Re: Broken Windows – University Funding Edition

As Kishore Jayabalan noted yesterday, the fallacy of “broken windows” is, unfortunately, ubiquitous in discussions of public finance and macroeconomics. Though we are told that government spending and public works have a stimulating effect on economic activity, rarely are the costs of such projects discussed. Continue Reading...

Rome’s Graffiti and Bastiat’s Broken Windows

Today’s Wall Street Journal has a nice piece about the problem of graffiti in Rome and the obstacles to cleaning it all up. While the graffiti are certainly an eyesore in an otherwise beautiful city, there is also great economic damage done, which leads to impoverished understandings of private property and general urban decay. Continue Reading...

Italy, competition and the problem of guilds

Last Saturday’s New York Times contains an entertaining, edifying but ultimately sad tale on what ails the Italian economy. Entitled “Is Italy Too Italian?“, the Global Business article seeks to explain why Italy often tops “the informal list of Nations That Worry Europe” economically. Continue Reading...