more-fallacies-t_2763138.jpg", "url": "https://sms4smile.com/quotes/i/4e9/henry-hazlitt-2839_clear-thinking_economics-is-haunted-by-more-fallacies-t_2763138.jpg", "width": 1080, "height": 1080, "caption": "“Economics is haunted by more fallacies than any other study known to man. This is no accident. The inherent…” — Henry Hazlitt", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Henry Hazlitt", "item": "https://sms4smile.com/quotes/author/henry-hazlitt/" }, { "@type": "ListItem", "position": 4, "name": "“Economics is haunted by more fallacies...", "item": "https://sms4smile.com/quotes/henry-hazlitt/economics-is-haunted-by-more-fallacies-than-any-other-study-known-to-3/" } ], "@id": "https://sms4smile.com/quotes/henry-hazlitt/economics-is-haunted-by-more-fallacies-than-any-other-study-known-to-3/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```