4 ms·
https://en.wikipedia.org/wiki/Broken_window_fallacy https://en.wikipedia.org/wiki/Broken_window_fallacy Spending that money in any fashion leads to equal amoun
by BorisTheBrave 6y ago
https://en.wikipedia.org/wiki/Broken_window_fallacy https://en.wikipedia.org/wiki/Broken_window_fallacy
Spending that money in any fashion leads to equal amounts of consumption and investments elsewhere (indirect spending). So we can discount it from an oppotunity cost analysis of how the money is better spent, leaving us with the common sense conclusion that investing 2.4bn in something useless is indeed a waste of 2.4bn's of resources.
In fact, burning the money is actually better than spending the money on something unproductive - the former doesn't actually consume resources that could be used better. Burning money is essentially the same as giving it to the govt to spend as they would be free to print an amount equivalent to the burnt resources while keeping inflation as it was before.