Does Government Spending Grow the Economy?

It’s often said that WWII was the reason the Great Depression ended. Larry Summers recently proposed that the Japan tragedy would be beneficial to the world economy. (The truth is that oil dropped because they will be using less and many are predicting that the world’s 3rd largest economy will never recover. After any great tragedy that destroys personal property some economist says that we shouldn’t be gloomy because it’s actually good for the economy.

The truth is that war, economic stimulus, and natural disasters are bad for the economy. Watch this short video to learn why:


The broken window fallacy was first introduced by a French philosopher named Frederic Bastiat. He wrote a short book titled “The Law.” It’s surprisingly easy to read, and it will really enlighten you. Pick it up here.

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