"The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups"

Henry Hazlitt underscores a core principle of sound economic reasoning: the importance of evaluating consequences both in the short term and the long term, and for all groups affected rather than just a select few. When considering any economic act or policy, there is a natural human tendency to focus on the most visible, immediate results, what Frédéric Bastiat might have called the “seen” effects. However, beneath these surface-level outcomes often lie less obvious, yet potentially far more significant, repercussions that unfold over time. Ignoring these hidden or delayed effects can lead to flawed policy decisions and unintended harm.

Hazlitt’s perspective calls for an analytical discipline that peels back the initial layer of results to examine what happens further down the line. For instance, a government policy that subsidizes a particular industry may seem beneficial at first by boosting jobs in that sector. However, the resources for such subsidies must come from somewhere, typically from increased taxes or redirected public funds. Over time, this reallocation could stifle other sectors or lead to higher costs for consumers, thus dampening overall economic prosperity. Only by evaluating these longer-term and broader consequences, beyond the headline results, can policymakers avoid falling into the trap of sacrificing lasting welfare for fleeting benefit.

Moreover, Hazlitt insists we consider the effects of policies on every group, not just on those who are most directly or immediately impacted. Benefits provided to one group often translate to burdens or opportunity costs for another. Sound economics operates on the recognition that society is interconnected; what aids one section should not disproportionately disadvantage another, especially if the harms surpass the goods. Such comprehensive analysis is the “art” Hazlitt refers to, not merely a mechanical science but a nuanced practice of thinking beyond present interests and apparent beneficiaries, striving for policies that serve the broader and more enduring good.