Bastiat And The “Broken Window” Authored by Lance Roberts via RealInvestmentAdvice.com, In times of disaster and destruction, a common narrative often emerges that rebuilding efforts will lead to economic growth. The idea that repairing damage and replacing destroyed goods creates jobs that spur consumption and stimulate economic activity is tempting. However, as French economist Frédéric Bastiat explained in his famous “Broken Window Theory,” this reasoning is fundamentally flawed. Rather than generating net economic benefits, destruction diverts resources and wealth that could have been used for more productive purposes, ultimately stifling real economic growth. Recent events, particularly the devastation caused by Hurricanes Helene and… — Continue at ZeroHedge News : Read More
