Lately I’ve been doing a lot of my favorite activity: sitting on my couch and watching documentaries on Netflix. One of the recent suggestions that came up was the documentary produced by former US Secretary of Labor under Bill Clinton, Robert Reich, called “Inequality for All.” In this film, Reich presents a compelling case that economic inequality has been the cause of two major economic crises in American history, the Great Depression of the early 1930s and the Great Recession which began in 2008 and which many in the US are still living through.
While Reich is speaking with the best of intentions, I believe his argument suffers from one of the most common logical fallacies: confusing cause and effect. This fallacy is especially pernicious because it systematically keeps us from asking important questions about how our economy is organized. Continue reading