The Broken Window Fallacy

Stephen Gutowski | August 4, 2010
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It's not everyday that you come across an artful take down of the core principle involved in liberal economic theory but, thanks to Cubachi, today is one of those days:

It's that simple. Wealth can either stay in the private sector or the government can rip it out and use it for it's own purposes. Anytime the government takes wealth out of the private sector that will, inevitably, result in lower productivity from the private sector.

That, of course, leaves us to one conclusion. The only way you can believe that government programs stimulate the economy is if you believe that the government is more efficient than the private sector. And the only way you can believe the government is more efficient than the private sector is if you're a life-long shut-in who is also high on crack. Therefor the government should stick to taking wealth out of the private sector only when necessary. In other words, the government should stick to things that it and only it can or should do. And though we may debate about what exactly it is that only the government can or should do but, surely, providing cocaine to monkeys and many many many many many many other things our government currently does is beyond it's proper role.
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