Teaching the Fallacy of Composition: The Federal Budget Deficit - L.
Randall Wray is a Professor of Economics at the University of
Missouri-Kansas City,Teaching the Fallacy of Composition: The Federal
Budget Deficit
Policy Note No. 06/01
Professor L. Randall Wray-University of Kansas City
http://www.cfeps.org/pubs/pn/pn0601.htm

New Page 1
www.cfeps.org
One of the most important concepts to be taught in economics is the
notion of the fallacy of composition: what might be true for
individuals is probably not true for society as a whole. The most
common example is the paradox of thrift: while an individual can save
more by reducing spending (on consu...
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