Thursday, 7 April 2011

Creative destruction: the impact of earthquakes

How can an earthquake be good for a country?  If it is a developed country, it seems that reconstruction can offer benefits through improved infrastructure and upgraded technology.  Have a look at this article, also from the New Yorker (28th March 2011).  I like the 'broken windows' fallacy that is given from Frederic Bastiat (19th century economist): the idea that breaking windows is economically useful, becuase it makes work for glaziers!

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