Sunday, August 08, 2004

This is a thought-provoking essay about economic myths.

I am not in a position to wholly accept or reject the author's premises and conclusions (but that doesn't prevent me from spouting off, of course :-)), but here are my comments:

1. Regarding the 'broken window' myth, the reason why people don't complain about the foregone comfort and leisure is that people only start protesting vociferously when an existing privilege or comfort is taken away from them; it is more difficult to take offence at something that is as abstract as a privilege that one would have obtained if things had happened in some other way.

2. Myth #5 (governments' policies to promote exports) directly contradict the actions of our government.

3. I especially like the way the author puts to the sword the actions of businessmen "[who] proclaimed their devotion to free enterprise and their opposition to arbitrary intervention into our economic life by the state. Except, of course, for their own case, which was always unique and which was justified by their immense concern for the public interest."

4. One contention of the author that I don't agree with is that envy is the chief impediment to wealth-creation and development in the Third World.