Book Author: Henry Hazlitt

Henry Hazlitt was not just a journalist but a profound thinker whose influence on economic thought extends far beyond his lifetime.

Known for his unwavering defense of free-market economics and his articulate critiques of Keynesianism, Hazlitt’s writings have shaped the course of modern economic theory. His work, which spans multiple decades, is celebrated for its clarity, intellectual rigor, and deep commitment to the principles of individual liberty and economic freedom.

This article delves into Hazlitt’s life, career, major works, economic philosophy, and enduring legacy.

Early Life and Education

Background and Family History

Henry Stuart Hazlitt was born on November 28, 1894, in Philadelphia, Pennsylvania, into a family of modest means. His father passed away when Hazlitt was still an infant, leaving his mother to raise him alone. Shortly after, Hazlitt and his mother moved to Brooklyn, New York, where he would spend the majority of his childhood. Growing up in a single-parent household instilled in Hazlitt a sense of responsibility and self-reliance that would later become central themes in his work.

Schooling and Early Interests

Hazlitt attended Boys’ High School in Brooklyn, where his exceptional intellect became evident. Though he was an excellent student, he was more interested in self-directed learning than formal education. This led him to leave the City College of New York after only a short time, opting instead to educate himself through extensive reading. Hazlitt was deeply influenced by the writings of classical liberal thinkers such as Herbert Spencer and John Stuart Mill, whose ideas on individual liberty and limited government resonated with him.

Development of Writing Skills

From a young age, Hazlitt was passionate about writing. He began his career as a freelance journalist in his teens, contributing articles to various magazines and newspapers. His ability to simplify complex ideas and present them in clear, engaging prose quickly earned him a reputation as a talented writer. This early experience in journalism laid the groundwork for his future success as a leading economic commentator and author.

Career in Journalism

Positions Held at Various Publications

Hazlitt’s career in journalism was both prolific and influential. Over the years, he held positions at some of the most prestigious publications in the United States. He began his career as a financial editor at The New York Evening Mail, where he wrote a daily column on economic issues. His work caught the attention of the editors at The New York Times, and in 1934, he was hired as the paper’s financial editor and editorial writer. Hazlitt’s tenure at The New York Times was marked by his staunch opposition to the New Deal policies of President Franklin D. Roosevelt, which he believed would lead to economic inefficiency and loss of individual freedom. After leaving The New York Times in 1946, Hazlitt continued his career at Newsweek, where he wrote the influential “Business Tides” column. This column, which ran for more than two decades, was widely read by both economists and the general public. In addition to his work at Newsweek, Hazlitt contributed to The Wall Street Journal, The Freeman, and other prominent publications, solidifying his reputation as a leading voice in economic journalism.

Contributions to Economic Journalism

Hazlitt’s contributions to economic journalism were groundbreaking. He was one of the first journalists to challenge the prevailing economic orthodoxy of the time, particularly Keynesian economics, which dominated public policy discussions in the mid-20th century. Hazlitt argued that Keynesian policies, which advocated for government intervention in the economy to manage demand and prevent recessions, were fundamentally flawed. He believed that these policies ignored the long-term consequences of short-term economic fixes and would lead to inflation, economic instability, and a loss of individual freedom.

In his writing, Hazlitt emphasized the importance of understanding economics as a study of both immediate and secondary consequences. He often pointed out that while government intervention might provide short-term relief, it would create long-term problems by distorting market signals and creating inefficiencies. This perspective was in stark contrast to the Keynesian view, which prioritized short-term economic stability over long-term considerations.

Notable Editorials and Columns

Throughout his career, Hazlitt penned numerous editorials and columns that left a lasting impact on economic thought. His “Business Tides” column in Newsweek became one of the most widely read economic commentaries of the time. In this column, Hazlitt consistently argued against government intervention in the economy, inflationary monetary policies, and excessive taxation. He also wrote several notable editorials for The New York Times and The Wall Street Journal that critiqued the economic policies of the day and offered alternative solutions based on free-market principles. One of Hazlitt’s most famous editorials, “The Lesson in One Lesson,” was a precursor to his seminal book Economics in One Lesson. In this editorial, Hazlitt distilled the essence of sound economic thinking into a single, simple lesson: that good economics considers the long-term consequences of policies for all groups, not just the immediate effects for some. This editorial, like much of Hazlitt’s work, emphasized the importance of looking beyond the obvious and considering the broader impact of economic policies.

Major Works and Publications

Economics in One Lesson

Published in 1946, Economics in One Lesson is Hazlitt’s most influential and enduring work. The book was written as a response to the growing popularity of Keynesian economics and the widespread belief that government intervention was necessary to manage the economy. In Economics in One Lesson, Hazlitt simplifies complex economic concepts and makes them accessible to the average reader. The book is structured around a single principle: that the true cost of any economic policy must take into account not just its immediate effects, but also its long-term consequences for all groups in society. Economics in One Lesson became an instant classic and has been translated into multiple languages. It is widely regarded as one of the best introductions to economic principles and is still used as a textbook in economics courses around the world. The book’s clear, concise style and practical examples make it an invaluable resource for anyone interested in understanding how the economy works.

The Failure of the “New Economics”

In 1959, Hazlitt published The Failure of the “New Economics”, a comprehensive critique of John Maynard Keynes’s General Theory of Employment, Interest, and Money. Hazlitt meticulously dissects Keynes’s arguments and demonstrates how Keynesian economics is based on flawed assumptions and incorrect reasoning. He argues that Keynes’s focus on aggregate demand and government intervention ignores the importance of individual choice, market signals, and the long-term effects of economic policies. The Failure of the “New Economics” is considered one of the most thorough and rigorous critiques of Keynesian economics ever written. Hazlitt’s analysis is not only a rebuttal of Keynes’s ideas but also a defense of classical economic principles, particularly those of the Austrian School of Economics. The book is a testament to Hazlitt’s deep understanding of economic theory and his commitment to intellectual honesty.

The Foundations of Morality

In 1964, Hazlitt ventured beyond economics with the publication of The Foundations of Morality, a book that explores the ethical underpinnings of a free society. In this work, Hazlitt argues that moral principles are essential for the functioning of a free-market economy. He contends that a society based on individual liberty and personal responsibility must be grounded in a moral code that respects the rights of others and promotes voluntary cooperation. The Foundations of Morality is a synthesis of ethical philosophy and economic thought, reflecting Hazlitt’s belief that economics and morality are deeply interconnected. The book draws on the works of classical liberal thinkers, as well as Hazlitt’s own insights, to present a compelling case for a moral foundation based on individualism and respect for human dignity.

Other Significant Books

In addition to his major works, Hazlitt authored several other important books that contribute to his legacy as a thinker and writer. The Way to Will Power (1922) is one of his earliest works, focusing on the importance of self-discipline and personal development. Thinking as a Science (1923) explores the principles of logical thinking and the application of scientific methods to everyday life. Another significant work is Man vs. The Welfare State (1969), in which Hazlitt critiques the expansion of the welfare state and its impact on individual liberty and economic efficiency. In this book, Hazlitt argues that the welfare state, by promoting dependency and undermining personal responsibility, is incompatible with a free society.

Economic Philosophy and Theories

Critique of Keynesian Economics

Hazlitt’s critique of Keynesian economics is one of the central themes of his work. He believed that Keynesianism, with its emphasis on government intervention and demand management, was fundamentally misguided. Hazlitt argued that Keynesian policies, such as deficit spending and monetary expansion, only provided temporary relief at the cost of long-term economic health.

According to Hazlitt, Keynesian economics failed to consider the secondary consequences of economic policies. While government spending might stimulate demand in the short term, it would ultimately lead to inflation, higher taxes, and reduced incentives for productive investment. Hazlitt also criticized Keynes’s focus on aggregate demand, arguing that it ignored the importance of individual preferences, market prices, and the allocation of resources based on consumer demand.

Advocacy for Free Markets

Hazlitt was a passionate advocate for free markets, believing that they were the only economic system capable of ensuring individual freedom and prosperity. He argued that free markets, guided by the price mechanism, allocate resources efficiently and respond to consumer needs in a way that no central planner could replicate. Hazlitt believed that government intervention, whether through price controls, subsidies, or regulation, distorted market signals and led to inefficiencies and unintended consequences.

In his writing, Hazlitt emphasized the importance of property rights, voluntary exchange, and competition as the foundations of a prosperous society. He argued that economic freedom was inseparable from personal freedom and that any infringement on the former would inevitably lead to a loss of the latter.

Influence of Austrian Economics

Although Hazlitt was not formally trained as an economist, he was heavily influenced by the Austrian School of Economics, particularly the works of Ludwig von Mises and Friedrich Hayek. The Austrian School’s emphasis on individual choice, spontaneous order, and the limitations of central planning resonated with Hazlitt’s own beliefs. He shared the Austrian view that economics is a study of human action and that economic theories must be grounded in the realities of human behavior.

Hazlitt’s critique of Keynesianism and his advocacy for free markets were deeply informed by Austrian economic principles. He believed that the market, left to its own devices, was capable of self-regulation and that government intervention would only create distortions and inefficiencies. Hazlitt’s work helped to popularize Austrian economic ideas in the United States and contributed to the revival of classical liberalism in the 20th century.

Legacy and Impact

Influence on Future Economists

Henry Hazlitt’s influence on future generations of economists cannot be overstated. His writings, particularly Economics in One Lesson, have been credited with inspiring countless individuals to pursue careers in economics and to adopt a free-market perspective. Hazlitt’s ability to communicate complex economic ideas in clear, accessible language made his work a gateway for many to the world of economic thought.

Economists such as Thomas Sowell, Walter Williams, and Milton Friedman have cited Hazlitt as a significant influence on their thinking. His work has also had a lasting impact on the Austrian School of Economics, helping to bring its ideas to a broader audience and to challenge the dominance of Keynesianism in economic discourse.

Role in Promoting Classical Liberalism

Hazlitt’s work was instrumental in promoting classical liberalism in the 20th century. At a time when Keynesianism and socialism were gaining popularity, Hazlitt stood as a vocal advocate for individual liberty, limited government, and free markets. His writings provided intellectual ammunition for the classical liberal movement and helped to keep the ideas of personal freedom and economic independence alive during a period of growing government intervention.

Hazlitt’s legacy as a defender of classical liberalism continues to this day. His work is frequently cited by contemporary libertarians and free-market advocates, and his ideas remain relevant in debates over economic policy and the role of government in society.

Recognition and Awards

Despite his significant contributions to economic thought, Hazlitt did not receive the recognition he deserved during his lifetime. However, in the years following his death, his work has been increasingly recognized and celebrated. Hazlitt received several awards and honors for his contributions to economics and journalism, including the Presidential Medal of Freedom from the Ludwig von Mises Institute.

Today, Hazlitt’s books continue to be widely read and respected. Economics in One Lesson remains in print and is considered essential reading for anyone interested in understanding economic principles. Hazlitt’s work is also frequently cited in academic papers, and his influence can be seen in the work of many contemporary economists and political thinkers.

Conclusion

Henry Hazlitt was a towering figure in the world of economic thought, whose writings continue to influence and inspire. His unwavering commitment to the principles of individual liberty, free markets, and limited government made him one of the most important economic thinkers of the 20th century. Hazlitt’s work, particularly Economics in One Lesson, remains a cornerstone of free-market economics and a vital resource for anyone seeking to understand the complexities of economic theory.

Hazlitt’s legacy as a writer, economist, and advocate for freedom is enduring. His work serves as a reminder of the importance of clear thinking, intellectual honesty, and the defense of individual liberty in the face of growing government intervention. As the world continues to grapple with economic challenges, Hazlitt’s insights and ideas remain as relevant today as they were during his lifetime.