SOME ECONOMIC MYTHS DEBUNKED

The "exporting jobs" myth: "As U.S. trade deficits continue to pile up, and as the economy continues in its slow-growth patterns, a number of economic commentators have been accusing American corporations of causing the trouble by "exporting jobs." Now, given the bounty of economic myths that economists and media pundits seem to foist upon us, one should not be surprised at anything we read in the academic literature or popular press, but the newest set of fallacies that we are hearing is especially insidious."

"In the Austrian school's theory of the business cycle, the 'boom' (even though it sounds good) is the cause of the business cycle and all its attendant problems. The 'bust' (even though it sounds bad) is the recovery, where all the problems of the business cycle are put right. The Austrian view is shared by many economy and stock market professionals who dub any retreats from overdone conditions as 'corrections'."

Only the economic ignoramuses would be surprised: "Opponents of NAFTA warned of a 'giant sucking sound' of jobs and investment heading south if the agreement were enacted, but all the evidence points the other way. Since 1994, Arizona's exports to Mexico and Canada have doubled, including more than $1.5 billion in computer and software exports to Mexico in 2001 alone. Arizona's farm exports to Mexico have also soared."

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