TEHRAN - Donya-e-Eqtesad Publication has released “Economics in Two Lessons” authored by John Quiggin and translated by Haniyeh Sadat Jafariyeh. Datis Khajeheian, Associate Professor at the Faculty of Management, University of Tehran, has contributed an introduction to the Persian translation of the book.

Printed by Donya-e-Eqtesad Publication, a firm specializing in human sciences, particularly economics, the book spans 397 pages, Mehr reported.

Originally published in 2017 as a response to Henry Hazlitt's “Economics in One Lesson,” Quiggin's book serves as a comprehensive exploration of the foundational concepts behind the triumphs and shortcomings of free-market economics.

Hazlitt's influential “Economics in One Lesson,” dating back to 1946, propagated the idea that economics could be distilled into a single lesson: market prices accurately represent the true cost of all goods and services.

Quiggin, an Australian economist and professor at the University of Queensland, challenges the one-lesson approach, contending that it only conveys part of the narrative. While it can elucidate why markets often function effectively, it falls short in explaining their frequent failures and what steps to take when they falter. Nobel Prize-winning economist Paul Samuelson humorously suggested, “When someone preaches 'Economics in one lesson,' I advise: Go back for the second lesson.”

In “Economics in Two Lessons,” Quiggin, who holds a Doctor of Philosophy in economics from the University of New England, elaborates on why market prices frequently fail to encompass the complete societal cost of our choices. For instance, activities like driving a car, flying, or using electricity contribute to global warming. However, without a price assigned to carbon emissions, the costs of such actions are shouldered by everyone else. In such instances, governmental intervention becomes imperative for achieving more favorable outcomes.

The two-lesson approach necessitates moving away from the dogmatism of laissez-faire and the automatic assumption that every economic issue can be resolved solely through government intervention. Instead, it advocates for a balanced approach, incorporating both market forces and government policies. The potential benefit is substantial: gaining insight into how markets truly operate and determining effective courses of action when they malfunction.

SS/SAB