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FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION: Abbreviated FSLIC, this was once the federal entity responsible for insuring the deposits at savings and loan associations (S&Ls). It performed the same function for S&Ls that the Federal Deposit Insurance Corporation (FDIC) performed for traditional banks. However, when a significant number S&Ls experienced problems in the 1980s and effectively bankrupting the FSLIC, the FDIC assumed the deposit insurance role for any remaining S&Ls, too.
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                           FALLACY OF DIVISION: The logical fallacy of arguing that what is true for the whole is also true for the parts. In the study of economics, this takes the form of assuming that what works for the aggregate, or macroeconomy, also works for parts of the economy, such as households or businesses. The contrasting fallacy is the fallacy of composition. The fallacy of division, together with the fallacy of composition, highlights the difference between macroeconomics and microeconomics. Macroeconomics operates according one set of laws and principles, while microeconomics operates according to another set. Assuming what works for the aggregate economy also works for parts of the economy leads to the fallacy of division.For example, during economic bad times (recession), the appropriate action for the Federal government (as "caretaker" of the aggregate economy) is to increase spending and reduce taxes. A recessionary period is not the time for government to act prudently, to save, to set aside extra funds for a rainy day. However, should a family or business try to operate in a similar manner, then they are bound to encounter problems, and to commit the fallacy of division. Saving less and spending more during a recession can be disastrous at the microeconomic family level. The aggregate economy is a complex system comprised of smaller microeconomic components. An analogy is the human body. Individuals and firms make up the aggregate economy like cells and molecules make up the human body. Rules that apply to entire body do not apply to the cells. Rules that apply to entire macroeconomy do not apply to the firms, households, markets, and industries. What is true at the macroeconomic level is not necessarily true at the microeconomic level. What is true for the whole is not necessarily true for the parts.
Recommended Citation:FALLACY OF DIVISION, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2019. [Accessed: July 21, 2019].
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Today, you are likely to spend a great deal of time browsing through a long list of dot com websites hoping to buy either a T-shirt commemorating Thor Heyerdahl's Pacific crossing aboard the Kon-Tiki or a wall poster commemorating the 2000 Olympics. Be on the lookout for a thesaurus filled with typos.
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Rosemary, long associated with remembrance, was worn as wreaths by students in ancient Greece during exams.
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"When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left, and could say, „I used everything you gave me.¾" -- Erma Bombeck, writer
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UNCTAD
United Nations Conference on Trade and Development
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