Monday, July 26, 2004

Myth Busting

Another good article from the Mises Institute, this time about a number of myths that persist among political, economic, and cultural elites. One myth I encounter often is the first one mentioned, the Broken Window fallacy. I usually see it used in regards to war, but I occasionally come across people who use that fallacy when there's a natural disaster like an earthquake. Another good one is the fifth, that government policies to promote exports are a good idea. This thinking is used to justify everything from protectionism to inflation to taxing corporate profits abroad.