By John Tamny of Forbes
The great economist Henry Hazlitt once observed that “Economics is haunted by more fallacies than any other study known to man.” Were Hazlitt alive today, he surely would have a field day addressing the numerous economic fallacies offered up by our very own Federal Reserve Chairman, Ben Bernanke.
From his frequent assertions that economic growth is the cause of inflation, to his support of spending “stimulus” as though wealth redistribution actually drives economic activity, to his belief that simple money creation enhances the economy, it’s fair to say that the world’s most powerful central banker buys into a quite a few of these fallacies. Historians will write volumes on former President George W. Bush’s biggest mistakes in office, and while the left and right will have plenty to work with, it’s likely that for some at least, Bush’s appointment of Bernanke will loom large.

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