Ten Great Economic Myths | Mises Wire + Book Recommendation

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If you are going to deal with something, you better know what you are doing or you might end up messing things up. But unfortunately most people deal with economy without properly understanding it. Th results are evident in our financial crashes and pandering to socialism. This one is an article on 10 common myths with a vibrant comment section discussing the content presented. Just take some time to go through both the article and comments.


Human Action: A Treatise on Economics


Reading some article on economic myths won't get you too far. That's why I'm recommending my #1 book related to Economics. It is the Magnum Opus of The Great Ludwig von Mises  It's the first book I recommend to anyone who wants to get into learning Economics. If you read and understand Human Action, everything else would be already as you'd have developed a solid foundation/strong roots of understanding. 


“Praxeology is a theoretical and systematic, not a historical, science. Its scope is human action as such, irrespective of all environmental, accidental, and individual circumstances of the concrete acts. Its cognition is purely formal and general without reference to the material content and the particular features of the actual case. It aims at knowledge valid for all instances in which the conditions exactly correspond to those implied in its assumptions and inferences. Its statements and propositions are not derived from experience. They are, like those of logic and mathematics, a priori. They are not subject to verification or falsification on the ground of experience and facts.” 


“Reason, intellect, and logic are historical phenomena. There is a history of logic as there is a history of technology. Nothing suggests that logic as we know it is the last and final stage of intellectual evolution. Human logic is a historical phase between prehuman nonlogic on the one hand and superhuman logic on the other hand. Reason and mind, the human beings’ most efficacious equipment in their struggle for survival, are embedded in the continuous flow of zoological events. They are neither eternal nor unchangeable. They are transitory.” 


Economy arise from Individual Actions. Therefor economics is a study on human action. It's not math.Economics is a Synthetic A Priori and absolutely not an Empirical Science. An individual is not some cog in a machine. A human being comes with free will and not with preset algorithms installed. Just because society turn humans into zombies doesn't mean humans are a bunch of zombies. 

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Add this myth: in credit economies, the decrease in demand does not lower prices.

You got a 54.95% upvote from @minnowvotes courtesy of @vimukthi!