Myths and Fallacies in Economic Policy Debate

A fallacy is often based on a correct argument but applied to a wrong set of circumstances. A myth is a worse form of fallacy because it is not true or correct. Myths and fallacies are used across the spectrum of debates on economic policies. Some fallacies keep acquiring a life of their own, and the object of this paper to expose them as such. The fallacies discussed are most commonly found in debates on the economy across a full spectrum of issues. A number of examples are picked as arguments often used in the debates on industry and trade, social amelioration, and macroeconomics. Specifically, the first of these fallacious arguments fall under the protectionism and industrial policy. A second group of policies relate to the debates designed to help improve the condition of the poor. A few important examples are cited in the area of national economic management.