A list of economic myths from Don Boudreaux

Here is a list of economic myths from Don Boudreaux.  You can view them as a test of your understanding of basic microeconomics.

– prices and wages on markets are simply “set” by businesses;

– steep increases in the prices of fuel and bottle water in the aftermaths of natural disasters are caused simply by “greed,” and that government-imposed prohibitions on such “price gouging” simply make these goods more affordable and accessible;

– rent control obviously makes apartments more affordable;

– a hike in the minimum wage is a simple and obvious way to help all low-skilled workers;

– stricter government safety regulations obviously make people safer;

– imports from low-wage countries obviously reduce average wages in the U.S. or reduce overall employment in the U.S. (or both);

– trading with foreigners is of course economically different than trading with fellow citizens;

– taxes are obviously paid by the individuals and businesses that government makes responsible for paying the taxes;

– of course the chief source of economic strength and growth is consumer spending, and reductions in consumer spending are inevitably harmful;

– the interests of businesses are obviously at odds with those of consumers and workers;

– advocates of laissez faire simply are “pro-business” and (hence) “anti-consumer” and “anti-labor”;

– of course the rich get richer and the poor get poorer;

– government officials’ chief intention, of course, is to improve the well-being of the public;

– the consequences of any action are simply determined by the intentions of the actor.