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Explain Why Some Teenagers Throw A Baker's Window

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some teenagers throw a brick through a baker’s window. The gathering crowd said what a shame, but soon focused on the silver lining: much helpful economic activity will be set in motion when the baker has the window replaced. The repairman has more income to spend on something else, and the seller of something else will have more income to spend on still something else, and so on until we have an expansion of economic activity that is some multiple of the initial repair job.

Bastiat called it a fallacy because, while the spending chain originating with the broken window, does generate economic activity, it does so at the expense of other spending chains that don’t occur because this one did. In other words, had he not had to spend his money

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