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If I understand your point, the broken window fallacy is to say that a child who breaks a window has actually done something good for the economy by keeping gla
by janalsncm 3y ago
If I understand your point, the broken window fallacy is to say that a child who breaks a window has actually done something good for the economy by keeping glass makers and installers employed. Obviously this isn’t true because those people could be building new things instead of fixing the old.
Well, a huge portion of our economy is in fixing the old. Why waste so much money on healthcare for humans when we could use it to build bigger and better things. We have whole portions of the economy like food production whose entire purpose is to keep people alive. What a waste. The far more efficient option is to eliminate those people and let machines do the work. Even if GDP goes down, ultimate productivity goes up.
The same can be said for entertainment, hospitality, most education (we spend 20+ years educating people before they can meaningfully contribute) and marketing. A broken window theory might say these industries contribute to the economy and give people jobs, but actually they accomplish little.
- paulryanrogers 3y agoThere is more to life than GDP. Human population is quite high, IMO, though I'd rather its limit not be dictated by productivity.