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I wonder if entertainment could be analogous to destruction? Like, do Taylor Swift concerts actually generate useful economic activity, or is it a broken window? Presumably those concert goers would have spent that money on something more useful..
Broken windows can be a net benefit, for example the london neighborhoods hit by bombs during world war 2 are now far denser and more economically active. The idea that broken windows are always negative is as simplistic as the idea that they are always positive.
I'd wager that the vast majority of Londoners living during the war did not see a net benefit from their neighborhoods being destroyed.
Whether or not future generations reaped a benefit at their expense is a utilitarian exercise for your imagination, but one example doesn't invalidate the economic principle (destroying resources is usually harmful, not helpful).
I wonder if entertainment could be analogous to destruction? Like, do Taylor Swift concerts actually generate useful economic activity, or is it a broken window? Presumably those concert goers would have spent that money on something more useful..
But, it's also obvious that the destruction of value can sometimes lead to increased production of value.
Destabilizing a non-optimal state of equilibrium through a destructive act can often result in a much more optimal state of equilibrium.
In the canonical example, imagine that the shop is badly kept — that the owner isn't really invested in maintaining it or running it well.
His child breaks the window, and he fixes it, and suddenly in contrast with the new pane he sees how shoddy his shop is and decides to get his act together.
I think it's clear that the destruction of value is simply the destruction of value — the world is a poorer place afterwards. But, it's also obvious that the destruction of value can sometimes lead to increased production of value. Destabilizing a non-optimal state of equilibrium through a destructive act can often result in a much more optimal state of equilibrium. In the canonical example, imagine that the shop is…
Earlier quoted context omitted.
On the whole it's negative. The more it's done the poorer we all become. And any indirect benefit (preventing infidelity or gambling through distraction/destruction) is so unreliable it's not a functional framework for progress.
The point of scientific inquiry is to make "claims" into "facts" by finding "evidence". We have a "claim", that breaking windows (always) "on the whole is negative". However, there is no "evidence" to be found. Thus, it is not a "fact". Modern societies are very complicated to just referring to "common sense" is not enough.
I think it's clear that the destruction of value is simply the destruction of value — the world is a poorer place afterwards. But, it's also obvious that the destruction of value can sometimes lead to increased production of value. Destabilizing a non-optimal state of equilibrium through a destructive act can often result in a much more optimal state of equilibrium. In the canonical example, imagine that the shop is…
Another example: imagine a large company is exploiting a population in a country, paying poor wages, taking natural resources and avoiding taxes. A broken window is an opportunity for the local window installers to benefit from the company. Globally it is bad for the economy, but good locally.
It might even be much better for the world economy, long-term.