Earlier quoted context omitted.
s/window/wealth holder's window/ It is often argued that the 'breaking windows' scenario is a fallacy because the capital redirected to fix the window would be used for something more productive, which is only true assuming a company or individual is utilizing this excess capital. So, you have to break windows where people are holding capital, ie: the owner of the window is wealthy. If you break a window at the local…
Yours is a common misconception of the Broken Window Fallacy. Most people think the fallacy is just a statement about destroying things in order to create jobs. While this is true, the deeper meaning of the fallacy is that every action has a consequence, both negative and positive. But the problem most economists and politicians have is that they only look upon the easily measured and obvious outcome (the work for th…
As you say, if they weren't guaranteed to hoard the money then the window would cancel out a suit, or some other economic activity.