Friday, May 3, 2013

Another way to think of the fallacy of broken window fallacy

The boy threw a rock at the window and it was cracked. It was not serious. By chance, it broke the thermometer hung on the window. However, it does not appear broken. The shoemaker not noticing it does not heat the store enough because the thermometer shows it is warm but it is actually broken. There are solutions. The shoemaker, as soon as he finds the thermometer broken, he may buy another one. However, it costs and buying a new thermometer is unnecessary for his business. In addition, buying thermometer itself does not heat the store at all. Another way, which I prefer, is to simply heat the room warm enough to make him and his customers feel warm. Even though his thermometer says it is one million degrees Celsius, why would he have to be bothered? He only needs more heat in the store.

Thursday, May 2, 2013

The broken window fallacy is indeed a fallacy.

I have addressed it long before. I would explain why again. Still a lot of people are bought into this fallacy that a shoemaker getting his broken window fixed will make no one wealthier. The problem of this argument is that it ignores that leaving the window broken will make no one wealthier, either; rather, it will make everyone poorer. If a shoemaker does not get the broken window fixed, he cannot make shoes properly winter time because the cold wind will freeze his hand. If he can't make enough shoes, first it will make outdoor workers like snow removers worse off. If snow removers cannot work because of not enough shoes production, it will worsen the community's traffic. As a result, the entire community's productivity will be reduced. Thus, it is just stupid to leave the broken window broken because you don't believe that breaking windows and building new ones do not make the community wealthier.