Broken Window Glass Theory

 

The broken window glass theory is an economic theory that says there are positive outcomes when a pane of glass in a storefront, for example, is broken.

Let me explain,

A criminal breaks the window of a storefront in order to steal some merchandise inside.  The cost of replacing that window is a business expense that could be labeled vandalism.  The store owner hires a handyman to replace that window so new wages for the handyman.  The handyman must buy supplies at a local hardware store so new revenue for that store.  The handyman has to buy himself lunch the day the work is done, so the restaurant has new revenues as well and that restaurant had to buy supplies and hire people.

So that alone causes an econ0mic impact that before the window was broken may never have taken place.

Using this same theory, we can now speculate that every time something similar happens it will result in a positive economic impact.  Something similar could be:

• Hurricane damage
• Wildfire damage
• Flood damage

We could also speculate more and say that the destruction that results from WARS causes a positive economic impact for that society because of everything, except lives, that needs to be replaced.

Every time there is a legal trial, look at all the expenses that are involved associated with that trial:

• Court room expenses (electricity, heating, air)
• Reporters/camera people
• Security guards
• Legal fees/investigators
• Taxis/gasoline/electric batteries
• Restaurants/people/supplies
• Coffee purchases
• Opportunity costs