Tom Palmer of the Atlas Network has a very concise – yet quite devastating – video exposing the Keynesian fallacy that the destruction of wealth by calamities such as earthquakes or terrorism is good for economic growth. Tom cites the work of Bastiat, who sagely observed that, “There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.” As you can see from the video, many who pontificate about economic matters today miss this essential insight:
I can’t resist the opportunity to also plug a couple of my own videos that touch on the same issues. Here’s one of Keynesian economics, one on the failure of Obama’s faux stimulus, and another on the policies that actually promote prosperity.
I’m a free-lance cartoonist for Ej Webb Inc. magazine and shouldn’t it show how and why the child wanted to brake the glass? Better yet! Show a picture of who created those disturbing eras?
B J Patterson
[...] (via International Liberty) [...]
[...] committed the “broken-window” fallacy, explained more than 150 years ago by a famous French economist, Frederic [...]
[...] Yesterday, there were rumors that Krugman stated that it would have been stimulative if the earthquake had been stronger and done more damage, but he exposed this as a prank (though it is understandable that many people – including me, I’m embarrassed to admit - initially assumed it was true since he did write that the 9-11 terrorist attacks boosted growth). [...]
[...] Yesterday, there were rumors that Krugman stated that it would have been stimulative if the earthquake had been stronger and done more damage, but he exposed this as a prank(though it is understandable that many people — including me, I’m embarrassed to admit — initially assumed it was true since he did write that the 9-11 terrorist attacks boosted growth). [...]
[...] Yesterday, there were rumors that Krugman stated that it would have been stimulative if the earthquake had been stronger and done more damage, but he exposed this as a prank (though it is understandable that many people – including me, I’m embarrassed to admit - initially assumed it was true since he did write that the 9-11 terrorist attacks boosted growth). [...]
[...] Yesterday, there were rumors that Krugman stated that it would have been stimulative if the earthquake had been stronger and done more damage, but he exposed this as a prank(though it is understandable that many people — including me, I’m embarrassed to admit — initially assumed it was true since he did write that the 9-11 terrorist attacks boosted growth). [...]
[...] we can safely assume that the great 19th-century French economist Frederic Bastiat is rolling over in his grave. Classical liberalism is not enjoying a rebirth in [...]
[...] we look only at direct effects, the answer is yes. But if we channel our inner Bastiat and look at both the seen and the unseen, the answer [...]
[...] de Rugy then closes with an important insight from Frederic Bastiat (who is probably Veronique’s great great grandfather since I’m only slightly [...]