Sunday 24 April 2011

The Broken window fallacy

With a hat tip to the Filthy Engineer, here is a simple, clear explanation of the broken window fallacy - source of pretty well every New Labour economic plicy and about half the Coalition's.

3 comments:

  1. Quite right. It is also worth noting that interest rates are low to discourage us from saving and to encourage us to spend.

    Happy Easter, p.

    ReplyDelete
  2. Very informative vid Patently which gets the old grey cells working. As an ex labourite I am becoming alert to the dangers of communism which hides under the cloak of socialism.

    I still believe in the well do helping those less fortunate...but somewhere along the line they are taking the piss out of hard working folk.

    ReplyDelete
  3. And a happy Easter to you too, M.

    Hi TBY. Both left and right believe in the successful helping the less fortunate, just in different ways. ;-)

    ReplyDelete