In an era marked by economic turbulence, from inflation spikes to tech disruptions, the compass of classical economic thought, particularly that of Henry Hazlitt, offers not just direction but profound insight into our contemporary dilemmas. Hazlitt, a stalwart of free-market principles, provides us with a framework to dissect and potentially resolve the pressing economic issues of our time, all while maintaining a centrist approach that acknowledges the nuanced balance between market freedom and regulatory oversight.

The Echo of the Broken Window
Hazlitt’s most illustrative lesson, the broken window fallacy, remains strikingly relevant as we witness modern governments employing fiscal stimuli in response to economic downturns. The recent infusion of trillions into economies worldwide, while providing immediate relief, echoes Hazlitt’s caution against mistaking destruction for creation. The fallacy here isn’t merely in the act of spending but in the belief that such expenditures are an unalloyed good. The unseen cost is the misallocation of resources that could have fueled innovation, infrastructure, or individual savings, the true drivers of long-term prosperity.
Monetary Missteps and Inflation
Today, as central banks grapple with inflation rates not seen in decades, Hazlitt’s admonitions about the perils of monetary expansion without corresponding productivity gains ring true. The current inflationary environment, partially a consequence of expansive monetary policies, challenges us to reconsider the wisdom of using interest rates and money supply as levers for economic stability. Hazlitt would advocate for a return to sound money principles, where inflation is not an unintended byproduct but managed with precision, ensuring it reflects genuine economic growth rather than artificial stimulus.
The Labor Market Conundrum
Our labor market, with its gig economy, automation, and debates over minimum wage, seems to be a direct descendant of Hazlitt’s economic battlegrou...