In the new movie Man of Steel, Superman engages in a fight with his fellow aliens from Krypton that causes significant damage to Metropolis. Disaster expert Charles Watson estimates the costs of the physical damage done to the city to be about $2 trillion. To put that in context, 9/11’s physical damage cost $55 billion, with a further economic impact of $123 billion.
What would be the impact of Superman’s fight on the economy? According to some liberal economists, it would lead to a economic boom. In defending President Obama’s stimulus proposal in 2011, Paul Krugman proposed a peculiar solution for economic recovery that mimics the one in Man of Steel: prepare for an alien invasion.
“If we discovered that, you know, space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months,” he declared, arguing in favor of the president’s stimulus package. “And then if we discovered, oops, we made a mistake, there aren’t any aliens, we’d be better [off].”
Man of Steel must be Krugman’s favorite movie: you not only get an alien invasion (Kal-El, General Zod and his soldiers) but you get alien destruction on a massive scale. Just think of all the economic benefit Metropolis gained!