Media Research Center

Free Market Project

2/22/2006 3:20:54 AM

Updated 01/25/06

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The Mediaís Top 10 Economic Myths of 2005


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     It was difficult to wade through the economic news of 2005. Gloom and doom overwhelmed any rational examination of the U.S. economy. Journalists were so obsessed with their negative outlooks that they set aside reason and reported one fantasy after another. The Free Market Project compiled the 10 worst:

10. America should follow French fashion in business
¬†¬†¬†¬† Media Myth: Franceís short work week, benefits and loads of vacation time made it a workersí paradise.

9. We must raise taxes to cope with ballooning deficits
     Media Myth: Spending for hurricane recovery and Iraq is driving the U.S. deficit out of control. The only answer is to raise taxes to pay for it all.

8. Global warming is causing stronger hurricanes
     Media Myth: Thanks to the U.S. rejection of the Kyoto treaty, global warming is on the rise and warmer oceans are spawning deadlier hurricanes than ever.

7. America is cheap with its foreign aid
¬†¬†¬†¬† Media Myth: At least our good-hearted celebrities understand that compared to other nations, America doesnít give much to help the worldís poor.

6. Hurricane Katrina will send the economy into a tailspin
¬†¬†¬†¬† Media Myth: With homes and businesses destroyed and the nationís oil supply hit, the United States will surely hemorrhage jobs and head toward a huge downturn in Katrinaís wake.

5. The housing bubble is about to burst
¬†¬†¬†¬† Media Myth: The housing market, white-hot for so long, is about to go bust and take you and your homeís value with it.

4. Americans are dying to be fat
¬†¬†¬†¬† Media Myth: America is suffering from an obesity epidemic, so weíve got to keep everyone away from foods and beverages with calories. This has become the nationís No. 1 health problem and weíre dying at the rate of 400,000 a year.

3. Consumers are choosing between food and fuel
¬†¬†¬†¬† Media Myth: Rising energy prices mean there wonít be much in little Timmyís stocking this Christmas. Mom and dad canít heat their home and buy food, so other business sectors are going to get Scrooged.

2. Big, profitable companies are up to no good
¬†¬†¬†¬† Media Myth: Big money-makers like the oil and drug industries should be sharing the wealth. Oil companies were profiting off othersí misfortunes Ė laughing all the way to the bank while you got squeezed at the pump. And Wal-Martís business practices were just as bad.

1. The U.S. economy is hopeless
¬†¬†¬†¬† Media Myth: There are plenty of reasons to doubt the economy. Gas prices; housing bubble; auto workers losing jobsÖ the evidence is everywhere.

Donít believe the myths! To get the truth, go to


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