tag:blogger.com,1999:blog-11906042.post110312750518651833..comments2024-03-29T10:51:27.752+13:00Comments on Not PC: Uni research recognises Bastiat’s ‘broken window;messagePeter Cresswellhttp://www.blogger.com/profile/10699845031503699181noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-11906042.post-38409047403231753482013-07-17T22:12:58.175+12:002013-07-17T22:12:58.175+12:00Yeah and Bernard Dumb Hickey predicted that the ea...Yeah and Bernard <i>Dumb</i> Hickey predicted that the earthquake would bring economic prosperity to Canterbury. Mr Hickey is a smart economist.Wine Drinkernoreply@blogger.comtag:blogger.com,1999:blog-11906042.post-67109994572429948222013-07-16T13:32:00.016+12:002013-07-16T13:32:00.016+12:00Gregster - preaching to the converted when it come...Gregster - preaching to the converted when it comes to Earth's balance sheet. Just making the point that it can accrue benefits on a more localised level - and how far that benefit can spread is now wider than it would have been in Bastiat's day.<br /><br />Does the rebuild lead to economic spinoffs for engineers in Chch? Definitely. Is there a spinoff for most business in Chch that have survived? Probably. With re-insurance funds coming from overseas does it have a benefit for the NZ economy generally? No according this article, but conceivable that it could. Does it lead to a net gain for the world's economy? Certainly not.MarkThttps://www.blogger.com/profile/06199883270652041621noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-24869424377744678702013-07-16T11:13:17.421+12:002013-07-16T11:13:17.421+12:00Mark, what about the cost of insurance and its upw...Mark, what about the cost of insurance and its upward adjustment thereafter. And the payout from overseas means those funds are removed from productive investment somewhere else. It is beneficial for profits to accrue anywhere. Think of Earth's balance sheet. The fewer disasters the better.gregsterhttps://www.blogger.com/profile/04786701115887458801noreply@blogger.comtag:blogger.com,1999:blog-11906042.post-20488556515276246632013-07-16T10:55:38.894+12:002013-07-16T10:55:38.894+12:00Agree of course with the simple logic of the '...Agree of course with the simple logic of the 'broken window' message - but there is one sense in which a disaster can have positive economic spinoffs for the general population. This is when the money to replace (or in most cases improve on) what was destroyed comes from outside. In the case of Chch most of the insurance money is coming for overseas re-insurers - meaning there will be definite economic spinoffs for Chch at least, if not NZ as a whole.MarkThttps://www.blogger.com/profile/06199883270652041621noreply@blogger.com