Please explain the broken window fallacy and how it can be used to explain the hidden costs of price fixing, minimum wages, and inflation.
I think it is a good idea to remind people to look beyond the impact of those immediately affected by a specific government policy. It is easy to see employment in an industry that is protected by tariffs. However, it is not easy to see how that impacts job creation in other industries, government revenues, wages, productivity, and standards of living (for instance).
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Justin Matz
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Anonymous
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Please enlighten me on this!