We are now in the midst of the all the joy that comes during an election cycle. Did Hermain Cain have an affair, is Obama campaigning under the guise of official business to Iowa and New Hampshire, how big is Newt's waistline going to be? The main focus is, of course, the economy. Can a new administration improve the job market and if so how? The articles we read are true but the President does actually have a tremendous affect on the economy, I think. Knowing the rules of the game are very important for economic calculations and when you have a president and congress that pass band-aid style fixes to things it tends to leave these calculations hanging in the wind. How much will government healthcare cost a business owner with 15 employees? I don't know and I don't think anyone could answer me that but yet it is in the mind of the business owner as he decides what to do over the next five years.
Bastiat makes a good point of what should be obvious but is often times over looked. I just had this image of Krugman on a round table discussion about all the economic good that would come from the destruction of 9/11. I don't exactly fear people who are naive and don't see the unseen parts of economics but when people, such as Krugman, who have to have at some point learned about the broken window fallacy deny or ignore it it makes me afraid.