Wednesday, 7 November 2012

The Final Note on the Broken-Window Fallacy

Here is one final explanation on this (as it appears to some) highly complex matter on the "broken-window fallacy" and the seen and not seen (here and here). Gary North explains,
This short video was produced by students at the Mises Institute. It begins with a statement by America’s #1 Keynesian economists that World War II was a vast public works project that brought America out of the depression.
Krugman did not perceive that he was thereby admitting that almost nine years of New Deal public works spending and federal deficits, 1933-42, had failed to achieve this goal.
Here, in 3 minutes, we have the refutation of Keynes, Krugman, and the other believers in the broken window fallacy.


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