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Broken Windows Fallacy

The fallacious belief that destruction is good for the economy. The parable of the broken window was introduced by Frédéric Bastiat in his 1850 essay "That Which We See and That Which We Do Not See," to illustrate why destruction, and the money spent to recover from destruction, is not actually a net benefit to society.

John Stossel's Broken Window Fallacy

John Stossel explains the broken window fallacy in this brief video. 

Will Hurricane Cleanup Stimulate the Economy?

Hurricane Irene is likely to cost billions of dollars. The storm did damage but not as much as some had feared. Will the sales of batteries and flashlights – and then repair costs – give the economy a needed boost?

What is Seen and What is Unseen

Claude-Frédéric Bastiat was a french economist and writer. One of his most famous works, "What is Seen and What is Unseen", introduced the idea of opportunity cost, although it wouldn't get that name for more than sixty years.

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