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SarahBell

The Broken Window Fallacy

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http://www.bbc.co.uk/news/uk-england-bristol-34347681

When Banksy's anti-capitalist show Dismaland closes its doors on Sunday, the irony that it will have generated an estimated £20m in extra revenue for its surrounding area has not been lost on traders.

They always quote these amazing figures for Manchester Pride and the other Manchester events.

Do they really bring in that much revenue?

"Mr Fearn calculates that compared with the same period last year, an additional 50,000 nights have been sold in the town's hotels, with each guest spending an average of of £150 a night, allowing for dinner and drinks - ultimately generating about £7.5m."

How has he calculated that? Has he rung them all and asked how many extra nights they've had booked?

"150,000 people have visited the subversive theme park" in five weeks.


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That theme park is exactly the kind of thing the 3D video would be useful for, seeing as it's likely to be dismantled once it closes.

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http://www.bbc.co.uk/news/uk-england-bristol-34347681

When Banksy's anti-capitalist show Dismaland closes its doors on Sunday, the irony that it will have generated an estimated £20m in extra revenue for its surrounding area has not been lost on traders.

They always quote these amazing figures for Manchester Pride and the other Manchester events.

Do they really bring in that much revenue?

"Mr Fearn calculates that compared with the same period last year, an additional 50,000 nights have been sold in the town's hotels, with each guest spending an average of of £150 a night, allowing for dinner and drinks - ultimately generating about £7.5m."

How has he calculated that? Has he rung them all and asked how many extra nights they've had booked?

"150,000 people have visited the subversive theme park" in five weeks.

Interesting but whats it got to do with the broken window fallacy ?

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It's about opportunity cost I think.

The broken window fallacy refers to the belief that damage can be economically desirable as it creates economic activity. It ignores the opportunity cost (what people would have done if they weren't mending/replacing windows, cleaning up after pollution, war or the like).

The quote from the OP claims spending has been generated, ignoring what it might otherwise have been spent on*.

In fairness, they are talking about the "surrounding area," so if money was spent elsewhere, this may not have been as good for the "surrounding area."

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It's about opportunity cost I think.

The broken window fallacy refers to the belief that damage can be economically desirable as it creates economic activity. It ignores the opportunity cost (what people would have done if they weren't mending/replacing windows, cleaning up after pollution, war or the like).

The quote from the OP claims spending has been generated, ignoring what it might otherwise have been spent on*.

In fairness, they are talking about the "surrounding area," so if money was spent elsewhere, this may not have been as good for the "surrounding area."

The broken window fallacy is about a forced choice, not a free choice.

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How has he calculated that? Has he rung them all and asked how many extra nights they've had booked?

"150,000 people have visited the subversive theme park" in five weeks.

Most journos dont really do maths, so Im guessing it was something like:

interview 20 theme park visitors and find that 1 in 3 are staying at a hotel

extrapolate from that the total number of hotel visits

Dont bother to ask if they would have been staying in the hotel anyway, that would be "over complicating" things.

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Or staying in a hotel somewhere else.

This isn't extra 20m, it's the same 20m that would have been sent smewhere,

I think the manchester events generally boost the economy by the same figure

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If your window is broken you replace it ideally with a new one with a whole chain of suppliers middle men and fitters. Money goes into the economy.

The argument then goes that shouldn't the government routinely break all the windows, thereby generating an uptick in the economy.

The counter argument is that the window is a store of wealth, and smashing it simply destroys that wealth. What we should be aiming for is a new, innovative way to digitally represent the windows, without requiring the actual physical delivery and installation.

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I went to Dismaland, and thought it was quite good - especially for £5. There was a lot of protest about the cost of housing.. I took a few pictures for you all (if you want to see them)!

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I went to Dismaland, and thought it was quite good - especially for £5. There was a lot of protest about the cost of housing.. I took a few pictures for you all (if you want to see them)!

Yes please!

Stick them in their own thread so everyone spots them though.

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