The Broken-Window Fallacy spouted, again, by an alleged economic expert.
Friday’s massive earthquake…may provide a jolt to the [Japanese] economy over the short term, Lawrence Summers, president emeritus of Harvard University and former director of the White House National Economic Council…
“…It may lead to some temporary increments, ironically, to GDP, as a process of rebuilding takes place.”
After the Kobe earthquake in 1995 Japan actually gained some economic strength due to the process of reconstruction, he added.
Read the rest here.
The fact that he’s basing this on the GDP just shows how misleading of a statistic it is to base economic health upon.
But, of course, Fox, not to be outdone, said:
The earthquake and tsunami that struck Japan on Friday could ultimately spur economic growth as the recovery effort creates demand for goods and services needed to repair and replace devastated industries, buildings and infrastructure…
This article here.
Honestly, did anyone expect anything less from our experts?Published in