"If a tax cut is good for me,it must be good for the whole economy." This statement is an example of the pitfall called the fallacy of composition.

Question

Quizplus · Accepted Answer

The fallacy of composition occurs when one assumes that what is true for a part must be true for the whole. In this statement, the assumption is made that if a tax cut is good for one individual, then it must be good for the entire economy, which is not necessarily true. The effects of tax cuts on the economy are complex and multifaceted, and their impact on different individuals and groups can vary significantly. Therefore, this statement is an example of the fallacy of composition.

"If a Tax Cut Is Good for Me,it Must Be