Basic misconceptions about economics from a senator

Discussion in 'P1.T4. Valuation & Risk Models (30%)' started by Aleksander Hansen, Aug 14, 2012.

  1. Aleksander Hansen

    Aleksander Hansen Well-Known Member

    Discalimer: I am not a citizen of the US, so I do not vote for either party; this is just an objective observation and is not politically motivated.

    Sen. Dick Durbin (D-IL) frequently complains about Americas trade deficit.
    [even though the trade deficit, unlike the budget deficit, is virtually meaningless].


    Interestingly, Senator Durbin appeared on CNN's "Face the Nation" a few weeks ago. There he complained about the fact that, Presidential hopeful, Mitt Romney has a Swiss bank account.

    Note that the Senator sits on The Committees of: Appropriations; Foreign Relations; and Judiciary.

    Question:
    The Senator commits a major economic fallacy. What is the fallacy?

    Give answering a shot before looking at the answer. The P1 exam in May had a related question!

    Answer can be found here...

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