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.

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  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.

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  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. ;-)

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