Krugman bemoans lost economic boost from too mild earthquake
Ampull4th Today 08:45 AM
I thought that the earthquake and tsunami in Japan was part of the headwinds slowing down the American economy. Somehow a devestating earthquake in Virginia would create economic tailwinds? I guess Virginia and the east coast don't supply manufacturers anywhere.
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Hitchhiker [Moderator] 19 minutes ago
The broken window fallacy. He has used it many times before so I don't doubt one bit that he said this. Of course, repairing quake damage only returns us to the previous state consuming resources that could have been used for growth but, if one uses the post quake state as the new standard to measure from, then it would lead to growth but, only in a very perverted sense. The same growth generated by the broken window. We just have to not count the opportunity lost.
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mark of fish [Moderator] 17 minutes ago
Well, then maybe World War Three would be a good deal. If the whole world were reduced to rubble, we'd need to rebuild everything.
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