The “Stimulus” and the Broken Window Fallacy

It’s been a while since I posted here, but I thought OpenMarket readers may want to check out a piece I have up on TechLiberation that has generated a lot of heated discussion. I there argue that “2008 was the year of Schumpeter” and 2009 is looking like it will be the year of Bastiat/Hazlitt, because it is the year that we all give in to the broken window fallacy and come to believe that we can improve the economy by going around and smashing windows…or taking money from taxpayers and wasting it. For a more detailed review of broken windows and the modern Keynesian state, look here.