5 myths many economists believe..

Donald Boudreaux lists the five myths:

(5) The idea that government-subsidized health care will lower the cost of health care.

(4) The notion that government must have monopoly control over the money supply in order to ensure sound performance of the economy.

(3) The belief that large differences among people in monetary incomes or monetary wealth reflect some “market failure” that ought to be “addressed” by the state.

(2) The blind faith that government officials in democratic societies can be trusted to exercise power over people who economists do not trust to make choices for themselves.

(1-b) The notion that welfare payments (other than EITC) “subsidize” employers by pushing workers’ wages lower.

(1-a) The notion that the minimum wage is, or can practically be, a boon to all low-skilled workers.

All the other are still argued by econs and public. The number 4 is hardly even discussed.

Having said this, Mr Bourdeaux misses the biggest myth. This is the amount of self belief and hubris economists have in their own powers to sort economic matters.


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