The First Sighting of the Broken Window Fallacy on Hurricane Matthew | Foundation for Economic Education

The southeast Atlantic coast is plagued not just by Hurricane Matthew, but economic fallacies that compound the disaster as well. People are arguing that storm damage will stimulate the economy by requiring repairs, but they aren’t seeing the economic activity that would have created entirely new goods and services that is made impossible because the resources needed are tied up restoring old goods and services.

Source: The First Sighting of the Broken Window Fallacy on Hurricane Matthew | Foundation for Economic Education

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.