Tuesday, October 30, 2012

Broken Window Fallacy - Does Hurricane Sandy spur the economy?

Hurricane Sandy - Does it help our economy to rebuild? The Broken window fallacy is a short video explaining how the press spins the Hurricane into a stimulus for the economy. Hurricane Sandy isn't a benefit to the economy, it just keeps the real demand for goods and services tight as income shifts to cover damage. We could see oil initially go down as the east coast was effectively turned off for two days and the markets closed. Gold, or the Panic commodity will also see some price relief as sellers will try and keep profits and the futures market will probably show some price pressure to sell as this is not good for business in the states.

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2 comments:

  1. Hurricane sandy provided useful service to those who's jobs are services such as installation of windows, or tree removers.

    -Solomon Berkovitch
    Storefront Glass Installation Brooklyn

    ReplyDelete
  2. Hello, Firstly thanks to post such a good article. I found it useful because it cleared my confusions about topic what you written.
    Day Trading Tips | Gold Tips

    ReplyDelete

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