I’ve always liked Henry Hazlitt. He always spoke of how economics was riddled with fallacies. I couldn’t agree more.
The most pernicous fallacy is the attempt to justify wealth redistribution through a progressive tax code. As far as I know, only Fredrick Hayek and Ludwig von Mises took this most intractable issue head on.
The promimence of equality in economic thought is a patische. It only exists with tenured radicals or politicans.
Its their deep personal admiration for arbitrary authority and centralization.
Justifications for a progressive income tax is groundless! IT INVOLVES AN INTERPERSONAL COMPARISON OF UTILITIES WHICH IS BEYOND THE SCOPE OF ECONOMICS! This is called social engineering! Its also called Socialism!
The fallacy is to inclue into disciplines categories that don’t belong there: like quazi-marxist conceptions of justice hinged to taxation. Unless we have forgotten, classless and egalitarian is the proper criteria for any capitalist society. What we are witnessing is the corruption of a discipline influenced from foreign ideology; respecting market processes’ is indegenous to the methodology of this or any discipline.
Economics has nothing to say about the larger features of a good society. It operates from within the confines of emperical realities.
We have to remind the smart people that ideas have consequences: IMPRIMUS!