Class 15: The Broken Window

Today, Mr Rizzo introduces us the idea of the broken window fallacy. One of the very interesting point about this lecture is that I realize that job is not actually a profit but it is a form of cost because the money given out to create new jobs can be used as other even more better thing. As a conclusion, destruction can't actually bring any good because it uses up the opportunity cost and resources which is not seen by now.