The Broken Window Fallacy: Weekly Market Update 5-2-20

A lot of decisions are being made by governments that are being sold as a way to “protect” the population from the WuFlu.

Many of these decisions seem to have been made based on flawed models or in haste so politicians could be seen as doing something.

We continue to see this play out in second order and knock on effects. An example is agriculture. As the processing plants are shutdown animals are not being processed and we have the potential for food shortages and higher food prices.

The French economist discussed the sees and the unseen when making an economic decision. We need to take into consideration the possible repercussions of our decisions and how they effect people. Is the cure worse than the disease.

Tyson Foods chairman warns ‘the food supply chain is breaking: https://www.nbcnews.com/news/us-news/…

Fredric Bastiat: The seen, and the unseen http://bastiat.org/en/twisatwins.html

Livestock being destroyed because processing is shutdown: https://www.reuters.com/article/us-he…

Cali doctors have soemthing to say about shutdowns: https://www.turnto23.com/news/coronav…