Posts Tagged ‘“fallacy of the broken window’

  • Everyday Economics: While short term GDP spending increases, the impact on the economy from a disaster is probably not beneficial.

    Can an Earthquake Be Good for the Economy?

    Aug 26, 14 • 244 Views • 2 Comments

    19th century economic writer Frederic Bastiat warned that a disaster spending GDP boost is misleading because of unseen sacrificed economic activity....  [read more]

  • How much should cities plan for the storm of the century?

    Storm Warnings

    Oct 28, 12 • 225 Views • No Comments

    Some thoughts today about predicting natural disasters. Weeks before 308 people perished in L’Aquila from an earthquake, a government commission proclaimed the chance was slim that a disaster would occur. It did happen and now, the 6 scientists and...  [read more]

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    Averting Disasters

    Oct 3, 11 • 279 Views • No Comments

    Disaster spending is setting records this year. At 81, the number of tornadoes, earthquakes, snowstorms, hurricanes and wild fires is equal to the total for all of 2010 and more than each of the previous 3 years. Disaster spending almost created a disaster...  [read more]

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    Replacing Broken Windows

    Mar 24, 11 • 244 Views • No Comments

    During a CNBC interview, former Treasury Secretary Lawrence Summers said that Japan’s massive earthquake “…may lead to some temporary increments, ironically, to GDP, as a process of rebuilding takes place.” Commenting on the interview,...  [read more]