I always enjoyed Bastiat's commentary on "that which is seen, and that which is not seen", and particularly the "broken window fallacy."
http://bastiat.org/en/twisatwins.html
WTF, do you rememberr saying this several months ago?
Exactly what people fail to realize is that we were the glazier's of WWII. We benefited from all the broken windows, some of which we broke at the end of the war to benefit us even more.
Originally Posted by WTF
I remember that you and I had a discussion a couple of years back about this issue, and Bastiat's little parable was mentioned (I can't remember whether you or I brought it up first).
But I liked your metaphor and was struck with a way to go further and carry out a little thought experiment.
Let's say the glazier was a crook who cooked up a scheme to build a sophisticated, expensive little machine with which the little boy could get away with breaking windows all over town, and every night. He had to take on an uncomfortable amount of debt to so so, but figured that all the new work would comfortably cover the machine, and then some.
If it can be said that World War II offered benefits for our economy in any way, they were limited to the metaphorical equivalent of last paragraph's scenario.
Wars don't make us wealthier. They
destroy wealth.
Just like breaking windows.