Skip to comments.Paul Krugman's Nobel Makes Everyone Else Dumber
Posted on 12/17/2009 8:44:47 AM PST by cpurick
The classic textbook example of the fallacy is a stadium full of seated people. When one person stands up, he gets a better view -- which he acquires at the expense of the people behind him. But if everyone stands up, then nobody's view is really improved. The fallacy is commonly committed when you conclude, after seeing that one person can live better at someone else's expense, that everyone can therefore live better at everyone else's expense. If a scheme relies on shifting costs to somebody else, then it will only work as long as someone exists to absorb the costs.
The fallacy says that just because something works in a small sample does not prove that it will work for everyone. What it does not say is that something which works for a small sample cannot work for everyone. Krugman is using the fallacy of composition to argue that just because one person can stay alive by breathing, we should not conclude that everyone can stay alive by breathing. Or, to put it in familiar terms, Krugman is arguing that the stadium can't work if everybody is sitting down.
(Excerpt) Read more at whoisjohngalt.com ...
For Krugman to suggest that lowering the minimum wage would cause all wages to drop as well makes as much sense as stating that a drop in the price of peanut butter will cause a commensurate drop in the prices of caviar and diamonds.
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