Murray Rothbard: 10 myths of modern macroeconomics

http://www.lewrockwell.com/rothbard/rothbard150.html

A little dry for Sunday morning, but important information.

In the article, Mr. Rothbard debunks the following falsehoods:

Quote:

*Deficits are the cause of inflation or deficits have nothing to do with inflation.
*Deficits do not have a crowding-out effect on private investment.
*Tax increases are a cure for deficits.
*Every time the Fed tightens the money supply, interest rates rise (or fall); every time the Fed expands the money supply, interest rates rise (or fall).
*Economists, using charts or high-speed computer models, can accurately forecast the future.
*There is a tradeoff between unemployment and inflation.
*Deflation – falling prices – is unthinkable, and would cause a catastrophic depression.
*The best tax is a "flat" income tax, proportionate to income across the board, with no exemptions or deductions.
*An income tax cut helps everyone; not only the taxpayer but also the government will benefit, since tax revenues will rise when the rate is cut.
*Imports from countries where labor is cheap cause unemployment in the United States.