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Lift your lamp beside the golden door, Break not the golden rule, avoid well the golden calf, know; not all that glitters is gold, and laissez faire et laissez passer [let do and let pass] but as a shining sentinel, hesitate not to ring the bell, defend the gates, and man the wall

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Wednesday, September 22, 2010

Zero-Sum Fallacy

Zero-Sum Game Fallacy...


Def. Zero Sum Game: A situation where anyone's gain is balanced by another's loss

Syn.  Constant Sum: where the benefits and losses to all sum to the same value

Cutting a Pie, is Zero/Constant-Sum, because taking a larger piece reduces the amount of pie available for others.

In Economics, Goods and Services can be created, destroyed or poorly allocated thusly creating net gain or loss.

In Capitalism IE the Free Market, "no exchange takes place unless both parties benefit" -Milton Friedman, this in and of itself would not necessarily avoid adverse affects to third parties but "[He, the proverbial merchant, is] led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. " -Adam Smith

Non-Zero-Sum: A situation where the gains and losses are less than or more than Zero

http://en.wikipedia.org/wiki/Zero-sum
 
http://en.wikipedia.org/wiki/Lump_of_labour_fallacy

List of Links to research for the writing of this blog... from best to worst [based on quick skimming], and then Wikipedia 

http://www.promethea.org/Misc_Compositions/PrometheanCapitalism/Zero-Sum.html

http://www.coyoteblog.com/coyote_blog/2007/04/wealth_creation.html

http://dissention.wordpress.com/2010/09/17/the-fallacy-of-resource-limitations/

http://www.economist.com/research/economics/alphabetic.cfm?letter=Z

http://www.thefreemanonline.org/columns/7-fallacies-of-economics/#

http://cafehayek.com/2006/09/zero_sum_econom.html

http://everydayecon.wordpress.com/2006/10/11/economics-is-not-a-zero-sum-game/

http://mjperry.blogspot.com/2008/12/just-say-no-to-keynesian-leaky-bucket.html

http://chrisyeh.blogspot.com/2009/04/zero-sum-fallacy-of-socialism.html

http://voices.washingtonpost.com/ezra-klein/2010/06/the_global_economy_isnt_zero-s.html

http://www.forbes.com/global/2007/0723/016.html

http://members.forbes.com/global/2007/0723/016.html

http://krusekronicle.typepad.com/kruse_kronicle/2007/11/economic-fall-6.html

http://books.google.com/books?id=oRgQ2goeFzwC&lpg=PA443&ots=4pcNTfhdYa&dq=bucket%20of%20Water%20economics&pg=PA443#v=onepage&q&f=false

http://www.kellysite.net/Zerosum.html



http://managerialecon.blogspot.com/2010/09/zero-sum-fallacy-in-green-technologies.html

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