The Lexicalist Hypothesis, which says that the component of grammar that produces words is distinct and strictly separate from the component that produces phrases, is both wrong and superfluous. It is wrong because there are numerous instances where phrasal syntax feeds word formation, and where phrasal syntax can access sub-word parts. It is superfluous because all the facts that are supposed to be accounted for by the Lexicalist Hypothesis follow from any adequate theory of phrasal syntax. The model of grammar that we are led to is then the most parsimonious one: there is only one combinatorial component of grammar that builds both words and phrases.