Saturday, 1 October 2011


Do you remember playing football in your garden or in the backyard? How many times after your strong kick the ball flew in a wrong direction? And… Score! Who cares about the broken window!? I assume that your parents were not very proud of you and there was no need to explain or excuse. The game was over.

Now, let’s think about it from another point of view. Your parents had to pay for the new window and buy glass and call assistance. The window company has earned more money. The owners could have buy better machinery so another company gained profit and so on…

What’s my point? Was breaking the window beneficial and helpful to encourage more people to exchange goods and services and, consequently, effect in a possible economic growth? Does destroying one thing causes further, uncountable benefits? Should people break their windows during a recession to boost the economy?

The answer seems to be obvious. That cannot be true! So how to explain it?

Imagine the situation when you miss the window. Your parents do not have to spend their money on repairing it and are able to buy you a bicycle instead. The bicycle company buys  more helmets (REMEMBER: SAFETY IS VERY IMPORTANT!) and etc. Everything looks similar but your window is in one piece.  Agreed?

That’s what I think,


No comments:

Post a Comment