Chapter 2 from Economics in one lesson has this fabulous story and analysis about a broken window … emphasis added in mineThanks for reading Wisdom & Prosperity!
Is thinking about the invisible opportunity cost make it a second order thinking?
There's another broken windows theory in the criminal justice system and law and order. A broken window left unrepaired signals a lack of policing and will encourage more crime. Unshackled perry crime is a moral hazard.
Is thinking about the invisible opportunity cost make it a second order thinking?
There's another broken windows theory in the criminal justice system and law and order. A broken window left unrepaired signals a lack of policing and will encourage more crime. Unshackled perry crime is a moral hazard.
Thanks for the thoughtful comment!
Thinking about invisible opportunity cost is indeed second order thinking.
To differentiate it from the broken window theory in the public policy realm ... perhaps I should have titled the article "Broken Window Fallacy" :)