Financial misinformation gets circulated around the Internet and repeated ad nauseam on cable news.
Here are the five biggest economic myths of 2011.
1. Rich people create jobs. This is a favorite line of certain politicians, but it’s not really true–unless you count the hiring of a few English butlers and undocumented gardeners. The people who create jobs are middle class consumers.
Investors and entrepreneurs do create small companies. But even with all the capital in the world, a small company will not succeed without customers to buy its products. The largest portion of customers, by far, is the middle class, which spends most of what it earns. In contrast, the super rich save a lot of their money and store it in banks and non-productive assets like art or real estate.