Myths You Probably Believe

"It ain't what people know that causes trouble...it's what they know that ain't so."

It is an interesting phenomenon to me how people can hold so tightly, fiercely even, to beliefs for which they have no basis for belief to which they can point, other than they have just always believed them, or it's what they have been told, or in many cases, they just want to believe them.  Wanting something to be true, however, does not make it true.  Being told they are true also does not make them true...and when it comes to truth, unfortunately, there is no safety in numbers.  Just because "everybody knows" something to be true, also does not automatically make it so.  It has been proven over and over that "the masses" can easily be fooled.

Belief in some myths are harmless and even a little bit fun.  Believing in Bigfoot or a nocturnal, molar-collecting sprite is harmless.  But particularly disturbing to me are the myths people cling to about government...many of which I have believed myself in the past.  These myths are troubling because they are created and perpetuated by the very government system that are the topics of the myths.  The very people who wish to wield power and control over our lives have, through government controlled schools, a sycophantic press, and bold face lies spread falsehoods about their own effectiveness, good intentions and indispensability, all in an effort to create a compliant citizenry who will never question their power or actions.

My path to recovering the truth, I am a recovering Neo-Con, began with simply being open to question my own beliefs and through reading history.  I began to see that much of what I thought I knew was, in fact, distortions at best and in many cases, complete fabrications.  I saw that it is not a matter of party, Republican or Democrat, since they were just two sides of the same coin.  Both parties, on the whole, are populated by statist, central-planning power mongers.  It was not even a matter of Right and Left, for many things I once believed as a rightist neo-con, I now reject.  It is, rather, a matter of truth and fact vs. myth and lies.  It is a struggle between liberty and tyranny.

In the video below from a 1977 lecture, Milton Friedman lays out five widely believed, and never-the-less false myths about government.  Are you open to truth?  Can you get past your own closely held myths and truly consider the logic and history of his arguments?  Friedman says early in the video that "Somebody once wrote...a myth is like an air mattress.  There's nothing in it, but it's wonderfully comfortable, and deflation causes an uncomfortable jolt."  Get ready for a needed jolt concerning these five Myths That Conceal Reality:

1. The Robber Baron Myth
2. The Great Depression Myth
3. The Demand for Government Service Myth 
4. The Free Lunch Myth
5. The Robin Hood Myth.

The More Things Change...

It's as true today as it was then...people don't know history...they are clueless about how the economy works...and don't know or care about the consequences of the way they vote.  People STILL believe that the Great Depression was a failure of the Free Market.  Why?  Because those really at fault, government, told them so.  But Friedman tells a different story:

"So the Great Depression was not produced by a failure of business.  On the contrary, it was produced by a failure of government...and a failure of government in an area in which responsibility had been assigned to government since the founding of this country...We have learned from that failure.  The Federal Reserve will not fail in the same way again.  This time it will fail in a different way.  This time it has been failing, not by producing a Great Depression, but by producing an inflation.  Because just as you will hear the story that it was business that was responsible for the depression, so you will today  hear the story that it is labor and management that are responsible for inflation.  It is the same kind of a myth."

The inflation he is speaking of here is in the 1970s when interest rates were in the double-digits and much of the American manufacturing base, such as steel, collapsed.  President Gerald Ford ran on a W.I.N. platform, which stood for Whip Inflation Now.  It was a time of what was being called "hyper-inflation," and it was devastating to our economy.

Today, we are on the verge of another devastation to our economy.  The Federal Reserve is printing more and more money.  This causes the value of the dollar to drop, and therefore, prices to raise...this is inflation.  But who is to blame.  Once again, Friedman tells it like it is:

"Inflation is made in one place, and one place only...Washington D.C.  And in Washington D.C., the chief source...immediate source of inflation...is a Greek temple on Constitution Avenue, which houses the Federal Reserve Board.  An accomplice, and a major accomplice of course, sits in the halls of Congress in Washington.  They are a major accomplice because you tell 'em to be.  The American people have been telling Congress for many years, 'Spend more money on us, please.'  But they've been telling us, 'Don't raise our taxes.'  Congress has been listening.  It's been spending more money on you, but, on the other hand, its been very unwilling to raise taxes.  As a result, its imposed inflation as a tax. That's one tax you don't have to vote for...but you have to pay."

I fear, though, that things are building to be even worse.  With the debt as high as it is, many in government today seem to have no problem both causing inflation and increasing taxes.

Watch the whole video.  It's an interesting history lesson, one that is very relevant for today.