4 ms·
I think there's a Keynsian economist who denies that the broken-window fallacy is a fallacy -- who believes that it's better to have to build and continually re
by clock_tower 11y ago
I think there's a Keynsian economist who denies that the broken-window fallacy is a fallacy -- who believes that it's better to have to build and continually replace shoddy goods. Does anyone know the details on this?
- schoen 11y agoThere's Keynes himself on generating employment by burying money in the ground. https://en.wikipedia.org/wiki/The_General_Theory_of_Employment,_Interest_and_Money#Book_III:_The_Propensity_to_Consume https://en.wikipedia.org/wiki/The_General_Theory_of_Employme... I'm not sure if that example is exactly equivalent to breaking windows and paying people to fix them (for example, maybe it matters a great deal for his view that it's the government which is paying for the demand stimulus).
- clock_tower 11y agoFound it: it's Paul Krugman who advocates for this -- at least if this link (disclaimer: just skimmed the article, didn't check it or its context for their political views) is accurate: http://www.economicpolicyjournal.com/2013/12/lol-more-problems-for-krugmans-broken.html http://www.economicpolicyjournal.com/2013/12/lol-more-proble...
- deleted 11y ago[deleted]