Common Flaws & Fallacies
Found in Economic Thought


A collection of brief comments about common laws and fallacies in economic thought.

For a number of years, just out of curiosity, I kept a list of the errors that I encountered in comments people made about matters relating to economics. From a few of the items on that list I drafted the following document, which I have now posted here on the The Free Market Center.

I plan to edit these comments, and possibly dedicate separate pages to them, but in the meantime, I have posted them here for your information.


Averages & Aggregates

Fallacies of averages and aggregates generally occur when people average or aggregate non-homogeneous units.

Value & Pricing

I think that most citizens misunderstand the concepts of value and price.

Systems Thinking

Many people get all confused about the causal connections between variables in economic systems.

Understanding Freedom

Politicians and economist make careers out of advocating actions that negate liberty and freedom.

Economic Stimulus

Many suggest that getting people to spend more money on consumer items will stimulate economic growth.