(Photo credit: Wikipedia)
DESTRUCTION DOESN’T CREATE WEALTH.
It’s been a week since the tornado went through Moore Oklahoma and I have yet to see an article or comment by an “economist” saying that the destruction by the tornado will help the economy and create jobs. This is what was said after Hurricane Sandy hit New Jersey and New York, read here and here. We showed the errors of this analysis in this post titled, Hurricane Sandy and the Broken Window Fallacy. But like all shallow thinking, this fallacy will never be put to rest once and for all, so let’s be ready to shoot it down when it rears its head again.
Let’s look at the similarities and the differences between the destructive power of this tornado, and the destructive power of the Fed and the Government. It’s a version of the broken window fallacy. (more…)
AUSTRIAN ECONOMICS ADDICT 