Monday, April 11, 2011

Disaster is Disaster

I've seen opinion pieces talking about how nice it is that so much destruction has occurred in Japan and elsewhere; now we can all get rich helping them clean up and repair!

Walter Williams rightly calls that Economic Lunacy. Nope, the people in Japan are poorer now, and as a result, they are going to have to buy replacements for their homes, cars, clothes, and infrastructure, instead of producing other useful goods. More goods means more wealth and lower prices.

Another example of economic lunacy, by the way, is complaints about the trade deficit. The trade deficit is balanced, CENT FOR CENT, with a foreign investment SURPLUS. It means that foreigners are putting capital into our companies. Furthermore, it means that we are richer than the people we're importing from. Here's a sane explanation:

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