Disastrous Economic Fallacies - Terror as Stimulus?

Do natural disasters, earthquakes, or wars stimulate an economy and create growth? Did World War 2 get the US out of the Great Depression? Frederic Bastiat explained why such thinking is fallacious. More information on the Bastiat Legacy Project is available at www.AtlasNetwork.org/BastiatLegacy, and for more videos like this from Atlas view www.vimeo.com/atlasagi

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  News & Politics

[Tom Palmer]

Money is not wealth. Money is a means of exchange. If I have $100,000,000 in dollar bills in the middle of the desert, but not a glass of water to keep me alive, I am not wealthy. (And printing money, like in Zimbabwe, doesn't make you richer; you have more money, but can't buy more stuff.) If you break a window, there is *less wealth.* Money may move from tailor to baker, but wealth was still destroyed. The tornado in Joplin made people poorer; it was not "good for the economy"

[IcyScythe]

So if WW2 didnt get us out of the great depression what did?

[Richard Bast]

Not really. If denting the car is what the customer wanted than it is filling a specialty niche which could be created by celebrity. Like an actors autograph. If it cost him money to do so than he would less likely damage the car.

[Richard Bast]

Don't know the business. However the tv was likely scrap anyway. If it would increase sales I would offer to take broken tv's for a small reduction in price if the offer brought people in to buy.

[Richard Bast]

By interrupting the dangerous and disastrous political policies begun by Republican president Herbert Hoover with the implementation of the Smoot-Hawley Act and carried over throughout the FDR presidency with policy seizing private gold holdings from citizens. The destruction of crops and cattle through the Agricultural Adjustment Act. Negative economic impacts of the National Recovery Act. 90% top tax rate and new taxes on the lower middle class. The Wagner Act and on and on.

[jeffmagic32]

Capitalism combined with a big decrease in government spending after the war

[TABOOVSKNOWLEDGE]

Zimbabwe was turned into a desert. Anything is wealth when other people want it and in the exchange you sustain or increase living standard or conduct for means of control! Power! That's the main stream view! Me? Wealth is happiness and security. Unfortunately, that is usually attained with money! That where the central bank comes to rule us all. Isn't it simple? We must get rid of the central banks!

[Julia Riber Pitt]

High school economics class all over again. Fuck it.

[JohnnyRock2000]

Jews certainly benefited from war, and I don't mean to be flip. The have Israel, they have huge political power and influence, they have their navy, army and airforce. They have American funds and war reparations by the billion$ funelling in each year. They are so strong and have such allies and influence, they have the insane luxury of being a paranoid, racist and narcissistic culture. After 60 yrs, they are aggressive and deliriously, rabidly insane.

[fubleduck]

Dick Balch sold used cars complete w/ dents made by his sledge hammer as his "trademark" That's pretty close to fulfilling the broken window illusion.

[stevemcgee99]

The same thing that gets any individual, family or business out of economic problems: re-focus efforts in more productive work. That was possible when millions of US men returned to the workforce and the US stopped wasting it's resources and time on destructive products, like bullets and fuel for destroyers. The federal budget was cut by around 50%, taxes were cut about 30%. A huge amount of economic control / regulations was ended. Bretton Woods was fresh and the dollar was still gold: $35