So I'm driving into work on the Ike this am, and what do I hear on the radio? A little Bastiat for my early morning commute. The article discusses the broken window fallacy as it relates to cleanup from the hurricane. It is worth your 4 minutes to listen and put your economic thinking hat on.
http://www.npr.org/2011/08/31/140079524/will-hurricane-cleanup-help-stimulate-the-economy
The article also brings up a concept we will be covering throughout the course called "deadweight loss." This is a very important concept in economics and one you should become familar with early on. It is a general loss of welfare to society resulting from some sort of market failure (transactions not occurring because of market intervention).
Happy listening my little economists!!
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