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You're describing the broken windows theory. The broken window fallacy is the claim that destruction or waste is good for the economy because the cleanup genera
by wutbrodo 6y ago
You're describing the broken windows theory. The broken window fallacy is the claim that destruction or waste is good for the economy because the cleanup generates economic activity (with the attendant multipliers). It's a fallacy because it leaves out that the original spender (by the owner of the broken window), on average, displaced other economic activity.