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Interactive video lesson plan for: The Broken Window Fallacy

Activity overview:

Does destruction create jobs? After natural disasters, terrorist attacks, and wars, some people argue that these disasters are good for the economy, because they create jobs and prosperity. Learn more: http://bit.ly/1HVAtKP

As Prof. Art Carden of Rhodes College explains, this is an example of the "broken window fallacy," a term coined by Frederic Bastiat. When a shopkeeper's window is broken, he will spend money on a new window, which gives income and jobs for glaziers. This activity is "seen," but the "unseen" is just as important: the money spend on a new window could have been spent on other things. Wealth has not increase, but only reallocated from some people to others, and society is worse off by one window.

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Tagged under: terrorist attacks,natural disasters,economics,spending,disaster,libertarianism,jobs,broken window fallacy, libertarian,libertarian,prosperity,IHS,Learn Liberty,war,economy,wealth,libertarianism explained,society,cost,wars

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