User:Vtaylor/Financial stories/Financial reality basics, common misinformation

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Financial reality basics, common misinformation

  • Cycle of deflation [1]
  • The Broken Window Fallacy - economic benefits of the damage, in that spending on repairs is considered an economic stimulus. This is, of course, nonsense – the destruction creates great economic loss for society as a whole, although of course the repair industry benefits. This chestnut continues to reappear time after time, despite its continued rebuttal. The most famous essay on this subject is by Frederic Bastiat, dating from 1850. That Which is Seen, and That Which is Not Seen [2]