Broken Window Fallacy

Ah, but the 'unseen' and 'unintended consequences' is too abstract.

Better to emote.

And cover those emotions with nonsensical jargon like "we're investing in public works."

I'm not suggesting public works isn't beneficial. It is. Up to a point. But when it becomes a means to end especially in terms of "growing an economy" or to improve employment, then it's a little more problematic.

Another way to look at the BWF is to recognize that whatever dollar the baker (in the example) had and his intentions (to buy a suit or save it or whatever else you care to add), is now LOST. It can't come back. Instead, he was to use a dollar to fix a window he already had to make him whole again. It's like when protests bring an economy to a halt through violence and breaking windows. How is that remotely beneficial to the local shops? It's not. It's destructive not only in terms of repairing (and never mind the negative impact this has on insurance premiums) but in sales as well. Lost sales for a given period are just that, LOST. As in never to come back. Which is why it's very possible the length or depth of a protest can literally put someone out of business.

To think 'war' or 'crime' is 'actually good' for the economy is foolish drivel. 

This whole idea of spending more (which only means more taxes and inflation) to pull a country out of a recession is bizarre (to say nothing of illogical).

Who takes from their their line of credit to pay their VISA and considers it an 'investment' because the money is being used to pay their student loan?

It's still debt since you have to repay it. If you find a great job, great. Now you have to pay it down to control interest costs. But what happens if things don't pan out? Do you keep borrowing? You may find yourself in a position where you're only able to cover the interest on your loans while never chipping away at the principal. THIS is where people begin to feel trapped.

It's a vicious cycle.

Flips puck at SE.