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No very deep knowledge of economics is usually needed for grasping the immediate effects of a measure; but the task of economics is to foretell the remoter effects, and so to allow us to avoid such acts as attempt to remedy a present ill by sowing the seeds of a much greater ill for the future.
Ludwig Von Mises
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Interpretation

What this quote means

Understanding economics involves recognizing both immediate and long-term effects of actions.

Ludwig Von Mises emphasizes the importance of foresight in economics. While it may be straightforward to understand the immediate impact of economic policies or measures, the true challenge lies in predicting their long-term consequences. Policymakers must be cautious not to address current problems with solutions that could lead to more significant issues in the future, thus highlighting the intricate and often unpredictable nature of economic systems.

Themes

EconomicsForesightPolicyConsequencesCaution

In practice

Example use cases

In a lecture on economic policy, I quoted Mises to remind students of the importance of considering long-term impacts.

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Each epoch has found in the Gospels what it sought to find there, and has overlooked what it wished to overlook.
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