• His acerbic take on the matter is called the Broken Window Fallacy.

    FORBES: Taxing Yourself Rich

  • Probably his next most familiar passage is his Broken Window Fallacy, whereby a broken window caused by a thrown brick would lead to a chain of new spending that would stimulate the economy.

    FORBES: Happy Birthday Frederic Bastiat

  • Large hurricanes, like Sandy, can create clean-up jobs and stimulate GDP growth, although, as Bastiat pointed out in his Broken Window Fallacy, much of the spending will be diverted spending rather than net new spending.

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  • There's also a bit of the broken window fallacy at play here: Not seen is the science and investment not created by the mis-direction of resources to this or that temporarily favored project or field.

    FORBES: Magazine Article

  • So, the next couple of items on my list were from Bastiat: the petition of the candle makers, the negative railroad, and the broken window fallacy, which led in to his discussion of the seen versus the unseen.

    FORBES: Looking for Counterfactuals: The Seen versus the Unseen

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