The broken window fallacy as it relates to Japan

Discussion in 'Off Topic [BG]' started by bassrique, Mar 21, 2011.

  1. For those not familiar with the broken window fallacy, here's an explanation.

    In a nutshell, the idea is that the destruction of a store's window may help the window maker, but the shop keeper in the end has replaced a window he already had and did not better himself by using that money elsewhere.

    In this month's New Yorker, a financial writer makes the case that there are times when broken windows can be good for an economy.

    The whole article.