What is The Parable of the Broken Window?

Some people argue that natural disasters and other acts of destruction create wealth and employment as we repair the damage they’ve caused. Professor Dan Russell explains that this fallacy fails to take into “opportunity costs” into consideration. Whenever we use a resource for one purpose, like fixing a window, we give up the opportunity to use that resource for another purpose. We only know if the use of a resource has created value if we compare it with the the alternate uses we had to forego. forego.

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[benjiejr.a.maquinana]

who's here because of module in ap?

[NicholasWongCQ]

It's amazing that something like this needed to be explained at all.

[chubbyninja]

Ignoring opportunity cost is the key to believing in Keynesian economics.

If breaking something REALLY created wealth, wouldn't it make sense to break EVERYTHING?!

[supersonicdickhead]

Think of it in terms of thermodynamics. If you gain entropy (broken window) the energy required to put it back is always more than you lost, never mind a surplus (jobs for bakers etc). If destruction created wealth it would be an economic perpetual motion machine.

[RodneyBenker]

Thank you @LearnLiberty I regularly use your videos for the Libertarian Party of Indiana, and to help people understand issues throughout my social media promotion of libertarianism.

[PaxImperium]

When a window is needed for a new building, you are putting that money towards the future.
When a window is broken and must be fixed, you are paying again for something you've already paid for in the past and it is now damaging your future.

[taibhsear]

It's really simple, wealth is how much stuff you have, personally, locally, or as a state/country. If you break a window, pop a soccer ball, break a skateboard, you now have less stuff. Less stuff means less wealth, therefore destroying stuff destroys wealth.

[owendavies]

I am so glad Dave Rubin brought me here!

[RegilKentYBasas]

Hi G9 for whatching this because of Ap

[cartagas]

Anyone know the name of the background music? I'm a major fan.

[mariansidro]

Kaway-kaway sa mga Grade 9 na naririto para sagutan ang module 👋😆

[paradoxbeatsblue]

How does that make sense when you consider the amount of money in existence the Same in both scenarios?

[prtty_leii]

kelangan ko pang intindihin yung video na to pero yung utak ko nakachristmas break na

[danmathewordas]

Kapag ikaw rin ay isa sa nga Grade 9 na naghahanap ng mga Kalokohan na Comments, wag. Tapusin mo muna Module mo

[williamthethespian]

If only there was a way to stop "broken windows" from happening in the first place.

[dimamatat]

What if the boy who was breaking windows was secretly paid by the windowmaker?

[botfrag]

Im so confused rn if its right to break stuffs or nahh

[prtty_leii]

i also broke our window but instead of hiring someone to fix it my dad had a spare glass and he fixed it and no money was used💁🏻

[gilbet]

The rich tend to invest about 90% of their income and spend/consume about 10%. Whereas 100% of taxes are consumed and then gone forever. Spending consumes wealth, while investment turns it into projects that require labor. So Investment turns wealth into jobs while taxes/consumption makes it disappear. Take your pick.

[cedrickrobledo]

Araling panlipunan brought me here❤️
Is that same to you?😅