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To: MrB

http://en.wikipedia.org/wiki/Parable_of_the_broken_window

My interpretation of this is that breaking a window is a net decrease to the system as a whole and is a net cost to the system.

Everything comes down to input and output of a system, that is why Keynesian Economics don’t work.

If they go back to basic system theory, they are making up false inputs into the system. Any balanced system when burdened with too much artificial input or output becomes unstable.

And that is if it was a physical system, just imagine once you through in human beings.


21 posted on 08/30/2011 7:34:01 AM PDT by dila813
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To: dila813
My interpretation of this is that breaking a window is a net decrease to the system as a whole and is a net cost to the system.

The net cost of Keynesianism to the system is the taking/destroying capital from the more efficient private sector to distribute it through the much less efficient gov't sector. They try to mitigate (lie about) this net loss to the system by talking about the "multiplier factor". This "multiplier" is just a rehash of the justification for the broken windows fallacy.

29 posted on 08/30/2011 7:52:06 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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