10 Most Common Economic Myths Debunked

Seek Understanding Beyond Your Immediate Perception


Myth 1:

The Luddites were a bunch of thugs who fought progress: they couldn’t understand that technological progress would benefit everybody, including them.

Output Growth and the British Industrial Revolution. A Restatement of the Crafts-Harley View. Economic History Review 45, 703-730

CH Feinstein 1998, Pessimism Perpetuated: Real Wages and the Standard of Living in Britain During and After the Industrial Revolution. Journal of Economic History  58, 625-658

H Voth, 2000, Time and Work in England 1750- 1830

RC Allen 2009, Engels’ Pause..Explorations in Economic History 46, 418-435

PH Lindert, 2000, When did Inequality rise in Britain and America? Journal of Income Distribution 9, 11-25

Clark, Huberman and Lindert, 1995, A British food  Puzzle 1770-1850, Economic History Review 48, 215-237

S Horrel , 1996, Home Demand and British Industrialisation, Journal of Economic History, 561-604

RH Steckel, 2008, Biological Measures of the Standard of Living, Journal of Economic Perspectives 22, 129-152

Flood, Wachter and Gregory, 1990, Height Health and History: Nutritional History in the UK 1750 -1980, Penguin, Chapter 10.

Berg, 1976, The Machinery Question, PhD diss, Oxford University

J Horn, 2008, The Path Not Taken, French Industrialisation in the Age of Revolution, Chapter 4

C.B. Frey, 2019, The Technology Trap, passim

F.Engels, 1845, The Condition of the Working Class in England, passimK Sale, 1996, Rebels Against The Future: The Luddites And Their War On The Industrial Revolution: Lessons For The Computer Age, passim

G Mueller, 2021, Breaking Things at Work: The Luddites Are Right About Why You Hate Your Job, passim


Myth 2:

A government should handle its finances as if it were a regular household, current levels of government debt are unsustainable and unprecedented.


Myth 3:

High taxes, particularly on rich people and corporations damage economic growth


Myth 4:

The State Never Backs Winners and Only the Private Sector Innovates Successfully,Marcia%20Angell%20had%20a%20front%2Drow%20seat%20on%20the%20appalling,control%20over%20their%20own%20fortunes.,state%20makes%20such%20subsidies%20public.



Myth 5:

Manufacturing Doesn’t Matter, our future is the “knowledge” economy.


Myth 6:

The UK’s financial sector is good for the economy and holds it all together, without it we would be lost.

Paul M. Sweezy, More (or Less) on Globalization,” Monthly Review 49, no. 4 (September 1997), 3–4.


Myth 7:

The 1970s were a disastrous time economically. When people warn about a return to the ‘dark days of the 1970s’ we should listen.

Myth 8:

Free trade benefits everybody and should be expanded

Key factors behind productivity trends in euro area countries; prepared by Paloma Lopez-Garcia and Bela Szörfi; published as part of the ECB Economic Bulletin, Issue 7/2021.

Myth 9:

Capitalism has lifted billions of people out of poverty.


Myth 10:

The Cost of Living Crisis is caused by excessive wage demands.,compared%20with%20Quarter%201%202021.,food%20insecurity%20in%20same%20month.,worth%20of%20shares%20in%202022.;-pound-falls-on-fed-outlook.aspx,report%20by%20Oxfam%20has%20revealed.


Concluding Remarks…