Liam_snorkel
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Can you clarify what the broken window is in this case? People (resources in your words) were diverted from the dole queue, not other parts of the economy. At my workplace the small to medium commercial projects and large residential projects typical of what we were working on pre-GFC (not completely, but mostly) dried up. The national buildplan projects plugged that gap for a couple of years. Things now seems to be back to where they were, which is great.stm said:Ducati - BER did employ a lot of people, but what cost? It may be that by diverting resources from other parts of the economy where the dollars would have been used for more value-added production, there has been a net reduction in wealth and employment. Google "broken window fallacy". In this case, you are the window repairer and if we go around breaking lots of windows as a job creation scheme, you will have lots of work, but at net cost to wealth and employment.
Larger firms still struggled in this period though.