Broken Window Fallacy


   Did you ever wonder what it meant?  With that knowledge finally revealed to you, is it right?  Does it work?  Does it enrichen the economy after it is put to use?  Well, that should be pretty obvious, as it is called a fallacy.

   However, it makes sense for a while until you really take it, break it down, and think about it.  The Broken Window Fallacy is all about what is unseen when we spend money.  It seems that when we go to war, suffer losses, (whether that be a loved one, a city destroyed in ruins, etc.) we find more people willing to spend their hard earned money to help their country thrive again.  This boosts the economy and allows us to rebuild those losses.

   The example for the Broken Window theory is like that of a war.  A person throws a brick through a window.  The owner of the broken window then has to pay for the repair unless he wants bugs and cold/hot weather coming into his house for the night or the next several days and nights.  He goes to the window repair store and pays for it.  He goes home with less money in his pocket and a new window.

   Some people then go on to say that this is a good thing.  Money was given to the window repairman, who would then go on to buy something.  The money would continue to go on through a cycle, passing from one person to another.  This boosts the economy, they said.  However, I took it a step further and remembered this wonderful thing that we all love and enjoy.  And, that, my friends, is the wonderful thing of taxes.

   Just think about it.  Through the continuous cycle of the money going from hand to hand, the government gets more money and the amount of money given sinks lower and lower.  Meanwhile, the government is getting the taxes.  Therefore, in the long run, the economy does not really boost.  The government does.  And who really knows what the government does with our tax money.



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