I found this article from Thomas Sowell pretty interesting. It was popular on del.icio.us today, even though it was written in 2004. It talks about one misconception I didn’t even think of (the difference between wage rates and labor costs) and one I was already aware of (tax rates and tax revenues).
One of the apparently invincible fallacies of our times is the belief that President Ronald Reagan’s tax cuts caused the federal budget deficits of the 1980s. In reality, the federal government collected more tax revenue in every year of the Reagan administration than had ever been collected in any year of any previous administration.
