The Broken Window Fallacy

If you read the news, you may have noticed that journalists and politicians often like to point out that natural disasters, wars, and other destructive events can boost an economys production because they create demand for rebuilding work. Granted, this may be true in specific cases where resources (labor, capital, etc.) would otherwise have been unemployed, but does it really mean that disasters are economically beneficial? 19th-century political economist Frederic Bastiat offered an answer to such a question in his 1850 essay That Which Is Seen and That Which Is Unseen. (This was, of course, translated from the French Ce quon voit et ce quon ne voit pas.) Bastiats reasoning goes as follows: Â   Have you ever witnessed the anger of the good shopkeeper, James Goodfellow, when his careless son happened to break a pane of glass? If you have been present at such a scene, you will most assuredly bear witness to the fact that every one of the spectators, were there even thirty of them, by common consent apparently, offered the unfortunate owner this invariable consolation—It is an ill wind that blows nobody good. Everybody must live, and what would become of the glaziers if panes of glass were never broken?Now, this form of condolence contains an entire theory, which it will be well to show up in this simple case, seeing that it is precisely the same as that which, unhappily, regulates the greater part of our economical institutions. Suppose it cost six francs to repair the damage, and you say that the accident brings six francs to the glaziers trade—that it encourages that trade to the amount of six francs—I grant it; I have not a word to say against it; you reason justly. The glazier comes, performs his task, receives his six francs, rubs his hands, and, in his heart, blesses the careless child. All this is that which is seen. But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to break windows, that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, Stop there! Your theory is confined to that which is seen; it takes no account of that which is not seen. It is not seen that as our shopkeeper has spent six francs upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his six francs in some way, which this accident has prevented. In this parable, the thirty people telling the shopkeeper that the broken window is a good thing because it keeps the glazier employed are the equivalent of the journalists and politicians who say that natural disasters are actually an economic boon. Bastiats point, on the other hand, is that the economic activity generated for the glazier is only half of the picture, and its, therefore, a mistake to look at the benefit to the glazier in isolation. Instead, a proper analysis considers both the fact that the glaziers business is helped and the fact that the money used to pay the glazier is then not available for some other business activity, whether it be a purchase of a suit, some books, etc. Bastiats point, in a way, is about opportunity cost- unless resources are idle, they must be shifted away from one activity in order to be shifted toward another. One can even extend Bastiats logic to question how much of a net benefit the glazier receives in this scenario. If the glaziers time and energy are finite, then he is likely shifting his resources away from other jobs or pleasurable activities in order to repair the shopkeepers window. The glaziers net benefit is presumably still positive since he chose to fix the window rather than carry on with his other activities, but his well-being is not likely to increase by the full amount that he is paid by the shopkeeper. (Similarly, the suit maker and book sellers resources wont necessarily sit idle, but they will still suffer a loss.) It is quite possible, then, that the economic activity following from the broken window merely represents a somewhat artificial shift from one industry to another rather than an overall increase. Add into that calculation the fact that a perfectly good window got broken, and it becomes clear that its only under very specific circumstances that the broken window could be good for the economy as a whole. So why do people insist on trying to make such a seemingly misguided argument regarding destruction and production? One potential explanation is that they believe that there are resources that are idle in the economy- i.e. that the shopkeeper was hoarding cash under his mattress before the window was broken rather than buying the suit or the books or whatever. While it is true, under these circumstances, that breaking the window would increase production in the short-term, it is a mistake to assume without sufficient evidence that these conditions hold. Furthermore, it would always be still better to convince the shopkeeper to spend his money on something of value without resorting to destroying his property. Interestingly enough, the possibility that a broken window could increase short-run production highlights a secondary point that Bastiat was trying to make with his parable, namely that there is an important distinction between production and wealth. To illustrate this contrast, imagine the world where everything that people want to consume is already in abundant supply- new production would be zero, but its doubtful that anyone would be complaining. On the other hand, a society with no existing capital would likely be working feverishly to make stuff but wouldnt be very happy about it. (Perhaps Bastiat should have written another parable about a guy who says The bad news is that my house got destroyed. The good news is that I now have a job making houses.) In summary, even if breaking the window were to increase production in the short run, the act cannot maximize true economic well-being in the long run simply because it will always be better to not break the window and spend resources making valuable new stuff than it is to break the window and spend those same resources replacing something that already existed.

Computer Programming And Informational Technology

â€Å"One of the best sources for career information is the U.S. Department of Labor’s Bureau of Labor Statistics (BLS). According to BLS data, 74 percent of new STEM (science, technology, engineering and math) jobs through 2022 will be in computing† (Hoffman). This information shows that computer science is a major field, and that it is growing rapidly; However, there are not enough people to fill the roles in this field. So, in order to understand how computers work and what career paths are associated with them, It’s important to figure out how the hardware works, software works, and then see what career paths there are in computer programming and informational technology in order to educate people on what they need to learn for this career.†¦show more content†¦Then information is then sent to the CPU, which â€Å"has three basic capabilities: to perform basic mathematical operations, move data from one memory location to another, make decisions to jump from one instruction to another† (Laue). Next, the character is sent to a RAM chip, â€Å"an integrated circuit made of millions of pairs of transistors and capacitors that are linked to create a memory cell. These capacitors and transistors are arranged as a grid, with the columns connected by bitlines and the rows connected by wordlines. The combination of bitlines and wordlines defines an address for each switch and capacitor. This also accounts for why this type of memory is called random access: you can access any memory cell directly if you know its address† (Laue). Finally, the letter is sent to the output device, which includes monitors, printers, modems, ethernet cards, and speakers. Modems are the hardware device through which most of us were introduced to the Internet. The computer operates exclusively with Is and Os, with a digital code. By contrast, phone lines work with an analogue signal, an electronic current with variable frequency and strength. It is the modem’s job to demodulate data from a phone line, to convert the wave to a series of Is and Os, and to modulate the data generated by the computer, to convert the Is and Os to a continuous wave (Laue). So, the hardware of a computer works by receiving an input from a keyboard, sending it to the motherboard’s

American Idol Case Essay Example For Students

American Idol Case Essay Case 2. 1 American Idol: A Big Hit for Marketing Research? 1. What steps of the six-step marketing research process are evident in this case? According to Case 2. 1. The steps are: a) Problem Definition. The definition of the problem presented when Marcello Litzenberger analyze that professionals resistance to pursing marketing research. b) Only Mentioned Development of an Approach to the Problem. This step occurs when they identify the information that they needed to make their objective (demonstrating the usefulness of marketing research) or theoretical framework come true, and make hypotheses. ) Research Design Formulation. This next step is acquired when the characters decided to â€Å"what to do† to obtain the information, they analyze the research design for conducting their marketing research. d) Fieldwork or Data Collection. This step is seen when Lizenberger and Marcello decide to went to Research Corporation to make the Data Collection, to ask the questions of t he analysis. e) Data Preparation and Analysis. When they had the data, they planed to make an analysis to reflected on the futures courses of action they could take. ) Report Preparation and Presentation. They could drop the whole idea of demonstrating the usefulness of marketing research. 2. What is the role of marketing research in marketing decision making suggested by this case? The role of marketing research was to chow to all the professional that is a tool that includes consulting skills, technical proficiency and sound management, to provide information that this professional can use to improve their companies, to identify marketing problems and solution problems that is (suggested in the case 2. ). They have an idea to know the reason that people see the chow American Idol and improve a decision to raise the spectators that’s see this program. 3. Define the management decision problem confronting Melissa Marcello and Julie Lizenberger and a corresponding marketing research problem and show the linkages between the two. Marcello knows that marketing research can ive an enterprises a decisions that reduce the risk and Lizenberger want to improve a decision making a marketing research, that’s why the problem starts to make that professional trust in marketing studies (what still needs to be now about the viewers and voters and voters for contestants of popular TV show American Idol? ), they need to take a risk that they don’t need to take, but the revenue (decision) is bigger than the risk, they can make a change in all professional workers believe in marketing research. 4. If Marcello and Lizenberger decide to conduct this study, what research they adopt? Relate different phrases of the research design to specify aspects of marketing research problems. They need to make a qualitative research; they can improve a decision to contract a research company to obtain the data collection, with the information they can design a framework for conduct the study (how they are going to keep the analysis). They determine possible answers to the research questions (what spectator says), this study need to test the hypothesis (American Idol Case), to provide the information needed for the conclusion (share with professionals that’s marketing research is a good idea). The design should guide the consideration, including the benefits and cost of this study. 5. What kind of secondary and syndicated data would be helpful in addressing the questions raised by Marcello and Lizenberger? What is the role-played by such data? They should recollect the data by Internet survey, I think is a good idea to buy the database of people that voted in the last American Idol, and send to all people the questions that make an evaluation of the field force for help to complete the objective.

One Of The Most Memorable And Meaningful Socratic Quotes Essays

One of the most memorable and meaningful Socratic quotes applies well when in context of Sophocles' Theban Trilogy. The unexamined life is not worth living, proclaims Socrates. He could have meant many things by this statement, and in relation to the play, the meaning is found to be even more complex. Indeed, the situation of Oedipus, king of Thebes, the truth of this statement is in question. Would Oedipus have been better off if he was blind to the knowledge of his birthing and the fate which was foretold to someday befall him? Truly though, his life would have been a far better and easier path had he never known about his true origins. His life in Corinth would have been long and prosperous, and Thebes would have lived on under King Laius. In fact, everyone would have been better off in the long run if Oedipus had not ventured out beyond the walls of Corinth. So is it worth living an examined life? Socrates had made this statement long after the creation of the Theban Trilogy. In the context of his own time, this was meant to imply that life must be examined and reflected upon, known and discovered by each individual philosopher to better enrich life for all. Yet in terms of Sophoclean drama, specifically Oedipus Rex, this was meant in a vastly different way. The unexamined life was one that was in the dark, unknown as to what fate lied beyond every turn and irony of living. Oedipus, up to the point in which he heard the comment in the tavern in Corinth, lived an unexamined life. To Socrates, he was an unfulfilled man, one who deserved to know more, one who not complete. However, in a much less metaphysical sense, Oedipus' life was complete, in that he had all that he needed, and was living a happy and fruitful life. As the drama progresses, he finds out more and more, learning exactly what the implications of his birth was, he suffers the fate for examining his life. So what Socrates had meant, that the life which was not rich with self exploration and reflection was not worth living, was indeed different than its application in terms of Oedipus, who's life was unexamined, yet complete. The question arises, what would life have been like, if Oedipus had not discovered his true origins? If he had stayed in Corinth, would this have ever happened? We find that indeed, we would have had no story, if not for that lone comment of a drunkard which sparked the fire of rebellion in the young prince Oedipus. He ventured out to Delphi, to pry knowledge of his background out of it, and to discover if this was indeed the truth, despite the fact that his adopted parents of Corinth had assured him of it falseness. Oedipus leaves Corinth, fulfilling the Socratic idea of the unexamined life. However, we must evaluate the eventual consequences of his actions and the implications which they possess. What becomes of his fateful journey out of Corinth leads to the downfall of an entire city and family line. If he had not murdered King Laius, the Sphinx would have never descended upon Thebes, he would have never fulfilled the prophecy, and all would have lived on in a relative peace and tranquillity. Once examining these aspects of the relationship between the quote and Oedipus Rex, we can come to a final examination of its implications. The question which was addressed, that of the value of the examined life, can be answered. Indeed, if Oedipus had not ventured beyond the protective walls of his adopted home, would anything such as what occurred in the play ever have transpired? If Oedipus had not pursued that answers to the mysteries that plagued him, despite the pleading warnings of I?casta, in fact his life would have been contented and happy. Instead, he follows the Socratic method of exploration and discovery, and proceeds down the path of pain and distraught. Was, after it was over, all worth it? We find that no, it was not. Being content and suited with what he knew of himself would have saved Oedipus and his children/siblings much agony. However, in the typical Greek tragedy, we must see his fall from grace through, which is indeed what happens. In the bliss of ignorance, much pain and difficulty is averted. For what worries does the ignorant man have? In the case of Oedipus, ignorance would have suited him fine. The Socratic quote the unexamined life is not worth living certainly doesn't hold true in the case of