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Broken Window Theory

Broken Window Theory

Discuss Broken Window Theory within the HOT Debates - The Big Fight forums, part of the Management Students Voices ( MBA,BMS,MMS,BMM,BBA) category; This is an old classic joke, referred to as the Broken Window Theory of Economics. For those of you who ...

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Broken Window Theory
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Dimpy Handa
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Broken Window Theory - April 3rd, 2011

This is an old classic joke, referred to as the Broken Window Theory of Economics. For those of you who know this one, please disregard this thread, but their are some who may not be familiar with this old time classic.

A hobo dressed up in a paramilitary uniform walks from house to house with stick-in-hand breaking windows.

An irate homeowner catches him and shouts "Hey, what in the world do you think you are doing!"

The hobo replies, "Stimulating the economy."

"By breaking my windows????"

"Of course. I was able to get this job breaking windows for the government right after it created the Department of Homeland Window Breaking. The government is creating jobs."

"But I will have to pay for this window!"

"You aren't looking at the big picture. The window repairman gets work he wouldn't have gotten before, not to mention all the jobs created by training the unemployed to be window repairmen which will be desperately needed after I finish breaking all these windows. Jobs are created, the economy is stimulated, and you get new windows. Everybody wins!

"But I don't need new windows!"

"You do now."

"That's only because you broke them!"

"Just think how bad the economy would be if I didn't break them."
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Swati Rao
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Re: Broken Window Theory - May 8th, 2011

Such situation will only create superficial creation of job opportunities.
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