The art of economics consists in looking not merely at the immediate but at the longer effects of...

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

Fallacy

Creative 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

Fallacy

There 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

Fallacy

Good fences may make good neighbors but not good economicsFree trade

Also the fallacy that immigrates cause unemployment

Protectionism

The Money is Wealth

Fallacy

Prices 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