Test 2- Broken window Fallacy

Who was broken window Fallacy written by?

Frederic Bastiat

Original name: That which is seen, and that which is not seen

Who was Broken window theory written by?

James Q Wilson and George Kelling.

Broken window basically says

it yields economic activity and commerce. With this we may not be so mad about a broken window by bad kids because we determine that a spending multiplier will happen.

Bastiat says:

A broken ship window does cause money to circulate (the seen) But what about unseen?

we would have spent that money somewhere else like shopping or something rather than repairs.

Urban life

-Characterized by strangers

-Anonymity

-Citizens need minimum level of order

Walter Williams quote

"Congress has no resources of its very own. More over there no santa claus or tooth fairy who gives it resources, the only way congress can give one American dollar is to first confiscate that dollar from some other American through the tax code"

Besides the seen and unseen where is Bastiat saying the money for the repairs has to come from?

-Taxing the us citizen

-Program borrowing funds internally from us sources or externally from foreign investors.

Broken window theory

1983 article published by Wilson and Kelling.

-Focusing on police involvement in keeping neighborhoods safe.

-The impact on various forms of disorder and how it influences criminal acts.

Ronald Reagan

"The best social program is a job"

Broken window theory basically says

Where disarray exists in the community there is more likely chance of criminal acts.

(Unprepared broken window leads to more windows)

(Graffiti left in place leads to more graffiti)

When a criminal goes rogue he or she faces certain..

Costs.

Include expectations as to how behavior will be seen. What will the response of society be?

Disorderliness and disarray evolves into

a rundown neighborhood where the opportunistic criminal expands his behavior. Muggings robberies, assaults may continue.

1969 experiment put together by Zimbardo

Two vehicles left unattended in two locations

1. Bronx NY

2. Palo Alto CA

1. Bronx Ny

Hood up, no license plates. Left to appear in distress.

-Vandalized within minutes

-family did it

-car totally stripped of anything of value within 24 hours then random destruction

2. Palo Alto CA

Vandalized stripped, turned over. Took longer about a week.

-had to be partly messed with to make people mess with it

Netherlands 2008 experiment

Settings where low level crimes:

-Littering, graffiti, trespassing, theft.

When confronted with a condition of disorder, people twice as likely to steal.

Alley

Bicycles were parked in a neat orderly fresh painted no graffiti place

Bicycles parked in a ally with graffiti with sign saying no graffiti

With graffiti was was the percentage littered?

69%

With clean walls and no graffiti what was the percentage littered?

33%

Clean mail box would would steal the 5 dollars hanging?

13%

Graffiti mail box

27%

Littered area

25%

Trespassing 2 signs: Don't cut through, Don't lock bikes on fence: When bikes not locked on fence

17% trespassed

When bikes locked on fence

82% trespassed

What are the economic costs of not enforcing low level criminal acts?

Tax values reduced

Social status declines.

(doesn't even have to be harsh punishment, but a policeman walking around can make a difference.)

Police what do they do?

-Protect communities not just individuals

-Maintain communities