The broken window fallacy. critics of keynes pointed out that not all spending is really productive. if vandals break windows and you replace them, gdp will certainly rise. yet, you are probably worse off than before because you had to use resources to repair the windows.

The broken window fallacy was first expressed by Frederic Bastiat as an attempt to prevent countries from going to war. Its main argument is that destruction may help some people in the economy at least in the short run, but eventually it will lead to greater and broader damage in the long run.

Many economists argue that this fallacy is correct but on limited occasions. Destruction is something natural, things wear off and must be replaced, a forest might burn down in order to grow back again.

It is almost impossible to argue that wars are good for everyone, specially for the ones that die, but on most common ordinary events, destruction, replacement or wear off are actually good. If your shoes never wear off, then Nike, Adidas, New Balance, etc. wouldn't exist as we know them.

answer; break-even analysis;

answer; /// the use of a bank credit card to make purchase;