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.

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