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In times of disaster and destruction, a common narrative often emerges that rebuilding efforts will lead to economic growth. The idea that repairing damage and replacing destroyed goods creates jobs that spur consumption and stimulate economic activity is tempting. However, as French economist Frédéric Bastiat explained in his famous “Broken Window Theory,” this reasoning is fundamentally flawed. Rather than generating net economic benefits, destruction diverts resources and wealth that could have been used for more productive purposes, ultimately stifling real economic growth.
So much for broken windows, disasters, and wars being good for the economy. Only idiots and psychopaths think in these terms. So, the looting defense companies are making money by shooting off armaments? https://www.tiktok.com/@financian_/video/7371796080821832993?lang=en No, they are just looting the future, now.
The seen vs the unseen
It's almost impossible to get people to think in terms of opportunity cost.
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You’re right!!! I just posted one about “Free money” or “guaranteed loans” that points out the foolishness involved in not looking at the opportunity costs and where they are distributed. It is funny, the lost opportunity costs the government generates always seem to be laid on the poorer people the policies are meant to help.
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the poorer people the policies are meant to help
Correction: the poorer people we're told the policies are meant to help
The policies do help who they're intended to help.
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