1. The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.

2. Economics
The study of the allocation of scarce resources that have alternative uses.

3. Fallacies

4. Fallacy- A fallacy is usually incorrect argument in reasoning resulting in a misconception or presumption

5. The Broken Window Fallacy
War, natural disasters, big government spending- don’t help economies

6. The
Free Lunch
Fallacy
Tax, inflation, low interest, creative loans, deficit spending, and the debt

7. The
Isolation
Fallacy
One group doesn’t make or break the economy, profits and business help other businesses

8. Immediate Effect Fallacy
The
Immediate Effect Fallacy
Look past phase one of economic polices, economic policies live longer than political terms

9. The
Win- Win
Fallacy
Everything has a level of scarcity, you cannot have your cake and eat it to

10. The Composition Fallacy The Division Fallacy
What is true for a part doesn’t mean it is true for the whole
The
Division
Fallacy
What is average for the whole doesn’t mean it is true for each part

11. The Protection Fallacy
Creative destruction hurts but it is necessary, survival of the fittest and laws of nature.
Protecting competitors not competition
Protecting those who are on the inside against those on the outside

12. The
Goal
Fallacy
Goals and ideas rarely match true consequences, the market is natural, goals are man made

13. The Zero-Sum Fallacy Aka The Fixed Pie Fallacy
Wealth doesn’t take from others it builds other

14. The Chess-Piece Fallacy
People are human and cannot be counted on like pieces on the chess board

15. The
Open Ended
Fallacy
There can always be more of something good but nor at the expense of something else
Open space, health, safety

16. The
Leveling
Fallacy
Like water- price is self leveling, supply and demand, quality
If the government legislates price then supply or demand suffer. If the government legislates price, supply, and demand, than quality suffers.
Additionally, the Government cannot legislate competition. There will always be competition.

17. The Fence Policy Fallacy
Good fences may make good neighbors but not good economics
Free trade
Also the fallacy that immigrates cause unemployment
Protectionism

18. Prices are a measurement of wealth, not wealth itself.
The
Money is Wealth
Fallacy
Prices are a measurement of wealth, not wealth itself.

19. Production for its own sake
The
Production for its own sake
Fallacy
Paying someone $200,000 to dig ditches and to fill them back in will not improve the economy

20. Correlation = Causation
The
Correlation = Causation
Fallacy
The
Post-Hoc
Fallacy
(false cause, coincidental correlation, correlation not causation): X happened then Y happened; therefore X caused Y

21. The
Single Cause
Fallacy