The Broken Window Fallacy
Also known as: Parable of the Broken Window, Glazier's Fallacy, Vitre Cassée
Formulated by
Frédéric Bastiat
(1850)
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From
That Which Is Seen, and That Which Is Not Seen
Definition
A logical error in economic reasoning first described by Frédéric Bastiat in his 1850 essay That Which Is Seen, and That Which Is Not Seen. The parable tells of a shopkeeper whose window is broken by a boy. Bystanders console him by arguing that the broken window is actually good for the economy because it gives work to the glazier, who then spends that money elsewhere, creating a chain of economic activity. The fallacy lies in ignoring what is not seen: the shopkeeper would have spent that money on something else (a new suit, books, or tools) that would have also created economic activity while leaving him with both an intact window and a new good. Destruction does not create net wealth; it merely diverts resources from productive uses to restoration. This fallacy is routinely invoked to justify wars, natural disasters, and government make-work programs as economically beneficial.