In the economic sphere an act, a habit, an institution, a law produces not only one effect, but a series of effects. Of these effects, the first alone is immediate; it appears simultaneously with its cause; it is seen. The other effects emerge only subsequently; they are not seen; we are fortunate if we foresee them.
There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.
The essay went on to illustrate this with what is now known as the Parable of the Broken Window. Economists consider this one of the earliest -- and certainly the clearest -- explications of the concept of opportunity cost. More than that, though, it laid out a way of thinking about the world that went beyond economics. The great economics journalist Henry Hazlitt wrote his seminal text, Economics in One Lesson, based entirely upon Bastiat's essay.
So why is a 19th century essay relevant today? Well, it wouldn't be if its concepts had been internalized by everyone. But they haven't been, and governments constantly make disastrous policies that could have been avoided if policy makers simply looked at the world through the lens of the Seen and the Unseen. That is exactly what I will attempt to do in this weekly podcast. Every week, I will get experts from different fields to lay bare the inner workings of their domains, and to show how policies framed with the best intentions often have the worst consequences.
A new episode of The Seen and the Unseen will be uploaded every Tuesday. I hope you enjoy it!