Broken Windows spending=living wage

1. bhudson (4,174) Says:
   September 1st, 2013 at 8:48 am
   And just wait for them to justify the additional cost of the living wage using what has been identified as the Broken Windows fallacy – the idea that its all good because that extra expense will return so much more good as the workers will spend it and the Keynesian multiplier will take over, but which conveniently ignores the fact that the money used to fund the higher wage would otherwise have been used elsewhere in the economy in the form of expenditure or savings; it creates no new money and no greater economic outcome.
   An intellectualized version of alchemy, built on a foundation of quicksand.
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2. “Once the monkeys learn they can vote themselves bananas, they’ll never climb another tree.” Robert Heinlein
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4. It does not take a sensible and gifted economist like Oliver Hartwich to work out that if things progress in the same path through 2017, then by 2017 NZ will be near the top of the OECD income nations – provided, of course J. Key and W. English keep their heads, sell some more of the infrastructure assets, and don’t spend everything.
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