The Fallacy of Ignoring Opportunity Costs from "summary" of Economics in One Lesson by Henry Hazlitt
The error of ignoring opportunity costs is a common one in economic thinking. People tend to focus only on the immediate benefits of a particular action or policy, without considering what could have been gained by choosing a different course of action. This leads to a skewed understanding of the true costs and benefits involved. When we make a decision, we are not just choosing between the benefits of that decision and doing nothing at all. We are also giving up the benefits that could have been gained by choosing a different option. This is the essence of opportunity cost - the value of what is foregone in order to pursue a particular course of action. For example, if a government decides to allocate funds to a new infrastructure project, they may only consider the benefits of job...
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