Monday, September 27, 2004
USA Today and the Broken Window Fallacy
Although natural disasters spread destruction and economic pain to a wide variety of businesses, for some, it can mean a burst in activity and revenue.
For that reason, economists tallying the numbers expect the hurricanes will be neutral in their effect on the U.S. economy, or may even give it a slight boost, particularly because of an expected reconstruction boom in the already red-hot construction industry.
I'm not crying. I'm merely contemplating sending Hagenbaugh a copy of Frederic Bastiat's That Which is Seen, and That Which is Not Seen.