The Broken Window Fallacy and the Corresponding Fallacy of Beneficial Government Spending – THINKING OUTSIDE THE BOX

The Broken Window Fallacy and the Corresponding Fallacy of Beneficial Government Spending – THINKING OUTSIDE THE BOX

By: Dr. Charles Ormsby – October 2013 A student recently stopped by my office and opined that the destruction caused by war has positive economic consequences because of the demand generated to rectify the resulting damages. He claimed that post World War II Europe proved his point. My student’s misguided belief is an example of […]