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  1. #1
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    Productivity Fallacy

    This is among the most common fallacies. This is the fallacy that an increase in productivity results in a decrease in employment and a decrease of productivity results in an increase of employment.

    Examples:

    1) Snow is good for our economy because it creates jobs for shovelers, salt miners, fuel/energy companies, and clothing companies.

    2) Media becoming electronic is a bad thing because it is going to unemploy many truck drivers, sales clerks, newspaper deliverers, and etc.

    The reason why this is false is because people have a limited amount of money in their wallets. For example, if my daily budget is $10 and I decide to not spend $2 on a newspaper, but choose to receive the news online for only 25 cents a day, I would be saving $1.75 per day. Of course the decision not to pay for the newspaper would result in people being fired, but the extra money that I would be allocating to something else would employ other people. And if it were to snow much less the next winter, I would be spending less money on salt and shoveling services, but I would have more money to spend on other important priorities.

  2. #2
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    Re: Productivity Fallacy

    This sounds pretty similar (if not the same) to the more interestingly named Broken Window Fallacy. Essentially, the root of the fallacy lies in the failure to account for all the costs (including opportunity costs) of a particular event.
    Trendem

  3. #3
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    Re: Productivity Fallacy

    I understood what the Broken Window Fallacy was before I posted this. Yes they are very similar, but the difference is the example. People would not support acts of crime such as destroying property to create jobs, but my examples are more common.

  4. #4
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    Re: Productivity Fallacy

    Quote Originally Posted by Trendem View Post
    This sounds pretty similar (if not the same) to the more interestingly named Broken Window Fallacy. Essentially, the root of the fallacy lies in the failure to account for all the costs (including opportunity costs) of a particular event.
    lol, as soon as you referenced Bastiat's work that brought back memories. I read Bastiat back when I was a libertarian.
    "Those who can make you believe absurdities, can make you commit atrocities." --Voltaire

 

 

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