10 Left Wing Economic Misconceptions
There is Limited Wealth-
What the Left believes: The economy is a finite pie, with limited slices. Someone having too much takes away from what is left. If too few people control too much, it leaves very little for everyone else.
The Truth is: The Limited Pie Fallacy, or Zero-Sum Fallacy, is the belief that the economy is a fixed pie, with only certain amounts of wealth and resources in existence, those who have are directly impacting those that do not. Renowned economist Milton Friedman once said:
“Most economic fallacies derive from the tendency to assume that there is a fixed pie, that one party can gain only at the expense of another.”
Technology, innovation, and capital investment all lead to capital growth. Just ask The Harvard MBA, he’ll you:
“World economics are definitely NOT a zero-sum game. Were that truly the case, you’d still be sitting around your cave with your buddies Thak and Grunt, snacking on beetles and grubs. Clearly, the world economy is larger today than it was 25 years ago.”
Learn Liberty explains this concept here:
[youtube height=”HEIGHT” width=”WIDTH”]https://www.youtube.com/watch?v=a0nsKBx77EQ[/youtube]
This is precisely why movements like the Occupy Movement that concern themselves with wealth distribution are ineffectual. They’re based on economic fallacies. The 99% cannot possible be suffering due to the success of the 1%, because wealth is created, not distributed, and for the 1% to have become wealthy they had to create economic growth.
Milton Friedman on Limited Resources
[youtube height=”HEIGHT” width=”WIDTH”]https://www.youtube.com/watch?v=WSWv3rX79sI[/youtube]
