[FoRK] In the face of record profits and disaster

James Tauber jtauber
Wed Aug 31 22:34:07 PDT 2005


Bzzt. Thank you for playing.

Go read Bastiat[1]. Spending after disasters doesn't help the economy as
a whole - there's this pesky little thing called opportunity cost. While
certain industries may be advantaged, this will be offset by other
industries that will be (in some cases, much) worse off.

James

[1] http://www.econlib.org/library/Bastiat/basEss1.html

On Wed, 31 Aug 2005 15:47:17 -0700, "Adam L Beberg" <beberg at mithral.com>
said:

> Are you kidding? Do you realize how much MONEY will be made rebuilding 
> all this stuff? Stocks went nuts today, in the up direction, as tens of 
> billions of dollars will be sucked out of taxpayers pockets and put into 
> the companies that rebuild stuff. Not to mention all the consumer goods 
> that are now destroyed or looted, 65" TVs, iPods, toasters, matresses, 
> tables, even silverware.
> 
> GPD growth for the 4th quarter will be great. If anything, this 
> "disaster" has saved the economy. The economy lives to take out 
> interest-only loans for one more day/week/quarter.



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