Friday, August 03, 2007

Five lies... economist told me, is the title of this piece. (Hat Tip - Manoj). And these are the five lies...

* High productivity and low unemployment make us all better off
* It’s hard to grow without good banks and private property
* Capital must always be let free to flow
* The euro will never work
* Japan—no wait, China—is going to take over the world economy

Interesting reading, though the piece does not convince you entirely that they are lies. I think points 1 and 3 hold (as in, they are not lies). We have seen it in India. Point 2 may be valid, but only in an isolationist sense - when it is not connected to anything else, so there. Point 4, I dont know much about. Point 5, to me, makes sense.

Marginal revolution confirms it is junk, almost...

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