Tag Archives: Layman’s Terms

The Broken Window: How Vandalism Simply Illustrates the World of Economics

This is part one in a new series called “Layman’s Terms”, where we take complex issues and break them down into a simple explanation that everyone can understand and learn from. Today we’ll start with my interpretation of the classic “Parable of the Broken Window” by Frederic Bastiat.

In a mall some kids, having been kicked out of a bakery for bothering customers, take their revenge by throwing a rock through the front window of the store. The baker tries to chase them but they escape from him and security.  A few of the other workers in the mall come over to look at the broken window and talk to the baker. He is quite upset that the kids got away from him.

Those kids used a gigantic rock made out of plot material. Source: schuminweb.com

Those kids used a gigantic rock made out of plot material. Source: schuminweb.com

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