Free to a good home: economic perspective

In an unprecedented move today, Treasury Secretary Timothy Geithner asked Congress for the power to regulate non-banking financial companies. If granted, in addition to power wielded over bailed out banks, the Treasury Department could seize control of financial institutions outside the banking industry, essentially nationalizing our country's financial system.

What does this mean for the average American citizen?

Beyond talking points issued by talking heads, many of us taxpayers don't fully understand how a blended economy based on the principles of capitalism is supposed to work. Some of us decry government controls but lack the knowledge to defend our arguments. Others of us vilify for-profit corporations but don't fully understand the implications of our pro-regulation theories. Fortunately, you don't have to be an economist to understand the economy.

Thanks to the omnipresence of the internet, you don't even have to buy a book. Economics in One Lesson by Henry Hazlitt is online in its entirety (Side note: I don't know who Jim is, but I'm glad we at least have such widespread access Hazlitt's work, which is still relevant more than 60 years since its original publication.).

You're busy. I understand. You don't have time to read all your email, much less a whole book (on economics, no less). Humor a tired, cynical blogger and just read a few chapters:

Chapter 1: The Lesson
Chapter 2: The Broken Window
Chapter 5: Taxes Discourage Production
Chapter 6: Credit Diverts Production
Chapter 14: Saving the X Industry

Of course, reading the book cover to cover would be beneficial, too.
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Posted by Natalie Criss