'Five Zombie Economic Ideas That Refuse to Die'

[CrusaderFrank]

I will add Myth #6: Cuts in personal income taxes pay for themselves.

Of course, no economist worth his or her salt believes this - notice that the article deals with debates amongst economists. However, a wide swath of a certain part of the political spectrum continues to hold this belief as if it were a religion. Those people don't know the difference between a stove and a stochastic. But it is a widespread myth nonetheless. And all tribes need their myths.

LOL.

Yeah, right.

WrongWay Krugman, off in the trillion column but wins a Noble Prize in Economics knows best.

 

[iamwhatiseem]

You can talk about economic models all day long, but until you get past the fact that the single largest problem in this country is that at least 95% of all consumers rarely consider value beyond the price tag. Nor do they pause to consider the consequences of their buying choices beyond the immediate effect on their wallet.

Not true at all...There is always a segment of the population that will pay more for items of perceived higher value (brand name, added features, etcetera).

Yes, however that segment is a tiny minority. The nations largest retailer, Walmart, is larger than it's top 10 competitors...combined. And who are those competitors? - Mini-Walmarts.
We are a nation of people who buy with price as the top 9 out of 10 reasons for buying. If this wasn't true - the above wouldn't be true.

Target seems to be doing awfully well, working under the model that they deliver better goods for the price....I do know that their clothing is better quality for comparable prices.

And as someone with a 4E width foot, don't even get me started on the crappy selection of shoes at either retailer.

Better goods? Pheh...
Walmart: Really cheap Chinese-made plastic laundry basket.
Target: Really cheap Chinese-made plastic laundry basket with bamboo handles.