Economist Robert Reich, former labor secretary for President Clinton, recently posted a video called “Three Myths of the Economy”. In it, he attempts to debunk three “myths” about how our economy works, suggesting that acceptance of these myths leads to socio-economic injustice. Here are his claims and my rebuttals. (more…)
Misleading Claim: “An unhealthy hamburger costs $1, but a healthy salad costs $5. Greedy capitalists are making our kids fat!”
Reality: Producers do not sell goods at arbitrary prices based on profitability or the desire to make people fat. In fact, prices are carefully calculated by consumer value/demand and external factors, such as subsidies. We can debunk this claim with thought experiments and an analysis of the U.S. farm price support programs. (more…)
Pundits often claim that racial disparities in the United States are the result of racist capitalism and freer markets. While they are certainly correct in observing socioeconomic disparities, they often attribute said disparities to a lack of government intervention. But as we’ll demonstrate, from poverty and income to unemployment and education, many things have actually gotten worse for blacks since the interventions of the 1960s. “Racism” is a politically convenient excuse that undermines millions of people and seeks to absolve politicians from their failed programs. But as you’ll see, it has actually been government intervention that perpetuated these racial disparities, not free market capitalism. (more…)
Household income trends are often cited as reason for “solutions” to income inequality. As a raw statistic, HHI is very misleading because it fails to account for individual behavior in any given economy. Let’s do a thought experiment to explain why, and then look at a more accurate measure of income distribution. (more…)
MISLEADING CLAIM: “In America, no one should have to work full time and live in poverty.”
REALITY: Not many people in poverty work full time. The United States does not have a major poverty problem.
MISLEADING CLAIM: “Nebraska ended their private utility model in favor of publicly owned. That’s why they now have extremely low cost electricity.” This claim was made in an article authored by the founder of US Uncut. It’s misleading for a few reasons. Let’s take a look with more in-depth analysis.