Hurricane Sandy has passed with minimal loss of human life, but swathes of destruction. Now is the time to point out the stupidity of Keynesianism, and all its calls for destruction to “stimulate” the economy. It will take billions of dollars and months of effort to regain the standard of living enjoyed on October 28th, 2012. How much better off we would be if it had never struck. This is one of the central errors of Keynesianism — that destruction can stimulate the economy, be it through war or natural disaster. It is the broken window fallacy on a scale to which even Boobus can relate.
Update: Roland W. writes: ” I just heard CNN’s Ali Velshi say that we’ll have to wait at least six months to determine whether the storm was a plus or minus for the area, since the rebuilding could prove to be a great stimulus! Velshi made the comment from the middle of a deserted intersection – deserted because thousands of normally productive people have been told by the government to stay home.”
True that, Roland. Now pardon me while I stick a fork in my eye.7:56 am on October 30, 2012 Email John Keller