re: EBC Book #1 - Economics in One Lesson by Henry Hazlitt

quote:

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Actuarial tools can assess the probability of future income earning potential at the time of loan application. Five and ten year year outcomes can assess whether there was a positive gain or no difference, and whether that positive gain offset the losses.

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Agree. I know he is trying to keep it extremely simple but his assumptions sometimes make the scenarios too simple

There was one situation (not sure which chapter I'm about 1/4 in) where he said something like "assume for a minute there is someone who can take that exact job." He makes the huge assumption that there is skilled labor ready to take an open job and perform it at a competent level. Of course that makes things look rosy, but it's just not realistic.

As I said I know he is trying to keep it simple, but sometimes being too simple makes things look different than they are