Car Accident and the Broken Window Fallacy

in #economy6 years ago

 


My friend got into a car accident. Is this good for the economy? Is he stimulating the car manufacturing sector? Should he thank the person who totaled his car? This is a clear example of the broken window fallacy and the principle of the seen versus the unseen. Wealth has clearly been destroyed. The resources and money that he would have used to further his business or to satisfy the basic needs of his family have been forcefully diverted towards more pressing matters such as buying a new car. He is worse off because he used his scarce resources to return to the status quo.    


The broken window fallacy is the deceptive tool used by the State to reinforce the illusion that its influence is that of wealth creation and prosperity. The parasite always seeks to continue its predation by obfuscating its true nature and intentions. For if the host came to realize the chicanery that is being perpetrated it would slough off the parasite without hesitation and with scarcely any effort expended. Vacate the State!

   

Car Accident and the Broken Window Fallacy   


  


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