The Broken Window Fallacy

posted Jun 25, 2002

If someone throws a stone into a shop window, the owner needs to repair it. This puts people to work and increases total output. Since this creates jobs, would we be better off breaking lots of windows and repairing them?... This is the "broken window" fallacy...

No implied endorsement of the article; the last couple of paragraphs in particular may or may not be overstated. But interesting.

 

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