AI reviewed · sources pending. Book associations have not been verified.

Broken-window fallacy

Concept

Repair spending alone does not establish that destruction increased wealth.

Explanation or usage

Replacing a damaged asset uses resources that could have produced something else. The repair transaction is visible, while the forgone alternative may be harder to see. Net assessment must count the lost asset and compare with a credible no-damage baseline.

Common misunderstandings

A payment to a repairer proves destruction created a net benefit.

In Economics in One Lesson

General context reviewed · book attribution and sources pending

Apply the argument to an original example of accidental damage, without treating every repair as economically pointless.

Linked books