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Discuss: Does Economics Harm the Public?

Posted By Barry Ritholtz On July 16, 2013 @ 7:30 pm In Really, really bad calls | Comments Disabled

Salon [1] states that “dumbed-down output” from some economists are having tragic results.

I look at it differently — I see a disconnect between the way people actually behave and the expectations of economic models. Call it a failure of ideology.

Regardless, here is what Salon claims as the top 10 economic myths [2] having a negative impact:

• Myth 1: Economics is a science.
• Myth 2: The goal of economic policy is maximizing efficiency.
• Myth 3: The economy is a market.
• Myth 4: Prices reflect value.
• Myth 5: All profitable activities are good for the economy.
• Myth 6: Monopolies and oligopolies are always bad because they distort prices.
• Myth 7: Low wages are good for the economy.
• Myth 8: “Industrial policy” is bad.
• Myth 9: The best tax code is one that doesn’t pick winners.
• Myth 10: Trade is always win-win.

Whats the collective view on this? Are they right or wrong?  In the ballpark?

What say ye?

 


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2013/07/econ-101-is-killing-america/

URLs in this post:

[1] Salon: http://www.salon.com/2013/07/08/how_%E2%80%9Cecon_101%E2%80%9D_is_killing_america/singleton/print/

[2] 10 economic myths: http://www.salon.com/2013/07/08/how_%E2%80%9Cecon_101%E2%80%9D_is_killing_america/

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