Wednesday, August 11, 2010

Broken Windows - The Video

Here's the final word on Bastiat's "Broken Windows" fallacy.
It doesn't matter if it is Cash For Clunkers, the new Cowboys Stadium, or Obama's Porkulus plan - we're all better off when you can spend your money the way you want to spend it.

1 comment:

Nick Rowe said...

I see examples of the Broken Window Fallacy all the time on Mark Perry's libertarian blog. He's celebrating increased home sales from foreclosures and increasing production from inventory replacement after LIFO liquidation. These are a necessary and expected consequence, but not cause for celebration and not an indication of a healthy economy.

Worse, he highlights seemingly good economic news resulting directly from the distortionary effects of government spending.

Fallacies are easy to miss when you're not looking for them.