The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.
Economics
The study of the allocation of scarce resources that have alternative uses.
Fallacies
Fallacy- A fallacy is usually incorrect argument in reasoning resulting in a misconception or presumption
The Broken Window
Fallacy
War, natural disasters, big government spending- don’t help economies
The Free Lunch
Fallacy
Tax, inflation, low interest, creative loans, deficit spending, and the debt
The IsolationFallacy
One group doesn’t make or break the economy, profits and business help other businesses
The Immediate Effect
Fallacy
Look past phase one of economic polices, economic policies live longer than political terms
The Win- Win Fallacy
Everything has a level of scarcity, you cannot have your cake and eat it to
The Composition
FallacyWhat is true for a part doesn’t mean it is true for the whole
The Division Fallacy
What is average for the whole doesn’t mean it is true for each part
The Protection
FallacyCreative destruction hurts but it is necessary, survival of the fittest and laws of nature.Protecting competitors not competitionProtecting those who are on the inside against those on the outside
The Goal
Fallacy
Goals and ideas rarely match true consequences, the market is natural, goals are man made
The Zero-Sum Fallacy
AkaThe Fixed Pie
FallacyWealth doesn’t take from others it builds other
The Chess-Piece
Fallacy
People are human and cannot be counted on like pieces on the chess board
The Open Ended
FallacyThere can always be more of something good but nor at the expense of something elseOpen space, health, safety
The Leveling Fallacy
Like water- price is self leveling, supply and demand, quality
If the government legislates price then supply or demand suffer. If the government legislates price, supply, and demand, than quality suffers.
Additionally, the Government cannot legislate competition. There will always be competition.
The Fence Policy
FallacyGood fences may make good neighbors but not good economics
Free trade
Also the fallacy that immigrates cause unemployment
Protectionism
The Money is Wealth
FallacyPrices are a measurement of wealth, not wealth itself.
The Production for its
own sake Fallacy
Paying someone $200,000 to dig ditches and to fill them back in will not improve the economy
The Correlation =
Causation Fallacy
(false cause, coincidental correlation, correlation not causation): X happened then Y happened; therefore X caused Y
The Post-Hoc Fallacy
The Single Cause
Fallacy
