3 ms·

Broken window fallacy

• BaseballPhysics 3y ago
  Uh, no, absolutely not. The broken window fallacy is about destroying value to create work. The point is that the result is a net negative for society. This is a case of the government issuing debt to push money into the economy and keeping businesses afloat. Some of those applicants may have been ineligible fraudsters, but their spending those funds still results in that cash circulating in the economy. Is that as beneficial as keeping a business afloat? No. But there's no reason to believe the result is a net negative.