Friday, August 13, 2010

The Broken Window Fallacy



One of the most annoying fallacies people spread around. You hear this nonsense all over the news, claiming how these public works projects will create wealth and give people jobs. But in the end, government can only spend money that it takes from the people either through taxation, interest rates, or inflating the currency. In any case, it is like trying to gain nutrition by drinking your own blood.

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