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This is a "broken window" fallacy.
by treis 4y ago
This is a "broken window" fallacy.
- sokoloff 4y agoI think it's not the broken windows fallacy when it increases many remote workers' savings rate. That's different from the parable of paying a glazier for the window instead of a tailor for a suit, but rather having less money circulating in the economy when 20 days a month, I don't burn $5 of gasoline, eat a $2 lunch instead of a $15 lunch, and wear sweat pants instead of office clothes. That could be $3000 of spending reduction for me that isn't replaced with $3000 of other consumption, but rather a significant portion of it goes into savings/investments.
- ProjectArcturis 4y agoYes, but the economy is not suffering from a lack of demand right now. Quite the opposite, in fact.
- lottin 4y ago> it increases many remote workers' savings rate I think that was true during lock-outs, for obvious reasons, but now? On the contrary, people have more money to spend and the opportunity to spend it.
- brandmeyer 4y agoThe personal savings rate is well below pre-pandemic levels now. https://fred.stlouisfed.org/series/PSAVERT https://fred.stlouisfed.org/series/PSAVERT
- michaelt 4y agoIf you've had people fixing broken windows for 100 years then windows stop getting broken, it may be more efficient in the long term - but in the short term, you've got lots of glaziers going bankrupt.
- treis 4y agoWhich is bad for them but good for the overall economy. They will find other jobs and since the net benefit of fixing broken windows is 0 anything they do will grow the economy.