Parable of the broken window - Revision history

Pestergaines: /* Links */ +res

2013-01-17T10:44:06Z

Links: +res

← Older revision		Revision as of 10:44, 17 January 2013
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	* [http://bastiat.org/en/twisatwins.html That Which is Seen, and That Which is Not Seen] (essay in English)		* [http://bastiat.org/en/twisatwins.html That Which is Seen, and That Which is Not Seen] (essay in English)
	* {{md\|5593\|The Broken-Window Fallacy\|[[Robert P. Murphy]]\|August 2011}}		* {{md\|5593\|The Broken-Window Fallacy\|[[Robert P. Murphy]]\|August 2011}}
			* [http://reshapingmisconceptions.blogspot.de/2010/02/friedman-refutes-himself.html Friedman refutes... himself], ''Reshaping Misconceptions'', February 2010

	* Other media		* Other media

Pestergaines: /* Contemporary Examples */ Ref adjusted.

2012-11-27T10:41:29Z

Contemporary Examples: Ref adjusted.

← Older revision		Revision as of 10:41, 27 November 2012
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	The Economist, "[[Cash for clunkers\|Cash For Clunkers]]" program:<ref name="Economist">"Clunky but effective: Why cash-for-clunkers schemes make sense right now," The Economist, accessed 2011-03-13, [http://www.economist.com/node/14162193?story_id=14162193 http://www.economist.com/node/14162193?story_id=14162193].</ref><blockquote>The boost in demand that the rebates have brought about is exactly the sort of stimulus that is urgently needed to escape what John Maynard Keynes called a “liquidity trap”. According to his theory, consumers may become so worried about the economy that they cling to as much liquid wealth as possible, cutting their spending sharply and thereby triggering precisely the slump they feared. Moreover, as stimulus policies go, cash-for-clunkers looks to be unusually effective.</blockquote>		The Economist, "[[Cash for clunkers\|Cash For Clunkers]]" program:<ref name="Economist">"Clunky but effective: Why cash-for-clunkers schemes make sense right now," The Economist, accessed 2011-03-13, [http://www.economist.com/node/14162193?story_id=14162193 http://www.economist.com/node/14162193?story_id=14162193].</ref><blockquote>The boost in demand that the rebates have brought about is exactly the sort of stimulus that is urgently needed to escape what John Maynard Keynes called a “liquidity trap”. According to his theory, consumers may become so worried about the economy that they cling to as much liquid wealth as possible, cutting their spending sharply and thereby triggering precisely the slump they feared. Moreover, as stimulus policies go, cash-for-clunkers looks to be unusually effective.</blockquote>

	Fred Bergsten, about the [[Wikipedia:2004 Indian Ocean earthquake and tsunami\|2004 Indian Ocean earthquake and tsunami]]: <blockquote>"Perverse as it seems, disasters of this type usually do have positive long-term effects. The reconstruction process itself requires a lot of new investment, some of it in this case financed by foreign assistance, but there will be new investment, that will create construction contracts, that will generate jobs, that will boost economic growth, in the short to medium run. Moreover, even for the longer run, the reconstruction may produce more efficient facilities and more extensive facilities ... when they put down new resort hotels, they'll be more more modern, they'll be more attractive, they'll probably bring in more people in the future. So again, though it seems perverse, the net effect of these things frequently is to boost economic activity, at least for the short to medium run, and to improve the underlying infrastructure and therefore the long-term prospects as well." He continues with examples like Germany and Japan after [[World War II]], and other wars and disasters.<ref name="Bergsten_Talk">[http://www.npr.org/player/v2/mediaPlayer.html?action=1&t=1&islist=false&id=4250603&m=4250604 ~~"The Economic Costs of Natural Disasters "~~], "Talk of the Nation", ''National Public Radio''. Broadcasted December 29, 2004. Referenced 2012-11-27.</ref></blockquote>		C. Fred Bergsten, about the [[Wikipedia:2004 Indian Ocean earthquake and tsunami\|2004 Indian Ocean earthquake and tsunami]]: <blockquote>"Perverse as it seems, disasters of this type usually do have positive long-term effects. The reconstruction process itself requires a lot of new investment, some of it in this case financed by foreign assistance, but there will be new investment, that will create construction contracts, that will generate jobs, that will boost economic growth, in the short to medium run. Moreover, even for the longer run, the reconstruction may produce more efficient facilities and more extensive facilities ... when they put down new resort hotels, they'll be more more modern, they'll be more attractive, they'll probably bring in more people in the future. So again, though it seems perverse, the net effect of these things frequently is to boost economic activity, at least for the short to medium run, and to improve the underlying infrastructure and therefore the long-term prospects as well." He continues with examples like Germany and Japan after [[World War II]], and other wars and disasters.<ref name="Bergsten_Talk">[http://www.npr.org/templates/story/story.php?storyId=4250603 "The Economic Costs of Natural Disasters "] (story, [http://www.npr.org/player/v2/mediaPlayer.html?action=1&t=1&islist=false&id=4250603&m=4250604 audio]), "Talk of the Nation", ''National Public Radio''. Broadcasted December 29, 2004. Referenced 2012-11-27.</ref></blockquote>

	Lawrence Summers, March 2011 Japan earthquake:<ref name="Summers">"Earthquake May Boost Economy Short Term: Summers," CNBC, accessed 2011-03-13, [http://www.cnbc.com/id/42002647 http://www.cnbc.com/id/42002647].</ref><blockquote>Friday's massive earthquake is yet another challenge to Japan's recovery but it may provide a jolt to the economy over the short term, Lawrence Summers, president emeritus of Harvard University and former director of the White House National Economic Council, told CNBC.		Lawrence Summers, March 2011 Japan earthquake:<ref name="Summers">"Earthquake May Boost Economy Short Term: Summers," CNBC, accessed 2011-03-13, [http://www.cnbc.com/id/42002647 http://www.cnbc.com/id/42002647].</ref><blockquote>Friday's massive earthquake is yet another challenge to Japan's recovery but it may provide a jolt to the economy over the short term, Lawrence Summers, president emeritus of Harvard University and former director of the White House National Economic Council, told CNBC.

Pestergaines: /* Contemporary Examples */ +example

2012-11-27T10:39:45Z

Contemporary Examples: +example

← Older revision		Revision as of 10:39, 27 November 2012
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	The Economist, "[[Cash for clunkers\|Cash For Clunkers]]" program:<ref name="Economist">"Clunky but effective: Why cash-for-clunkers schemes make sense right now," The Economist, accessed 2011-03-13, [http://www.economist.com/node/14162193?story_id=14162193 http://www.economist.com/node/14162193?story_id=14162193].</ref><blockquote>The boost in demand that the rebates have brought about is exactly the sort of stimulus that is urgently needed to escape what John Maynard Keynes called a “liquidity trap”. According to his theory, consumers may become so worried about the economy that they cling to as much liquid wealth as possible, cutting their spending sharply and thereby triggering precisely the slump they feared. Moreover, as stimulus policies go, cash-for-clunkers looks to be unusually effective.</blockquote>		The Economist, "[[Cash for clunkers\|Cash For Clunkers]]" program:<ref name="Economist">"Clunky but effective: Why cash-for-clunkers schemes make sense right now," The Economist, accessed 2011-03-13, [http://www.economist.com/node/14162193?story_id=14162193 http://www.economist.com/node/14162193?story_id=14162193].</ref><blockquote>The boost in demand that the rebates have brought about is exactly the sort of stimulus that is urgently needed to escape what John Maynard Keynes called a “liquidity trap”. According to his theory, consumers may become so worried about the economy that they cling to as much liquid wealth as possible, cutting their spending sharply and thereby triggering precisely the slump they feared. Moreover, as stimulus policies go, cash-for-clunkers looks to be unusually effective.</blockquote>

			Fred Bergsten, about the [[Wikipedia:2004 Indian Ocean earthquake and tsunami\|2004 Indian Ocean earthquake and tsunami]]: <blockquote>"Perverse as it seems, disasters of this type usually do have positive long-term effects. The reconstruction process itself requires a lot of new investment, some of it in this case financed by foreign assistance, but there will be new investment, that will create construction contracts, that will generate jobs, that will boost economic growth, in the short to medium run. Moreover, even for the longer run, the reconstruction may produce more efficient facilities and more extensive facilities ... when they put down new resort hotels, they'll be more more modern, they'll be more attractive, they'll probably bring in more people in the future. So again, though it seems perverse, the net effect of these things frequently is to boost economic activity, at least for the short to medium run, and to improve the underlying infrastructure and therefore the long-term prospects as well." He continues with examples like Germany and Japan after [[World War II]], and other wars and disasters.<ref name="Bergsten_Talk">[http://www.npr.org/player/v2/mediaPlayer.html?action=1&t=1&islist=false&id=4250603&m=4250604 "The Economic Costs of Natural Disasters "], "Talk of the Nation", ''National Public Radio''. Broadcasted December 29, 2004. Referenced 2012-11-27.</ref></blockquote>

	Lawrence Summers, March 2011 Japan earthquake:<ref name="Summers">"Earthquake May Boost Economy Short Term: Summers," CNBC, accessed 2011-03-13, [http://www.cnbc.com/id/42002647 http://www.cnbc.com/id/42002647].</ref><blockquote>Friday's massive earthquake is yet another challenge to Japan's recovery but it may provide a jolt to the economy over the short term, Lawrence Summers, president emeritus of Harvard University and former director of the White House National Economic Council, told CNBC.		Lawrence Summers, March 2011 Japan earthquake:<ref name="Summers">"Earthquake May Boost Economy Short Term: Summers," CNBC, accessed 2011-03-13, [http://www.cnbc.com/id/42002647 http://www.cnbc.com/id/42002647].</ref><blockquote>Friday's massive earthquake is yet another challenge to Japan's recovery but it may provide a jolt to the economy over the short term, Lawrence Summers, president emeritus of Harvard University and former director of the White House National Economic Council, told CNBC.

John James: added see also+store link

2012-09-06T03:00:57Z

added see also+store link

← Older revision		Revision as of 03:00, 6 September 2012
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	'''KRUGMAN''': No, there was a "Twilight Zone" episode like this in which scientists fake an alien threat in order to achieve world peace. Well, this time, we don't need it, we need it in order to get some fiscal stimulus.</blockquote>		'''KRUGMAN''': No, there was a "Twilight Zone" episode like this in which scientists fake an alien threat in order to achieve world peace. Well, this time, we don't need it, we need it in order to get some fiscal stimulus.</blockquote>

			==See also==
			* ''[[The Bastiat Collection]]''
			* "[[The Law]]"
			* ''[[Economic Sophisms]]''
			** "[[The candlemakers' petition]]"

	==References==		==References==
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	==Links==		==Links==
	{{wikisource\|That Which Is Seen, and That Which Is Not Seen}}		{{wikisource\|That Which Is Seen, and That Which Is Not Seen}}
	{{store\|http://mises.org/store/Bastiat-Collection-Pocket-Edition-P10458.aspx\|The Bastiat Collection (Pocket Edition)}}		{{store\|http://mises.org/store/Bastiat-Collection-Pocket-Edition-P10458.aspx\|The Bastiat Collection (Pocket Edition)\|http://mises.org/store/The-Law-P408.aspx\|The Law}}
	* [http://bastiat.org/fr/cqovecqonvp.html "Ce qu'on voit et ce qu'on ne voit pas"] (original essay, in ''French'')		* [http://bastiat.org/fr/cqovecqonvp.html "Ce qu'on voit et ce qu'on ne voit pas"] (original essay, in ''French'')
	* [http://bastiat.org/en/twisatwins.html That Which is Seen, and That Which is Not Seen] (essay in English)		* [http://bastiat.org/en/twisatwins.html That Which is Seen, and That Which is Not Seen] (essay in English)

John James: /* Links */ added, grouped

2012-09-06T02:51:34Z

Links: added, grouped

← Older revision		Revision as of 02:51, 6 September 2012
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	* [http://bastiat.org/fr/cqovecqonvp.html "Ce qu'on voit et ce qu'on ne voit pas"] (original essay, in ''French'')		* [http://bastiat.org/fr/cqovecqonvp.html "Ce qu'on voit et ce qu'on ne voit pas"] (original essay, in ''French'')
	* [http://bastiat.org/en/twisatwins.html That Which is Seen, and That Which is Not Seen] (essay in English)		* [http://bastiat.org/en/twisatwins.html That Which is Seen, and That Which is Not Seen] (essay in English)
	* [http://blog.mises.org/13436/the-broken-window-2/ "The Broken Window Fallacy" video] ([http://www.youtube.com/watch?v=QG4jhlPLVVs "no accents" version])
	* [http://www.youtube.com/watch?v=erJEaFpS9ls "The Broken Window Fallacy"] by [[Art Carden]] with [[LearnLiberty.org]]
	* {{md\|5593\|The Broken-Window Fallacy\|[[Robert P. Murphy]]\|August 2011}}		* {{md\|5593\|The Broken-Window Fallacy\|[[Robert P. Murphy]]\|August 2011}}

	~~{{DEFAULTSORT~~:~~Parable Of~~ The Broken Window}}		* Other media
			** [http://blog.mises.org/13436/the-broken-window-2/ "The Broken Window Fallacy" video] ([http://www.youtube.com/watch?v=QG4jhlPLVVs "no accents" version])
			** [http://www.youtube.com/watch?v=erJEaFpS9ls "The Broken Window Fallacy"] by [[Art Carden]] with [[LearnLiberty.org]]
			** [http://www.youtube.com/watch?v=UPmo2e-bAMQ "The Broken Window Fallacy"] by [[John Stossel]]
			** [http://www.youtube.com/watch?v=HNjAielBBG0 "The Green Jobs Fallacy"] by John Stossel


	[[Category:Economic concepts]]		[[Category:Economic concepts]]
	[[Category:Fallacies]]		[[Category:Fallacies]]

Pestergaines: +link to Cash for clunkers

2011-09-21T17:22:57Z

+link to Cash for clunkers

← Older revision		Revision as of 17:22, 21 September 2011
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	First, the driving force behind the economic slowdown has been a plunge in business investment. Now, all of a sudden, we need some new office buildings. As I've already indicated, the destruction isn't big compared with the economy, but rebuilding will generate at least some increase in business spending.</blockquote>		First, the driving force behind the economic slowdown has been a plunge in business investment. Now, all of a sudden, we need some new office buildings. As I've already indicated, the destruction isn't big compared with the economy, but rebuilding will generate at least some increase in business spending.</blockquote>

	The Economist, "Cash For Clunkers" program:<ref name="Economist">"Clunky but effective: Why cash-for-clunkers schemes make sense right now," The Economist, accessed 2011-03-13, [http://www.economist.com/node/14162193?story_id=14162193 http://www.economist.com/node/14162193?story_id=14162193].</ref><blockquote>The boost in demand that the rebates have brought about is exactly the sort of stimulus that is urgently needed to escape what John Maynard Keynes called a “liquidity trap”. According to his theory, consumers may become so worried about the economy that they cling to as much liquid wealth as possible, cutting their spending sharply and thereby triggering precisely the slump they feared. Moreover, as stimulus policies go, cash-for-clunkers looks to be unusually effective.</blockquote>		The Economist, "[[Cash for clunkers\|Cash For Clunkers]]" program:<ref name="Economist">"Clunky but effective: Why cash-for-clunkers schemes make sense right now," The Economist, accessed 2011-03-13, [http://www.economist.com/node/14162193?story_id=14162193 http://www.economist.com/node/14162193?story_id=14162193].</ref><blockquote>The boost in demand that the rebates have brought about is exactly the sort of stimulus that is urgently needed to escape what John Maynard Keynes called a “liquidity trap”. According to his theory, consumers may become so worried about the economy that they cling to as much liquid wealth as possible, cutting their spending sharply and thereby triggering precisely the slump they feared. Moreover, as stimulus policies go, cash-for-clunkers looks to be unusually effective.</blockquote>

	Lawrence Summers, March 2011 Japan earthquake:<ref name="Summers">"Earthquake May Boost Economy Short Term: Summers," CNBC, accessed 2011-03-13, [http://www.cnbc.com/id/42002647 http://www.cnbc.com/id/42002647].</ref><blockquote>Friday's massive earthquake is yet another challenge to Japan's recovery but it may provide a jolt to the economy over the short term, Lawrence Summers, president emeritus of Harvard University and former director of the White House National Economic Council, told CNBC.		Lawrence Summers, March 2011 Japan earthquake:<ref name="Summers">"Earthquake May Boost Economy Short Term: Summers," CNBC, accessed 2011-03-13, [http://www.cnbc.com/id/42002647 http://www.cnbc.com/id/42002647].</ref><blockquote>Friday's massive earthquake is yet another challenge to Japan's recovery but it may provide a jolt to the economy over the short term, Lawrence Summers, president emeritus of Harvard University and former director of the White House National Economic Council, told CNBC.

John James: /* Links */ internal link+integrated template

2011-08-30T12:52:20Z

Links: internal link+integrated template

← Older revision		Revision as of 12:52, 30 August 2011
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	* [http://bastiat.org/en/twisatwins.html That Which is Seen, and That Which is Not Seen] (essay in English)		* [http://bastiat.org/en/twisatwins.html That Which is Seen, and That Which is Not Seen] (essay in English)
	* [http://blog.mises.org/13436/the-broken-window-2/ "The Broken Window Fallacy" video] ([http://www.youtube.com/watch?v=QG4jhlPLVVs "no accents" version])		* [http://blog.mises.org/13436/the-broken-window-2/ "The Broken Window Fallacy" video] ([http://www.youtube.com/watch?v=QG4jhlPLVVs "no accents" version])
	* [http://www.youtube.com/watch?v=erJEaFpS9ls "The Broken Window Fallacy"] by [[Art Carden]] with LearnLiberty.org		* [http://www.youtube.com/watch?v=erJEaFpS9ls "The Broken Window Fallacy"] by [[Art Carden]] with [[LearnLiberty.org]]
	* ~~[http://mises.org/daily/~~5593~~/The-BrokenWindow-Fallacy~~ The Broken-Window Fallacy~~] by~~ Robert P. Murphy, August 2011		* {{md\|5593\|The Broken-Window Fallacy\|[[Robert P. Murphy]]\|August 2011}}

	{{DEFAULTSORT:Parable Of The Broken Window}}		{{DEFAULTSORT:Parable Of The Broken Window}}

Pestergaines: /* Links */ +res

2011-08-29T21:30:44Z

Links: +res

← Older revision		Revision as of 21:30, 29 August 2011
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	* [http://blog.mises.org/13436/the-broken-window-2/ "The Broken Window Fallacy" video] ([http://www.youtube.com/watch?v=QG4jhlPLVVs "no accents" version])		* [http://blog.mises.org/13436/the-broken-window-2/ "The Broken Window Fallacy" video] ([http://www.youtube.com/watch?v=QG4jhlPLVVs "no accents" version])
	* [http://www.youtube.com/watch?v=erJEaFpS9ls "The Broken Window Fallacy"] by [[Art Carden]] with LearnLiberty.org		* [http://www.youtube.com/watch?v=erJEaFpS9ls "The Broken Window Fallacy"] by [[Art Carden]] with LearnLiberty.org
			* [http://mises.org/daily/5593/The-BrokenWindow-Fallacy The Broken-Window Fallacy] by Robert P. Murphy, August 2011

	{{DEFAULTSORT:Parable Of The Broken Window}}		{{DEFAULTSORT:Parable Of The Broken Window}}

Daniel Hewitt at 12:37, 17 August 2011

2011-08-17T12:37:16Z

← Older revision		Revision as of 12:37, 17 August 2011
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	Figure a multiplier of 3, and thus an impact of the Hoover Dam during the Great Depression of 150,000 employment-years of useful work relative to what would have been the case had the appropriation been cancelled and the resources devoted to "deficit reduction."</blockquote>		Figure a multiplier of 3, and thus an impact of the Hoover Dam during the Great Depression of 150,000 employment-years of useful work relative to what would have been the case had the appropriation been cancelled and the resources devoted to "deficit reduction."</blockquote>

	[[Paul Krugman]], on military buildups:<ref name="Space Aliens">Krugman, Paul. [http://www.youtube.com/watch?v=E1Fzzs7oVaA] ''CNN interview, August 14, 2011''.</ref><blockquote>'''PAUL KRUGMAN, NEW YORK TIMES''': Think about World War II, right? That was actually negative social product spending, and yet it brought us out.		[[Paul Krugman]], on military buildups:<ref name="Space Aliens">Krugman, Paul. [http://www.youtube.com/watch?v=E1Fzzs7oVaA] CNN interview, August 14, 2011.</ref><blockquote>'''PAUL KRUGMAN, NEW YORK TIMES''': Think about World War II, right? That was actually negative social product spending, and yet it brought us out.

	I mean, probably because you want to put these things together, if we say, "Look, we could use some inflation." Ken and I are both saying that, which is, of course, anathema to a lot of people in Washington but is, in fact, what the basic logic says.		I mean, probably because you want to put these things together, if we say, "Look, we could use some inflation." Ken and I are both saying that, which is, of course, anathema to a lot of people in Washington but is, in fact, what the basic logic says.

Daniel Hewitt: /* Contemporary Examples */

2011-08-17T12:35:33Z

Contemporary Examples

← Older revision		Revision as of 12:35, 17 August 2011
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	Figure a multiplier of 3, and thus an impact of the Hoover Dam during the Great Depression of 150,000 employment-years of useful work relative to what would have been the case had the appropriation been cancelled and the resources devoted to "deficit reduction."</blockquote>		Figure a multiplier of 3, and thus an impact of the Hoover Dam during the Great Depression of 150,000 employment-years of useful work relative to what would have been the case had the appropriation been cancelled and the resources devoted to "deficit reduction."</blockquote>

			[[Paul Krugman]], on military buildups:<ref name="Space Aliens">Krugman, Paul. [http://www.youtube.com/watch?v=E1Fzzs7oVaA] ''CNN interview, August 14, 2011''.</ref><blockquote>'''PAUL KRUGMAN, NEW YORK TIMES''': Think about World War II, right? That was actually negative social product spending, and yet it brought us out.

			I mean, probably because you want to put these things together, if we say, "Look, we could use some inflation." Ken and I are both saying that, which is, of course, anathema to a lot of people in Washington but is, in fact, what the basic logic says.

			It's very hard to get inflation in a depressed economy. But if you had a program of government spending plus an expansionary policy by the Fed, you could get that. So, if you think about using all of these things together, you could accomplish, you know, a great deal.

			If we discovered that, you know, space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months. And then if we discovered, oops, we made a mistake, there aren't any aliens, we'd be better –

			'''ROGOFF''': And we need Orson Welles, is what you're saying.

			'''KRUGMAN''': No, there was a "Twilight Zone" episode like this in which scientists fake an alien threat in order to achieve world peace. Well, this time, we don't need it, we need it in order to get some fiscal stimulus.</blockquote>

	==References==		==References==