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Thursday, March 31, 2011

Do Disasters Stimulate The Economy?

Several State comedians said "The earthquake in Japan is great news! It will stimulate the economy!"

I am very offended, when a State comedian suggests that disasters stimulate the economy.

Suppose that were true, "Disasters stimulate the economy!" In that case, State thugs should evacuate a major city, bomb it to rubble, and then rebuild it. When you suggest that, a State comedian says "Now you're being silly."

State comedians also say "War stimulates the economy!" A more accurate explanation is "War increases profits for military contractors. They spend money lobbying. They hire economists to say 'War is good for the economy!'"

If there's more spending on war, there's less spending in the productive sector of the economy. If there's effort spent rebuilding after a disaster, that takes away from other productive uses.

It is obviously silly, when State comedians say "Disasters stimulate the economy!" If that were true, then bombing every major city to rubble would be GREAT for the economy.


Anonymous said...

Do Disasters Stimulate The Economy?

Of course!

It's easy to see. This is how it works:
Disasters do stimulate economy in the same way that an engaged parking brake improves your gas mileage!

dionysusal said...

Are you talking about the Broken Window Fallacy?

FSK said...

It's a variant of the broken window fallacy. It's celebrating a natural disaster, rather than someone intentionally breaking windows.

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