Days of Change

The Broken Window | July 11, 2014

Liberals and liberal economists (who are basically bad economists) like to tout the idea of Keynesian economics as a panacea for any economic problem. In reality, Keynes only suggested the government use spending (deficit and otherwise) to spur new economic activity, not to create it. The United States deficit spends so much that taking it away, even in a booming economy, would put us into a recession. Instead of being stimulative, government spending is a drug where overdose or withdrawal are the pending options.

One of the ways conservatives counter make-work government spending as a solution is with the broken window theory. Economic activity is great when people are making and buying things, but liberals think economic activity is also great when someone is paid to dig a hole and fill it back up because they get a paycheck that will go into the economy. Poor people who get more food stamps are not savers and the government money goes right into the economy, according to Democratic Party leadership.

If a storm breaks a window, the owner has to spend money (from savings or insurance) to someone to fix the window. The installer also pays for the raw materials to fix a window. Now those people have money to buy other things. This is also why World War II likely ended the Great Depression. The military assets owned by the government were used and other parts had to be made. Job seekers had many opportunities and households made more money. Important things were produced and people got work.

Now, if jobs only exists to provide a paycheck and not a service, does creating work with no product have a positive effect? If two neighbors break each other’s windows (let’s assume through innocent baseball playing) and pay for each other’s repairs, does that double the economic activity? Paul Krugman suggested that an alien attack would be good for the economy because we would need to rebuild. Or we could just break everyone’s windows.

The White House reported a potentially low budget deficit of $580 billion for this year. I’m rather incredulous, since that’s about as much as the service on the 17 trillion-dollar debt. The budget would have to be internally balanced for those figures to be accurate. Part of the BS seems to be that, once again, they are predicting big cuts and large economic growth in the last 2-3 years of a 10 years baseline. They’re also using figures like 2-3% growth when it is likely we’ll be below 1% this year.

I look forward to the day that number is revised as publicly than the crowing announcement about a lower deficit. An alien will probably break my window before that happens.


Posted in Uncategorized


  1. I mean a space alien breaking my window. An illegal alien will probably break my window in the next month the way things are going.

    Comment by 1539days — July 11, 2014 @ 10:50 pm

  2. I wonder what the Nobel committee members were smoking when they gave Krugman the prize.

    Dems are liars, and once again the fish stinks from the head down. 2-3% growh, yeah, right.
    The aliens in CA don’t have time to break windows. They’re too busy breaking the bank.

    Comment by Mary — July 11, 2014 @ 11:49 pm

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