Tag Archives: frederic bastiat

Broken Windows, 9/11, and World War II

Ever hear the old canard that war is good for the economy? Or that natural disasters create jobs? Those arguments illustrate one of the oldest fallacies in economics: Bastiat’s broken window fallacy. The video below, by Tom Palmer and his colleagues at the Atlas Economic Research Foundation, explains why in two minutes and change. Worth watching.

Bastiat on the Stimulus Package

Public spending is always a substitute for private spending, and that consequently it may well support one worker in place of another, but adds nothing to the lot of the working class as a whole.”

-Frederic Bastiat, Selected Essays on Political Economy, p. 16 (emphasis in original)