Broken Window Fallacy Analysis

Decent Essays
My understanding regarding wasteful government spending is that it would not benefit the economy overall. Mainly, this is would be due to a part of the idea of the broken window fallacy applied in a different manner. For instance, it was explained that the money spent to repair a broken would not be spent on what they originally would have spent it on. Thus, the money spent would have still have been spent. However, now, it is to repair something broken instead of something new. Overall, the exchange would be a loss. Back to the wasting government spending, exactly as you elaborated, beneficial spending would at least be a more benevolent exchange. From my understanding, paying people to dig holes with no capital benefit is a loss. The opportunity

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