Milton Friedman - Economic Myths
Myths are like an air mattress. They are terribly comfortable, and when deflated, cause a serious jolt. Josh Billings: "It ain't what people know that causes trouble. It's what they know that ain't so." Myth #1: Robber Baron myth - that in the 19 century there was an era of unrestrained rugged individualism in which heartless monopoly capitalists exploited the poor unmercifully. Myth #2: Great Depression myth - 1929-late 30s was a failure of private enterprise. Myth #3: Demand for government service - govt. had to step in because of failure of private market and great demand for government services. Myth #4: Free Lunch myth - that there is such a thing as free lunch. Myth #5: Robin Hood Myth - That government operates by taking from the rich and giving to the poor. Myth #1 - has roots in the Greenback Party movement - "all problems could be solved by printing more money"; Free silver movement - William Jennings Bryant "Will mankind b...