Reply To: Hurricanes, Stimulus and Global Warming



Well yes. Many phony economists literally call for a decrease in productivity as our cure. This is one of many inherent problems in Keynesian logic. It is the broken window fallacy. Economics in One Lesson refutes this. There are unintended consequences that Krugman refuses to acknowledge.

If I had $1 million……..

1. With a Hurricane devastating my factory, I have to spend it to rebuild.

2. Without a Hurricane devastating my factory I have $1 million to invest for growth, or I can buy three Ferrari 458’s.

Without a hurricane, society has more stuff. I’d really like to see someone on their side of the argument practice what they preach.

(imagining Krugman setting his home ablaze and gloating about how wonderful this will be for the economy)