“In the economy, an act, a habit, an institution, a
law, gives birth not only to an effect, but to a series of effects. Of these
effects, the first only is immediate; it manifests itself simultaneously with
its cause—it is seen. The others unfold in succession—they are not seen: it is
well for us if they are foreseen. Between a good and a bad economist this
constitutes the whole difference—the one takes account of the visible effect;
the other takes account both of the effects which are seen and also of those
which it is necessary to foresee. Now this difference is enormous, for it
almost always happens that when the immediate consequence is favorable, the
ultimate consequences are fatal, and the converse. Hence it follows that the
bad economist pursues a small present good, which will be followed by a great
evil to come, while the true economist pursues a great good to come, at the
risk of a small present evil.”
Frederic
Bastiat, That Which Is Seen, And That
Which Is Not Seen (1850)
