For several years I have kept a record of some of the flawed and fallacious statements that people, particularly people in the know, make about economic topics. Instead of just keeping them for my own entertainment, I have decided to publish these statements on the Internet, along with my account of the truth.
Since I have collected so many, I will start with flaws and fallacies related to money and banking for two reasons. First, pundits have, for the most part, ignored the importance of money in the recent economic depression (2008). Second, this provides a good set of discussion topics to accompany my presentation “Money Matters”.
I do not intend to make exhaustive comments here. Important topics I will expand in another sections.
See Sub-menu for Money Flaws & Fallacies.
A PDF version of this article: Economic Flaws & Fallacies, Money & Banking
One large fallacy, which I have not included in this list, deserves more attention:
In an exercise in bad math, and very bad logic, some people have argued that the money supply must expand perpetually for at least three reasons. These argument simply do not hold water.