Bastiat’s Broken Window Fallacy isn’t even an analogy when it comes to Obama

by Wayne Crews on December 15, 2009

in Economy, Regulation

One can only stand back in awe.

President Obama said this at Home Depot today:

“The simple act of retro-fitting” — installing new windows, doors, cooling and heating equipment, etc. — “is one of the fastest, easiest and cheapest things we can do to put Americans back to work while saving money and reducing harmful emissions,” Obama continued. (11:19 a.m.)

He also said he thinks energy efficiency and retrofitting are “sexy,” according to Politico: “I know the idea may not be very glamorous, although I get pretty excited about it.”

But, one might ask, where does the money come from to do the sexy retrofit? Frederic Bastiat first described this broken window fallacy; here is Henry Hazlitt’s explanation of it from Economics in One Lesson. For some of us, a government that gets out of the way of free enterprise and true economic recovery is pretty sexy.

Comments on this entry are closed.

Previous post:

Next post: