The Broken-Window Fallacy

Discussion in 'Political Opinions & Beliefs' started by camp_steveo, Jun 2, 2020.

  1. camp_steveo

    camp_steveo Well-Known Member

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    This is a good time to revisit an old debate applied to the economics of what we are witnessing today.

    Keynesians believe that because WWII ended the Great Depression destructive events like the riots must be a net positive to our economy.

    However, the Austrian school disagrees.

    "...for those economists who reject such a notion and instead think that markets can use resources efficiently when they are left alone, there is no upside at all to destructive events. Even though we can imagine situations in which these events confer benefits to particular groups, on net society is always made poorer, because the necessity of applying more labor power — just to return to the status quo in terms of tangible wealth — is a cost of the episode, not a benefit. Other things equal, we are better off when people have to work less to achieve a given level of wealth or flow of consumption."

    The Broken-Window Fallacy
    https://mises.org/library/broken-window-fallacy

    What do you think?
     
    Last edited: Jun 2, 2020
  2. 3link

    3link Well-Known Member Past Donor

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    Oh yes. Build that strawman. Build it so weak that it even your terrible ideas will seem good in comparison.
     
  3. Facts-602

    Facts-602 Banned

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    WW2 ending the Great Depression is much a myth as the New Deal being successful.
     

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