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Parable Of The Broken Window
The parable of the broken window was introduced by French economist Frédéric Bastiat in his 1850 essay " That Which We See and That Which We Do Not See" ("") to illustrate why destruction, and the money spent to recover from destruction, is not actually a net benefit to society. The parable seeks to show how opportunity costs, as well as the law of unintended consequences, affect economic activity in ways that are unseen or ignored. The belief that destruction is good for the economy is consequently known as the broken window fallacy or glazier's fallacy. Parable Bastiat's original parable of the broken window from "Ce qu'on voit et ce qu'on ne voit pas" (1850): Interpretations and evidence Bastiat's argument Suppose it was discovered that the little boy was actually hired by the glazier, and paid a franc for every window he broke. Suddenly the same act would be regarded as theft: the glazier was breaking windows to force people to hire his services. Yet the facts observed b ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Broken Window Large
Broken may refer to: Literature * Broken (Armstrong novel), ''Broken'' (Armstrong novel), a 2006 novel by Kelley Armstrong in the ''Women of the Otherworld'' series * Broken (Slaughter novel), ''Broken'' (Slaughter novel), a 2010 novel by Karin Slaughter Music Albums * ''Broken (And Other Rogue States)'', a 2005 album by Luke Doucet * Broken (MBLAQ EP), ''Broken'' (MBLAQ EP) (2014) * Broken (Nine Inch Nails EP), ''Broken'' (Nine Inch Nails EP), (1992) * Broken (Soulsavers album), ''Broken'' (Soulsavers album) (2009) * Broken (Straight Faced album), ''Broken'' (Straight Faced album) (1996) Songs * Broken (Jake Bugg song), "Broken" (Jake Bugg song) (2013) * Broken (Sam Clark song), "Broken" (Sam Clark song) (2009) * Broken (Coldplay song), "Broken" (Coldplay song) (2019) * Broken (Elisa song), "Broken" (Elisa song) (2003) * Broken (Lifehouse song), "Broken" (Lifehouse song) (2008) * Broken (lovelytheband song), "Broken" (lovelytheband song) (2017) * Broken (Kate Ryan son ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
2007 United Kingdom Floods
A series of large floods occurred in parts of the United Kingdom during the summer of 2007. The worst of the flooding occurred across Scotland on 14 June; East Yorkshire and the Midlands on 15 June; Yorkshire, the Midlands, Gloucestershire, Herefordshire and Worcestershire on 25 June; and Gloucestershire, Herefordshire, Worcestershire, Oxfordshire, Berkshire and South Wales on 28 July 2007. June was one of the wettest months on record in Britain (see List of weather records). Average rainfall across the country was ; more than double the June average. Some areas received a month's worth of precipitation in 24 hours. It was Britain's wettest May–July period since records began in 1776. July had unusually unsettled weather and above-average rainfall through the month, peaking on 20 July as an active frontal system dumped more than of rain in southern England. Civil and military authorities described the June and July rescue efforts as the biggest in peacetime Britain. The Envi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Spending Multiplier
In economics, the fiscal multiplier (not to be confused with the money multiplier) is the ratio of change in national income arising from a change in government spending. More generally, the exogenous spending multiplier is the ratio of change in national income arising from any autonomous change in spending (including private investment spending, consumer spending, government spending, or spending by foreigners on the country's exports). When this multiplier exceeds one, the enhanced effect on national income may be called the multiplier effect. The mechanism that can give rise to a multiplier effect is that an initial incremental amount of spending can lead to increased income and hence increased consumption spending, increasing income further and hence further increasing consumption, etc., resulting in an overall increase in national income greater than the initial incremental amount of spending. In other words, an initial change in aggregate demand may cause a change in agg ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rent-seeking
Rent-seeking is the act of growing one's existing wealth without creating new wealth by manipulating the social or political environment. Rent-seeking activities have negative effects on the rest of society. They result in reduced economic efficiency through misallocation of resources, reduced wealth creation, lost government revenue, heightened income inequality, and potential national decline. Attempts at capture of regulatory agencies to gain a coercive monopoly can result in advantages for rent-seekers in a market while imposing disadvantages on their uncorrupt competitors. This is one of many possible forms of rent-seeking behavior. Description The term rent, in the narrow sense of economic rent, was coined by the British 19th-century economist David Ricardo, but rent-seeking only became the subject of durable interest among economists and political scientists more than a century later after the publication of two influential papers on the topic by Gordon Tullock in 19 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Opportunity Cost
In microeconomic theory, the opportunity cost of a particular activity is the value or benefit given up by engaging in that activity, relative to engaging in an alternative activity. More effective it means if you chose one activity (for example, an investment) you are giving up the opportunity to do a different option. The optimal activity is the one that, net of its opportunity cost, provides the greater return compared to any other activities, net of their opportunity costs. For example, if you buy a car and use it exclusively to transport yourself, you cannot rent it out, whereas if you rent it out you cannot use it to transport yourself. If your cost of transporting yourself without the car is more than what you get for renting out the car, the optimal choice is to use the car yourself. In basic equation form, opportunity cost can be defined as: "Opportunity Cost = (returns on best Forgone Option) - (returns on Chosen Option)." The opportunity cost of mowing one’s own la ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Jevons Paradox
In economics, the Jevons paradox (; sometimes Jevons effect) occurs when technological progress or government policy increases the efficiency with which a resource is used (reducing the amount necessary for any one use), but the falling cost of use increases its demand, increasing, rather than reducing, resource use. The Jevons' effect is perhaps the most widely known paradox in environmental economics. However, governments and environmentalists generally assume that efficiency gains will lower resource consumption, ignoring the possibility of the effect arising. In 1865, the English economist William Stanley Jevons observed that technological improvements that increased the efficiency of coal use led to the increased consumption of coal in a wide range of industries. He argued that, contrary to common intuition, technological progress could not be relied upon to reduce fuel consumption. The issue has been re-examined by modern economists studying consumption rebound effects f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dutch Disease
In economics, the Dutch disease is the apparent causal relationship between the increase in the economic development of a specific sector (for example natural resources) and a decline in other sectors (like the manufacturing sector or agriculture). The term was coined in 1977 by ''The Economist'' to describe the decline of the manufacturing sector in the Netherlands after the discovery of the large Groningen natural gas field in 1959. The presumed mechanism is that as revenues increase in the growing sector (or inflows of foreign aid), the given nation's currency becomes stronger (appreciates) compared to currencies of other nations (manifest in an exchange rate). This results in the nation's other exports becoming more expensive for other countries to buy, and imports becoming cheaper, making those sectors less competitive. While it most often refers to natural resource discovery, it can also refer to "any development that results in a large inflow of foreign currency, includ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Disaster Capitalism
''The Shock Doctrine: The Rise of Disaster Capitalism'' is a 2007 book by the Canadian author and social activist Naomi Klein. In the book, Klein argues that neoliberal free market policies (as advocated by the economist Milton Friedman) have risen to prominence in some developed countries because of a deliberate strategy of "shock therapy". This centers on the exploitation of national crises (disasters or upheavals) to establish controversial and questionable policies, while citizens are too distracted (emotionally and physically) to engage and develop an adequate response, and resist effectively. The book advances the idea that some man-made events, such as the Iraq War, were undertaken with the intention of pushing through such unpopular policies in their wake. Some reviewers criticized the book for making what they viewed as simplifications of political phenomena, while others lauded it as a compelling and important work. The book served as the main source of a 2009 document ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Creative Destruction
Creative destruction (German: ''schöpferische Zerstörung'') is a concept in economics which since the 1950s is the most readily identified with the Austrian-born economist Joseph Schumpeter who derived it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle. It is also sometimes known as Schumpeter's gale. According to Schumpeter, the "gale of creative destruction" describes the "process of industrial mutation that continuously revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one". In Marxian economic theory the concept refers more broadly to the linked processes of the accumulation and annihilation of wealth under capitalism. The German sociologist Werner Sombart has been credited with the first use of these terms in his work ''Krieg und Kapitalismus'' (''War and Capitalism'', 1913).Describing the way in which the destruction of forests in Europe laid ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cobra Effect
A perverse incentive is an incentive that has an unintended and undesirable result that is contrary to the intentions of its designers. The cobra effect is the most direct kind of perverse incentive, typically because the incentive unintentionally rewards people for making the issue worse. The term is used to illustrate how incorrect stimulation in economics and politics can cause unintended consequences. Examples of perverse incentives The original cobra effect The term ''cobra effect'' was coined by economist Horst Siebert based on an anecdote of an occurrence in India during British rule. The British government, concerned about the number of venomous cobras in Delhi, offered a bounty for every dead cobra. Initially, this was a successful strategy; large numbers of snakes were killed for the reward. Eventually, however, enterprising people began to breed cobras for the income. When the government became aware of this, the reward program was scrapped. When cobra breeders s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Production–possibility Frontier
A production–possibility frontier (PPF), production possibility curve (PPC), or production possibility boundary (PPB), or transformation curve/boundary/frontier is a curve which shows various combinations of the amounts of two goods which can be produced within the given resources and technology/a graphical representation showing all the possible options of output for two products that can be produced using all factors of production, where the given resources are fully and efficiently utilized per unit time. A PPF illustrates several economic concepts, such as allocative efficiency, economies of scale, opportunity cost (or marginal rate of transformation), productive efficiency, and scarcity of resources (the fundamental economic problem that all societies face). This tradeoff is usually considered for an economy, but also applies to each individual, household, and economic organization. One good can only be produced by diverting resources from other goods, and so by producing ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Military Budget
A military budget (or military expenditure), also known as a defense budget, is the amount of financial resources dedicated by a state to raising and maintaining an armed forces or other methods essential for defense purposes. Financing militaries Military budgets often reflect how strongly a country perceives the likelihood of threats against it, or the amount of aggression it wishes to conjure. It also gives an idea of how much financing should be provided for the upcoming fiscal year. The size of a budget also reflects the country's ability to fund military activities. Factors include the size of that country's economy, other financial demands on that entity, and the willingness of that entity's government or people to fund such military activity. Generally excluded from military expenditures is spending on internal law enforcement and disabled veteran rehabilitation. The effects of military expenditure on a nation's economy and society, and what determines military expendit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
