The Latest Keynesian Stimulus: Hurricane Sandy

Hey! Did you hear the good news? Hurricane Sandy will create jobs and provide economic growth that will help drag our economy out of the doldrums. According to University of Maryland economist Professor Peter Morici, there is actually a benefit to mass destruction:

However, rebuilding after Sandy, especially in an economy with high unemployment and [...]

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The Economic Benefits of Irene

I was going to pass on David Kotok’s statement about the positive consequences of  this weekend’s hurricane, but I am seeing the same error made again and again. Here is what Kotok said:

Larry Kudlow asked for our economic assessment when we did an interview on his weekly radio show Saturday morning. Larry noted how this [...]

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The Broken Window Fallacy: Consumer Metrics Institute vs. The Daily Capitalist

One of my favorite economics lessons is Frederic Bastiat’s parable of the broken window (“That Which Is Seen, and That Which Is Not Seen” from Essays on Political Economy, published in 1850). The lesson is the common idea that when Little Johnny throws a pebble and breaks the shopkeeper’s window, the glazier will benefit from [...]

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