Not PC has covered the many occurrences of the broken window fallacy since the earthquake in Christchurch. For an entertaining twenty minutes of laughing at mainstream, Keynesian-regurgitating idiots check out the updates along the bottom at Not PC.

The prize so far goes has to go to the Treasury–in conjunction with ANZ bank–in trying to predict the impact the earthquake would have on GDP.

The Treasury and ANZ Bank had a stab yesterday at quantifying the impact of the Canterbury earthquake on gross domestic product.

Both concluded that while the near-term impact is unambiguously negative, the recovery work needed would boost GDP over a longer time frame.

I admit, it can be difficult to see this preposterous notion for what it is. I mean, the clean up effort does take care of employment, and it does produce something. But remember, what is being produced was once standing, it is merely being replaced. And the employment that goes into the reconstruction is employment that is now not working towards producing something else.

The explication made by government and bank officials that the earthquake will improve GDP is utter nonsense. If it weren’t, then we would cheer an even bigger quake that levels all of Christchurch, Auckland, Wellington and Nelson. Think of all the cleanup required! What a great boost to the economy that would provide!