Japan’s supposed silver lining

posted by
March 23, 2011
Foundation for Economic Education
by William L. Anderson  
Posted in Commentary

"Anyone familiar with Henry Hazlitt’s classic Economics in One Lesson knows about the 'broken window fallacy' in economics. The fallacy lies in thinking that the destruction of wealth that occurs in natural and manmade disasters has a silver lining: the economic activity prompted by the need to rebuild. What is overlooked is how the resources used in rebuilding would have been used had the destruction not occurred." (03/23/11)


Our Sponsors