Thursday, March 11, 2010
Misallocation Of Capital
The Real Problem With The Economy: Misallocation Of Capital?
Generally I don't like posting from other blogs but this follows on from previous discussions about economic and uneconomic growth. Good to get a different point of view and comments. Original article is in the Wall Street Journal.
Posted by refusetobuy @ 05:17 PM (803 views)
2 thoughts on “Misallocation Of Capital”
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devo says:
you live your whole life blissfully unaware of the ‘broken window fallacy’, then it pops up on hpc twice in a week!
is it any wonder i love this site?
drewster says:
devo,
I’m forever shocked at how few people have heard of the broken windows fallacy. Nearly every time the government tell us that a scheme will “create jobs”, they break into this fallacy. Yet the public lap it up.
If you like it, read up on 19th century French economist Frédéric Bastiat who originally invented the Broken Windows fallacy and the Negative Railroad concept.