It’s no wonder Alan Greenspan is on his way out as Federal Reserve Chairman. He testified that the American economy is in sound shape in spite of recent hurricane damage. He even stated that these storms would, at least in the short run, “exert a drag” on production and employment. Isn’t he aware of the new social/economic wisdom – as spouted by various politicians and television commentators – that all of this destruction benefitted the economy; that Bastiat’s “broken window” fallacy cannot stand up to the collective will? Perhaps if the planet was hit by a comet that wreaked universal … Continue reading Greenspan’s Gaffe