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Broken window fallacy defended

January 3, 2005

Bloomberg finds economists to refute Christopher Westley on Mises.org. Yes, they argue that disasters can generate economic growth so long as they are predictable and frequent. Broken and destroyed property is usually replaced using better technology, they say. Using this logic, the federal government should spur greater growth and technological development by regularly and frequently bulldozing random homes and businesses across the country.

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