It was bound to happen. Some Keynesian economist was going to look at the destruction in Japan and see the wonderful economic stimulus that it will generate. As it turns out that Keynesian is none other than Harvard University elite Larry Summers. This piece is from the Independent Institute and is written by David Theroux.
The broken window theory has more lives than global warming. It just will not die. Is it any wonder that our economy is a disaster with Keynesians running the show at the federal level? They see spending, of whatever kind, as an economic benefit. A previous post addressed the broken window lunacy.
“The “broken window” fallacy, one of the most pernicious in economics, has long been used to defend a wide assortment of government interventions, from urban renewal to “cash-for-clunkers” to “clean” energy subsidies to public works projects to war.”