Ten recurring economic fallacies, 1774-2004.JAN 13 2008

Ten recurring economic fallacies, 1774-2004.

One of the most persistent is that of the broken window -- one breaks and this is celebrated as a boon to the economy: the window manufacturer gets an order; the hardware store sells a window; a carpenter is hired to install it; money circulates; jobs are created; the GDP goes up. In truth, of course, the economy is no better off at all.