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> Consumer spending is not "wealth destruction" -- who makes the fantasy coffins? Who prints the banners? Local businesses! This is the parable of the broken w
by JumpCrisscross 7mo ago
> Consumer spending is not "wealth destruction" -- who makes the fantasy coffins? Who prints the banners? Local businesses!
This is the parable of the broken window [1].
> Ghana is sitting at a 5.6% GDP growth rate
Ghana is a success story in large part due to having made a clear-eyed recovery after its 2015 IMF bailout.
[1] https://en.wikipedia.org/wiki/Parable_of_the_broken_window https://en.wikipedia.org/wiki/Parable_of_the_broken_window
- haritha-j 7mo agoThank you, TIL about the parable of the broken window. I was thinking the same thing when reading the comments, surely that money would still benefit the economy if say it was invested in the education of a child, but it would also act as a economic multiplier as the child can now contribute more to the economy. But I never knew there was a term for it. Especially this line really highlights it: > by the 2000s, many Ghanaian hospitals were earning more from storing dead bodies than from treating living patients. Surely those resources are better spent healing the living.