The Bridge to Economic Nowhere

President-elect Obama’s plan for a massive national public works project will fail to revive the economy. Such works did not end the Great Depression, and they did not revive the Japanese economy during the stagnant 1990s. Most such projects also take time to plan and implement, so they will not provide quick relief. The way… Continue reading The Bridge to Economic Nowhere

The Broken Window

If someone throws a stone into a shop window, the owner needs to repair it. This puts people to work and increases total output. Since this creates jobs, would we be better off breaking lots of windows and repairing them? Most folks would say this would be nonsense, since although it would employ labor, there… Continue reading The Broken Window