Today’s broken window fallacy brought to you in part by the letter Q and the Washington Post:
Consumer spending quickened, businesses invested more and the government poured money into hurricane relief, causing the economy to expand at a 3.8 percent annual rate in the third quarter, the Commerce Department reported.
So, to quote “Sesame Street,” which one of those things is not like the others?
Bastiat would’ve suggested that we examine this situation for ce qu’on ne voit pas. Where did the government expenditures come from, and how else might they have been spent, if not on Hurricane relief, which was certainly not the intended expense.
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