We continue with Paul Krugman’s suggestion of a fake threat of aliens invading to stimulate a depressed economy. We look at a blog post he had written for the New York Times where he revealed his inspiration for the blessings of fear and destruction: World War II.
Unfortunately, even many conservatives and Christians think like Krugman that war spending helps an economy grow or get out of a slump. We look at the parable of a broken window from Frederic Bastiat to see that destruction really is destruction.
Paul Krugman, “Terrorists and Aliens,” The New York Times, November 17, 2015
John Maynard Keynes, “The Propensity to Consume,” Chapter 10 of The General Theory of Employment, Interest and Money.
Robert Higgs, “The Myth of U.S. Prosperity during World War II.”