What's everyone's opinion on Hazlett's broken-window fallacy of economics?

Discussion in 'Economy' started by Liberty, Feb 28, 2011.

  1. Liberty
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    Liberty Silver Member

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    Personally, I think it's a shame that the populace only considers the Glazier's business and believe that destruction does not = growth. If you don't know what the broken-window fallacy is, then educate yourself before opining. thanks.


    side-note: Hazlitt expanded on the idea from Bastiat, but is in Hazlitt's "economics in one lesson" which is a classic.
     
    Last edited: Feb 28, 2011
  2. Oddball
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    Hazlitt is exactly right.

    The #1 reason I refuse to give that quack Paul Krugman the time of day is because he invoked that thoroughly debunked brain dead fallacy after 9/11™.
     
  3. xsited1
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    xsited1 Agent P

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    Hazlett's "Economics in one Lesson" should be required reading in school, but we all know that'll never happen. I still have the book that my dad gave to me when I was 16.
     
  4. Norman
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    Norman Gold Member

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    Indeed it certainly is a very good book.

    And you can't fix an economy by destroying stuff, creating stuff IS the economy (though you CAN transfer wealth this way). So yeah my opinion is: it is an idiotic myth, and also krugman is a political writer and not a good economist IMO.
     
  5. skeptic
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    skeptic BANNED

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    It is Hazlitt. And he was correct. The assumption that merely because destruction generates econ activity it generates prosperity was a fallacy.

    Which is why war is bad for the economy as is defense spending and the whole military/industrial/intelligence complex thingee.

    Milton Friedman said as much here:


     
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  6. JBeukema
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    JBeukema BANNED

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    Evey time I hear someone say war stimulates the economy, I go to their home at night and throw a brick through their window in the name of prosperity.
     
  7. Truthmatters
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    Truthmatters BANNED

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    When you have an economic plan based on a finite commodity then your economy is doomed to fail.

    Economy based on war will fail because once you have killed all the people you economy is bust.

    Now how about all us adults build a siustanable economy that actually makes the lives of the people who have to live within the system better?


    To do this you have to control the weasels who would perfer a quick profit based on harm to anyone who needs to be harmed for their bank accounts sake.


    This is one of the big reasons Im a democrat.
     
  8. Oddball
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    Oddball BANNED Supporting Member

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    What does that pile of brain droppings have to do with the topic in the OP?
     
  9. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    When you have an economic plan that requires people to act contrary to their self interest and assumes magical unicorn levels of economic growth, that taxes don't affect behavior, and debt doesn't matter, then your economy is doomed to fail.

    That's why I don't support Obamanomics.
     
  10. Truthmatters
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    republican voters vote against their self interests all the time
     

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