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dpatru | 2 years ago

President Obama’s Cash for Clunkers program [1] where used cars in good condition were destroyed to increase sales of new cars seems to have been based on the broken window fallacy.

[1] https://en.m.wikipedia.org/wiki/Car_Allowance_Rebate_System

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trainyperson|2 years ago

Although in this scenario, there’s (theoretically) an externalized benefit of improved fuel efficiency. So it’s possible that it is a net positive for society?