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Beware the Broken Window Fallacy: Some Economists Still Think Disasters are Good for the Economy
Foundation for Economic Education ^ | 09/12/2017 | Jeff Jacoby

Posted on 09/12/2017 10:33:07 AM PDT by SeekAndFind

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To: PGR88

“If the Depression was ended by WWII mobilization, production and consumption, then why didn’t the USA plunge right back into Depression when 12 million soldiers returned home and war spending was reduced by 90%?”

Much of the worlds production capabilities were destroyed during the war.
By wars end most of Europe was reduced to buying the tools to make the tools that make the products. Not to mention the massive war debt owed to the US by virtually every nation on the planet.

The US was not called the Armory of Democracy without reason.
The US supplied most of the goods of war needed to defeat the Axis powers.
England depended on the US for everything from blankets to tanks. We even lent them the money to lease some warships from us.
We even shipped Ford and Studebaker trucks to the Soviet Union along with other supplies.

All of that accumulated debt had to be repaid. The world spent decades repaying the US for those supplies.

The rebuilding of Europe would have taken decades longer if the US had not had the ability to supply the most basic needs to the affected nations. They could not even feed their own citizens. We had to do that too.

The vast majority of those returning 12 million soldiers, sailors and airmen were disciplined and highly motivated men with boundless pride and desire.

Face it, the US turned a profit on WW2.


61 posted on 09/12/2017 2:08:52 PM PDT by oldvirginian (The older i get the less i care what people think of me, therefore the more i enjoy life.)
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To: Alberta's Child

Consider if the post-WWII growth rates had continued to the present — or accelerated with the advent of Moore’s Law. We would all be sitting pretty. Why didn’t they? Because our controlling institutions were more interested in consolidating their power than in permitting individuals to thrive.


62 posted on 09/12/2017 2:20:20 PM PDT by AZLiberty (The logical endpoint of "zero-tolerance history" is zero history.)
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To: Alberta's Child
I'm back to watching "cold fusion" as an energy source. Things seemed pretty quiet after Rossi dumped Industrial Heat, but now things seem to be "heating up" again. E.g., E-CAT World.com

Fracking is just the bridge we need to practically limitless energy from what now seem to be unusual sources.

63 posted on 09/12/2017 2:33:40 PM PDT by AZLiberty (The logical endpoint of "zero-tolerance history" is zero history.)
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To: sparklite2

“I can only reiterate what I’ve already cited.

‘massive war spending doubled economic growth rates’”

There is a commonplace confusion between a stock (wealth, which goes down when a natural disaster strikes) and a flow (the spending that occurs when destroyed capital is subsequently replaced). To continue the analogy that others have used in this thread, if your house burns down you are worse off (less the insurance settlement you receive), but you subsequently spend more than you would have in the absence of the disaster to replace the lost items.


64 posted on 09/12/2017 2:39:31 PM PDT by riverdawg
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To: riverdawg

No disagreement there.


65 posted on 09/12/2017 2:43:54 PM PDT by sparklite2 (I'm less interested in the rights I have than the liberties I can take.)
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To: Teacher317; dfwgator

Then there was the chaos when he choked on the cherry.......

You don’t normally see women with orange hair.....


66 posted on 09/12/2017 2:48:48 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: Navy Patriot

The dindu the broken window?

Or was is a broken door?

Look at all the economic stimulus!

Guy I know works for the company that had the convenience store burned down in Ferguson. He told me they decided not to rebuild it in the same spot.


67 posted on 09/12/2017 2:50:32 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: oldvirginian

Turned a profit and gained superpower status.
.
However it was the arsenal of democracy, not armory.

To give an idea of the disparity between economic powers,
there is this tidbit:

A captured German officer was allowed to watch the latter part of the Normandy landing. He asked, “Where are all the horses?”


68 posted on 09/12/2017 2:50:39 PM PDT by sparklite2 (I'm less interested in the rights I have than the liberties I can take.)
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To: sparklite2

“Turned a profit and gained superpower status.”

With English power diminishing the US was the only nation powerful enough to stand up to the Soviets. For a while we had the only nuclear weapons in existence.
.
“However it was the arsenal of democracy, not armory.”

You have me. Not sure where I drug armory from.

“To give an idea of the disparity between economic powers,
there is this tidbit:

A captured German officer was allowed to watch the latter part of the Normandy landing. He asked, “Where are all the horses?”

It always amazed me that a German army that advocated “Lighting War” would be so dependant on trains and horses.

A great illustration was the American ability to move troops quickly to plug the hole in Belgium with the airborne units.
Without those trucks moving men the battle of the bulge may have been something altogether different.

I read somewhere that either Rommel or Guderian said “the world had to wait for the American army to see what blitzkrieg could truly accomplish”.


69 posted on 09/12/2017 3:38:53 PM PDT by oldvirginian (The older i get the less i care what people think of me, therefore the more i enjoy life.)
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To: sparklite2

WW2 only ended the Depression because the government swept up every able-bodied man AND woman to make USEFUL goods and perform USEFUL work. If we’d tried a ‘hero project’ like the Soviet Union it would have ended about as well.


70 posted on 09/12/2017 5:21:49 PM PDT by ALongRoadAhead
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To: JimRed
I saw your photo array, and in the spirit of fairness (and curiosity) searched "Hurricane Harvey and Irma looters" to specifically look for any white guys.

In the Summer of 2008 it wouldn't have crossed my mind to assemble that thread like I did.

I was still under the mistaken impression that the DemoRat Liberal Socialists and Media were uninformed about why Hurricane Katrina was so damaging, who caused the systemic unpreparedness, and that attacks on President Bush and other Republicans were not malicious in intent.

The Leftist American trash and Media Domestic Enemies, working with the Obama Administration and RINOs enlightened me to their intent and worth.

Now I simply tell it like it is, and I don't let degenerates control my language or delivery.

I didn't have the slightest concern that there would be any White guys photographed looting this soon, but there will be shortly, posted by False Flag shills, sure as the sun will rise tomorrow.

71 posted on 09/12/2017 11:18:58 PM PDT by Navy Patriot (America returns to the Rule of Law)
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To: sparklite2
Yes,I got the reference. Well done.
72 posted on 09/14/2017 6:36:31 AM PDT by JoeFromSidney
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To: sparklite2
Please take it easy on Detroit. I have two daughters and several grand-children living there.
73 posted on 09/15/2017 2:41:48 PM PDT by JoeFromSidney
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To: JoeFromSidney

My condolences.


74 posted on 09/15/2017 2:47:38 PM PDT by sparklite2 (I'm less interested in the rights I have than the liberties I can take.)
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