The Broken Window
Inspired by economists in Britain, Frédéric Bastiat explained to his own Government why their initiatives to boost the economy so often fail.
1845
Queen Victoria 1837-1901
Inspired by economists in Britain, Frédéric Bastiat explained to his own Government why their initiatives to boost the economy so often fail.
1845
Queen Victoria 1837-1901
So long as it makes work for the working man to do, almost any initiative will have its champions. A superfluous rail upgrade, a local government vanity project, even burglary or a war, we are reconciled to them on the grounds that ultimately they create jobs and get the economy moving. Yet as Frédéric Bastiat explained back in 1850, the thought may be comforting but it isn’t really true.
HAVE you ever witnessed the anger of the good shopkeeper, James B., when his careless son happened to break a square of glass? 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 glazier’s 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.