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> If I run around town smashing windows with a rock, GDP goes up. I don't believe that's true. I believe that's called the "Broken Window Fallacy" in Economics
by erin_lave 10mo ago
> If I run around town smashing windows with a rock, GDP goes up.
I don't believe that's true. I believe that's called the "Broken Window Fallacy" in Economics.
- machomaster 10mo agoBreaking windows DOES increase GDP, just like the parent said. The argument ( https://en.wikipedia.org/wiki/Parable_of_the_broken_window https://en.wikipedia.org/wiki/Parable_of_the_broken_window ) only argues that not all GDP increase is good, because of waste of resources, because of the opportunity cost. That's why measuring success only by GDP is a bad idea.