This past Sunday, University of Maryland Professor Peter Morici suggested that the damage from hurricane Irene is akin to a mini-economic stimulus, exposing the perverse “logic” that is Keynesian economics and reminding us all of the crackpot economic policies under which we currently exist.
Among Morici’s claims, he cited the following logic as why we should all be praying for more natural disasters, riots, looting, and other ills that befall society (perhaps some more Fascist presidential administrations?):
“…When government authorities facilitate rebuilding quickly and effectively, the process of economic renewal can leave communities better off than before.”
A community about to undergo an economic boom, according to Morici’s logic
In an open letter directed to the so-called (read: Keynesian) academic Morici, George Mason Economist Don Boudreaux exposes the idiocy that underlies Morici’s reasoning (and, we might add, the same reasoning that progressive Leftists continues to employ)–essentially, as Boudreaux writes, that “people whose assets are destroyed will be made richer – because these destroyed assets are replaced with ones that are newer and more productive.”
To further underscore his point, Boudreaux suggests the following service to Morici:
I hereby offer my services to you, at a modest wage, to destroy your house and your car. Act now, and I’ll throw in at no extra charge destruction of all of your clothing, furniture, computer hardware and software, and large and small household appliances.
Because, I’m sure, almost all of these things that I’ll destroy for you are more than a few days old (and, hence, are hampered by wear and tear), you’ll be obliged to replace them with newer versions that are “more economically useful and productive.” You will, by your own logic, be made richer.
Just send me a note with some times that are good for you for me to come by with sledge hammers and blowtorches. Given the short distance between Fairfax and College Park, I can be at your place pronto.
Oh, as an extra bonus, I promise not to clean up the mess! That way, there’ll be more jobs created for clean-up crews in your neighborhood.
The claims by “economists” suggest as Morici–and those in Obama’s cabinet–are laughable, but they are also the backbone of the economic policies under which our country is currently governed. They are taught in our nation’s business schools and they are the basis for our current tax code. Milton Friedman–and Adam Smith–could never have dreamed that universities would be heralding the destruction of our nation’s homes and businesses. Welcome to the Brave New World.