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Social ScienceCan you thoroughly explain the broken window fallacy?
Can you thoroughly explain the broken window fallacy?
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Earlier to Broken window fallacy given by Frederic bastiat, the economist was of the opinion that the window broken by the son will boost up the economy by increasing the consumption in the economy, as the father of that son has to pay for repairing that broken window to the window repair man, who will further have to incurr the expenses and have to pay out something to another person and so on.
But Bastiat points out that this notion is fallacy as the broken window will not help out the economy as a whole as the total consumption in the economy remains the same. This due to that fact when the father pays the money to the repair man for repairing the window, it will definitely increases the consumption of th...
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