lotstodo
aka "The Jackal"
http://finance.yahoo.com/blogs/the-exchange/economic-impact-hurricane-sandy-not-bad-news-150458002.html
"[R}ebuilding after Sandy, especially in an economy with high unemployment and underused resources in the construction industry, will unleash at least $15-$20 billion in new direct private spending -- likely more as many folks rebuild larger than before, and the capital stock that emerges will prove more economically useful and productive."
Hey brainiac, where is that $15-$20 Billion coming from? Keynesians are programed to ignore the unseen, that being where that money would have gone had disaster not directed it toward construction jobs Perhaps NYC would have built a new park in Queens, instead of shoveling sand in Rockaway. Maybe money now spent on erectors on West 57th Street would have been spent on Ironworkers instead. Perhaps a Pizza shop owner in lower Manhattan would have bought a new oven instead of new carpet, food, and furniture. Maybe his Christmas spending will be a little lighter this year.
That is called the "Broken Window Fallacy" and it should be taught in every Government or Economics 101 class in the nation. Every dollar in the economy has a purpose that the holder believes will bring them prosperity, and redirecting that dollar does not create any additional economic activity in the medium or long range. In fact, emergency spending comes at the COST of long term prosperity.
"[R}ebuilding after Sandy, especially in an economy with high unemployment and underused resources in the construction industry, will unleash at least $15-$20 billion in new direct private spending -- likely more as many folks rebuild larger than before, and the capital stock that emerges will prove more economically useful and productive."
Hey brainiac, where is that $15-$20 Billion coming from? Keynesians are programed to ignore the unseen, that being where that money would have gone had disaster not directed it toward construction jobs Perhaps NYC would have built a new park in Queens, instead of shoveling sand in Rockaway. Maybe money now spent on erectors on West 57th Street would have been spent on Ironworkers instead. Perhaps a Pizza shop owner in lower Manhattan would have bought a new oven instead of new carpet, food, and furniture. Maybe his Christmas spending will be a little lighter this year.
That is called the "Broken Window Fallacy" and it should be taught in every Government or Economics 101 class in the nation. Every dollar in the economy has a purpose that the holder believes will bring them prosperity, and redirecting that dollar does not create any additional economic activity in the medium or long range. In fact, emergency spending comes at the COST of long term prosperity.
