Frederic Bastiat's Insights on Economic Fallacies

Frederic Bastiat

19th-century economist known for economic journalism.

Legal Plunder

Taking property from one to give to another.

The State

Entity where individuals live at others' expense.

What is Seen

Immediate results of an economic action.

What is Not Seen

Long-term consequences of economic actions.

Broken Window Fallacy

Misconception that destruction benefits the economy.

Good Economist

Considers both visible and unseen economic effects.

Bad Economist

Focuses only on immediate visible effects.

Immediate Consequence

Effect appearing simultaneously with its cause.

Subsequent Effects

Consequences that emerge after the immediate effect.

Experience

Learning from direct consequences of actions.

Foresight

Anticipating future consequences of actions.

James Goodfellow

Hypothetical citizen illustrating economic principles.

Glazier

Worker repairing broken windows, benefiting from destruction.

Economic Activity

Actions that contribute to the economy's functioning.

Six Francs

Amount spent on window repair, illustrating opportunity cost.

Opportunity Cost

Value of the next best alternative foregone.

Encouragement to Industry

Stimulus provided to a sector from economic activity.

National Employment

Overall job availability within a country.

Sunk Costs

Costs that cannot be recovered once incurred.

Destruction vs. Creation

Debate on whether damage stimulates economic growth.

Economic Phenomena

Events impacting economic systems and behaviors.

Balance of Trade

Difference between a country's exports and imports.

Mock Petition

Satirical demand highlighting absurdity in economic arguments.

Construction Boom

Rapid increase in building activity post-disaster.

Hurricane Damage

Destruction leading to perceived economic opportunities.

Debauchery

Excessive indulgence leading to negative long-term effects.

Sloth

Laziness resulting in detrimental future consequences.

Prodigality

Wasteful spending leading to future hardships.

Shoemaker

Represents the discouraged producer due to destruction.

Destruction is Not Profitable

Economic loss occurs from unnecessary destruction.

Seen vs. Not Seen

Visible benefits versus hidden costs in economics.

Taxpayer's Burden

Taxpayers lose purchasing power due to taxes.

Government Spending

Taxpayer funds used without direct return.

Public Works

Government projects create jobs but hide losses.

Economic Fallacy

Misconception that destruction creates jobs.

Indirect Effects

Consequences of actions not immediately visible.

Job Creation Argument

Claim that public works generate employment.

Wages from Public Works

Workers earn wages but others lose jobs.

Cost of Public Projects

Taxpayer funds could have been used elsewhere.

Coin with Two Sides

Public projects have visible and hidden impacts.

Economic Utility

Value derived from services provided.

Government Bureaucracy

Costs associated with government offices.

Thief Analogy

Taxation without service likened to theft.

Employment Displacement

Public projects may reduce private sector jobs.

Prodigal Enterprises

Wasteful government spending justified by job creation.

Economic Exchange

Transaction where value is received for payment.

Tax Collector's Role

Receives funds without providing equivalent services.

Value of Destruction

Destruction leads to net economic loss.

Public vs. Private Sector

Differences in job creation and economic impact.

Government Official Spending

Taxpayer funds spent without direct benefit.

Economic Observation

Focus on both visible and hidden economic effects.

Labor Market Effects

Public works influence overall employment landscape.

Taxpayer's Opportunity Cost

Lost potential spending due to taxation.

Sophism

A deceptive argument that misleads reasoning.

Utility

Practical usefulness or benefit of a service.

Mumbo Jumbo

Nonsensical language used to obscure truth.

Philanthropic Work

Efforts aimed at promoting the welfare of others.

Co-operation

Working together for mutual benefit.

Taxation

Mandatory financial contribution to government.

Public Services

Services provided by the government for public benefit.

Private Services

Voluntary services exchanged between individuals.

Static Services

Services that remain unchanged over time.

Voluntary Services

Services performed by choice without compulsion.

Parasitism

Dependence on others for support without contribution.

Middlemen

Intermediaries between producers and consumers.

Capitalist

An individual who invests in businesses for profit.

Socialist Theory

Economic theory advocating for state control of resources.

Exploitation

Taking unfair advantage of others for profit.

Competition

Rivalry among businesses for market share.

Tribute

Payment made for services rendered.

Provisioning Service

System for supplying goods to meet demand.

Stockpiling

Accumulating goods for future use.

Bargaining

Negotiating terms of an agreement.

Consumer

Individual who purchases goods or services.

Remuneration

Payment for services provided.

Absurdity

Something that is illogical or unreasonable.

Economic Thought

Theories and ideas regarding economic systems.

Famine

Severe scarcity of food affecting a population.

Self-Interest

Acting for personal benefit or advantage.

Public Officials

Government representatives responsible for public services.

Freedom of Choice

Ability to make decisions without coercion.

Parasite

An entity that benefits without contributing.

Self-interest

Motivation to act for personal benefit.

Private enterprise

Business operations not controlled by the government.

Economy

Efficient use of resources to minimize costs.

Distribution of food

Process of delivering food where it's needed.

Greatest scarcity

Location with the highest demand for resources.

Voluntary organization

System based on free will and mutual agreement.

Middleman

Intermediary in transactions between producers and consumers.

Shipping expenses

Costs associated with transporting goods.

Public officials

Government representatives managing public resources.

Retail price

Final price consumers pay for goods.

Taxes

Mandatory financial contributions to government.

Division of labor

Specialization of tasks among workers.

Cooperative efforts

Collaborative actions towards a common goal.

Socialist plan

Proposal for state control over economic activities.

Economic efficiency

Maximizing output while minimizing input costs.

Artisans

Skilled workers creating handmade goods.

Flocks of sheep

Group of sheep raised for wool production.