The Biggest Myth in all of Economics

nitro

nitro

"Greeks Work Hard, So Why Is There a Debt Crisis?"

http://www.cnbc.com/id/44944435

While hard work is a predictor of success, it is nowhere near the most important factor. If it were, 90% of all Mexicans would be billionaires. The most important factor is the ability to create crap en-mass that people want, and then through hard work, milk it for all you can. Look at Germany with BMWs, or Japan with Toyota etc.

Some countries have natural resources, so they mobilize their work force to extract it, and then they become rich and think they are clever. A modern example is Brazil or Australia. An intermediate example is Saudi Arabia.
 
the biggest myth is that finance or money solve problems and are foundation to growth.

false. it is technology which enables prosperity, expansion, better quality of life.
another myth: government spending or income redistribution can make the economy better.

false. the less state intervention, the higher growth.
 
It appears this thread is now a list of strawman arguments.

I don't think anyone... finance or otherwise, has ever claimed finance is the *foundation* of growth. It's a necessary condition for growth - perhaps, but foundation? Find me a single reputable person in the finance industry who has ever said that.

Quote from DT-waw:

the biggest myth is that finance or money solve problems and are foundation to growth.

false. it is technology which enables prosperity, expansion, better quality of life.
More...
 
Tax cuts do pay for themselves IF you are to the right of the Laffer maximum.

Productivity underpins GDP and living standards, not just 'hard work'. Technology is a productivity enhancer. I think Greece has a macro corruption problme more than anything else. One painful lesson from neo-liberal econ was that rule of law is one of the requirements for good economics.
 
It appears this thread is now a list of strawman arguments.

I don't think anyone... finance or otherwise, has ever claimed finance is the *foundation* of growth. It's a necessary condition for growth - perhaps, but foundation? Find me a single reputable person in the finance industry who has ever said that.
More...


I think what he meant to say is fiscal and monetary policy. I think good policy is necessary, we don't have good policy right now.
 
"Second, not only are fewer Greeks working, those who do are far less productive"

You know what the difference is between an employed Greek and an unemployed Greek?

An employed Greek sleeps during work hours, an unemployed Greek sleeps all day.
 
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