The "Broken Window Fallacy" is the first chapter of "Economics in One Lesson" by Hazlitt. It's online at http://www.fee.org/pdf/books/Economics_in_one_lesson.pdfShould be required reading by every citizen. It's the foundation for economic knowledge.Great post!
David Wasilewski said.........................I concur with blog post and above comment. "People ignore what is unseen." Ain't that the truth. PS I knew Paul Krugman was a doucebag (please pardon my French) but sheesh talk about ignorant comments.
I could see how tearing down an old factory or other building that was no longer in production use would be a positive thing for the economy as whole, but the Krugman quotes at the beginning of this video are astonishing. I don't know how this guy won the Nobel Prize in Economics. I read his columns in the NYT and just shake my head in disbelief.