Post has been Killed

The Greatest Economic Myth: Government as a Window Breaker

Llewellyn (Lew) H. Rockwell, Jr. explains the greatest economic myth, reapplying Henry Hazlitt's lesson in terms of modern government: all told in a suave, articulated style.

Recorded at the Mises Circle in Houston, Saturday 26 January 2008. www.mises.org
Farhad2000says...

Am sorry but this is stupid, I just can't believe someone would misread the broken window theory in such a way.

The broken window theory was taught to me as a function of multipliers across the economy not as a net GDP gain scenario. i.e. as an incentive to drive economic activity across a model small scale economy to make students understand the multiplier effect.

Furthermore the government as a window breaker is a fallacy to claim as a statement. The government stimulus to the economy is to loosen money in the economy, so instead of saving there is expenditure, because the government is expending money, the workers will have added income, so they will spend it and on and on through the application of multiplier effect.

This is why I hate modern economics as a whole, because seemingly educated people like this come out and postulate a economy theory in a model economy to try and explain a far more complex system. Ridicule it and then put forth their own model economic theory and claim that it will cure all social ills, such as constant tax cuts.

quantumushroomsays...

What magickal powers does the government have, spending money that THE PEOPLE WHO MADE THAT MONEY don't have?

The answer is none.

Government creates nothing. It's just raw, dumb force and (excessive) taxation is the power to destroy.

Obama & Friends know what it takes to turn the economy around. They just won't do it. I would enjoy their downfall except they're the last to be hurt by their folly. But hey, America, you wanted teh socialism, you got it.

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