Larry Summers: Earthquake May Boost Japanese Economy

[Zatch]

Tsunami an economic disaster? Not necessarily

HONOLULU (HawaiiNewsNow) - The natural disaster of a tsunami could actually provide a temporary boost to the global economy.

Larry Summers, former director of President Obama's economic council and a former head of the World Bank, said rebuilding could temporarily boost the Japanese economy.

Summers suggested this in an interview Friday on CNBC. He added that the global economy is more resilient than most people think.

In Hawaii, disruptive weather events are good for some businesses but bad for others.

Stores that sell generators and hardware supplies experience a run on these items when a tsunami or bad weather approach; other retailers find their usual sales interrupted as people focus on evacuating and stockpiling essential supplies instead of their usual shopping.

HawaiiNewsNow correspondent Tannya Joaquin found three gas stations that had run out of fuel more than an hour before the first harbor wave was to have arrived.

The tsunami is an expense item for hotels, which have extensive plans in place to take care of guests' needs, usually through "vertical evacuation," escorting guests at least three stories up. Much of the expense comes from bringing in extra people to take care of guests.

Copyright 2010 by HawaiiNewsNow. All rights reserved.

http://www.hawaiinewsnow.com/Global/story.asp?S=14232017

[ClayTrainor]

Broken Window fallacy taken to a new extreme...

[Matt Collins]

Moron!



http://www.youtube.com/watch?v=1hgWq1R-G74

http://www.youtube.com/watch?v=gG3AKoL0vEs

http://www.youtube.com/watch?v=UPmo2e-bAMQ

http://www.youtube.com/watch?v=SQFhm4s_-Pk

[Matt Collins]

I'm definitely not an expert, but kicking some of these ideas around today I actually think this could push us into a global depression.

Japan's economy was on the brink. Inflation and debt. Their markets are going to hell over this. Could it cause a ripple effect throughout other markets? :confused:

[HOLLYWOOD]

Did it say "former director of President Obama's economic counci" or "former director of President Obama's propaganda council"

It amazes me the American sheeple actually believe this bullshit just because of a D or R next to their name/party.

[ARealConservative]

Broken Window fallacy taken to a new extreme...

massive government spending will create a temporary spike in GDP, so this is a broken window fallacy that will create the temporary appearance of boosting the economy.

[Anti Federalist]

massive government spending will create a temporary spike in GDP, so this is a broken window fallacy that will create the temporary appearance of boosting the economy.

I suppose if it is all spending on borrowed/printed money.

If not, it's just sucking money from the private sector that could be put to better use.

[Vessol]

Didn't someone from the administration say the same thing about Haiti?:mad:

[Sola_Fide]

Broken window fallacy. Next.

[dbill27]

Paul Krugman said after 9/11 that it could actually stimulate the economy. When I first saw pictures on tv my first thought was that this could possible destroy the world's economy. Certainly Japan is in deep shit, they were already badly in debt, they will be reduced to printing lots of money. This won't turn out good, of course, the U.S will probably give them all sorts of money that we don't have either.

[Brian4Liberty]

Moron!


To a parasite, anything that motivates the host to work harder is a good thing. Summers is an intestinal worm.

[Austrian Econ Disciple]

If it is such a great thing to destroy property, then can I go destroy Larry Summers house? Please?

[jclay2]

All right people go get yourself a good lighter and gasoline. Set your house on fire and tell us how much it has improved your personal economy.

[Matt Collins]

http://www.americanexpress-bashed.com/images/shovelshit.jpg

[Fox McCloud]

What an asshole. I've been waiting all day for someone to make this argument, but I expected it from Krugman, given that he said that 9/11 had a silver economic lining.

The best way to destroy the "broken window boosts the economy" mantra is to reduce it to its most basic levels.

Person 1 and person 2 are stranded on an island; they both have nice shelters to live in and an ample supply of food---a storm comes and it destroy person 1's shelter (but not 2); person 1 now has to consume all his food and incite the help of person 2 (who also has to dip into his store of food) to rebuild person 1's shelter---will it boost "production" of the food source and the materials the shelter was made out of? Yes it will, but that's irrelevant....is society wealthier for it? I's say no; they could have been spending those extra resources on a larger shelter, more food, or better capital goods to get even more food.

I don't know why that fallacy persists to this day; when you really break it down, it truly becomes absurd.

[hugolp]

I don't know why that fallacy persists to this day; when you really break it down, it truly becomes absurd.

Keynesians promote all kind of fallacies disregarding any logic. Why stop at this one?

[prmd142]

If it is such a great thing to destroy property, then can I go destroy Larry Summers house? Please?

+1776

[Brian4Liberty]

I don't know why that fallacy persists to this day; when you really break it down, it truly becomes absurd.

Because it also serves as a defense of war (i.e. they claim war is good for the economy).

[Agorism]

Larry Summers, former director of President Obama's economic council and a former head of the World Bank‘, says that The Earthquake and Tsunami Will Stimulate the Economy.


http://www.hawaiinewsnow.com/Global/story.asp?S=14232017

[Brian4Liberty]

Dup thread:

http://www.ronpaulforums.com/showthread.php?283265-Larry-Summers-Earthquake-May-Boost-Japanese-Economy

[Brian4Liberty]

bump

[Zippyjuan]

It is benificial if you are in the building and cleanup trades. If your home and/or business was destroyed by the quake how are you going to be able to afford to start again? Insurance companies will be facing massive losses too. That will help dry up some of the money needed to rebuild.

[Agorism]

Well government spending is in the equation for GDP and GNP at least in the U.S.

If the government increases spending by a trillion, that means GDP just increased by a trillion.



GDP = private consumption + gross investment + government spending + (exports − imports), or


Tax cuts don't figure into it the same why because the multiplier modifies it. Any money that is given in tax cuts that goes towards savings does not stimulate the economy at all. That's why tax cuts in the form of 100 dollar hand out work so well. That money isn't saved it's just spent immediately "boosting the economy."

You can't win citing government figures.

[ronpaulhawaii]

Broken Window fallacy taken to a new extreme...

Someone should make a wiki page for the Keynesian's new low, "The Broken World Fallacy" (paraphrased from FB)

[ARealConservative]

I suppose if it is all spending on borrowed/printed money.

If not, it's just sucking money from the private sector that could be put to better use.

I'm not up on Japan's debt status, but I assume a good deal of money is going to come in the form of foreign aid from various central banks.

so in that regard, Japan's economy would get a boost as this broken window fallacy amounts to the windows being replaced by other nations debt burden.

[HOLLYWOOD]

Someone should make a wiki page for the Keynesian's new low, "The Broken World Fallacy" (paraphrased from FB)
Broken Vase Classic...


http://movieclips.com/WZyep-trading-places-movie-you-want-me-to-break-something-else/


You Want Me to Break Something Else? (http://movieclips.com/WZyep-trading-places-movie-you-want-me-to-break-something-else/)
Trading Places (http://movieclips.com/k9TEa-trading-places-movie-videos/) at MOVIECLIPS.com (http://movieclips.com/)