Main Question or Discussion Point
I'm reading about the parable of the broken window, which states:
I was wondering if this can be related in some way to climate change as a whole. My reasoning is that given that climate change is a consequence of a lack of knowledge about the sum total negative and positive externalities of fossil fuel usage for the past 200 years, and how it contributes to the climate, then does that render the issue moot due to the above, and hence can be considered as a net positive for the economy? This renders the doom and gloom professed by many people, as a moot issue, and hence can be considered as irrelevant, in my opinion.The parable seeks to show how opportunity costs, as well as the law of unintended consequences, affect economic activity in ways that are unseen or ignored. Some conventional economic measures, such as GDP, can exclude the negative effects of capital destruction, while including the economic activity of its replacement. Thus, breaking a window may raise GDP, but harm the economy.