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Thursday, December 9, 2010
Short video explanation of Bastiat's "Broken Window Fallacy"---So simple yet so powerful...
I thought this was pretty interesting. I know that we have already learned about this, but it has been a while. I forgot about how interesting this topic was, about the seen and the unseen effects. Before learning about this theory, I would have only taken into consideration the "seen effects"- the "hooligan" breaking a window, and the window would need to be replaced. I would have seen it as the baker having to use his money on a broken window...however, after watching the video, it reminded me how this actually stimulates the economy, in that other businesses are being helped, such as the person who will repair the window. More work is needed to be done in those areas, more jobs are created, etc.
I thought this was pretty interesting. I know that we have already learned about this, but it has been a while. I forgot about how interesting this topic was, about the seen and the unseen effects. Before learning about this theory, I would have only taken into consideration the "seen effects"- the "hooligan" breaking a window, and the window would need to be replaced. I would have seen it as the baker having to use his money on a broken window...however, after watching the video, it reminded me how this actually stimulates the economy, in that other businesses are being helped, such as the person who will repair the window. More work is needed to be done in those areas, more jobs are created, etc.
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