Tag: economic fallacies
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4 Ways Economists Think We’re All Wrong – Econ Chronicles (Bryan Caplan)
This is an excellent series of animated videos about some basic economic principles done by Bryan Caplan. (I particularly like the ones on foreign trade and the pessimistic bias.) The first video is an introduction. Each of the next four deal with a particular type of widespread bias. I'm not saying I give unqualified support…
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Narrowing Inequality?
From Economic Facts and Fallacies by Thomas Sowell The World Bank, among others, has produced statistics showing that the ratio between the incomes of the 20 highest income countries and the 20 lowest income countireshas grown over the period from 1960-2000, rising from about 23-to-one to about 36-to-one. Some have used such data to claim,…
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Economic Falacies: Pay Equals Importance
The “Pay Equals Importance” fallacy maintains that the wages and salaries people are paid should be commensurate with the importance of their work. People frequently lament that schoolteachers make so little money, but a famous basketball player like Kobe Bryant makes 30 million dollars annually (including endorsements, etc.). After all, teaching our children is far…
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Economic Fallacies: “Living Wage”
The "living wage" fallacy says that businesses are morally obliged to pay workers a wage that will sustain their lives. The idea of an obligatory living wage is an anachronistic superimposition of feudalism upon a modern exchange economy. Serfs had no mobility and no choice but to take what the lord gave them. A living…
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Economic Fallacies: Final Thoughts and Index
We have come to the end of posts on economic fallacies Christians believe. These ten are among the ones I most frequently encounter in conversations and writing. I hope these all made sense. But my question to you is, What fallacies did I miss? Any suggestions? I may add more to this series in the…
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Economic Fallacies: “Government Equals Society”
The "Government Equals Society" fallacy views government as the means by which society acts. Frequently we hear that society has a responsibility to the poor. Most Christians of all stripes would agree. But listen to the sentence that often follows such a declaration. It goes something like this, "Therefore, 'society' should raise the minimum wage,…
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Economic Fallacies: “Capitalism Based on Greed”
The "Capitalism Based on Greed" fallacy says that greed and selfishness are inherent in capitalism. The assertion that capitalism is based on greed and selfishness is one of the most common fallacies. This fallacy has many layers, but we must first acknowledge that greed exists within capitalism, just as it does in every economic system!…
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Economic Fallacies: “‘Free Markets’ Equals Lawlessness”
The "'Free Markets Equals' Lawlessness" fallacy understands free markets as markets without any restriction on the activities of individuals or corporations. To examine the idea of free markets, let's look at one of our most cherished freedoms: freedom of speech. Most Americans see free speech as a very positive thing. They seek to protect it…
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Economic Fallacies: “Linear Projection”
The Linear Projection Fallacy projects present circumstances and trends endlessly into the future without allowing for innovation and societal change. There are about 300 million people in the USA today. About 13% (39 million) would say they were Black, and another 13% would say they were Hispanic. Let's say that by this century's end, we…