Economics Module 3 Assignment Example | Topics and Well Written Essays - 500 words

Economics Module 3 - Assignment Example (10 pts.) Watch  at least one of the following entertaining videos:   (i)  LearnLiberty.orgs The Broken Window Fallacy  (3.09); and (ii)  Stossel Macro Video 04 - Government spending, jobs, and unemployment  (2.40) Listen  to or read at least one of the following pieces: (i)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  What is Seen and What Is Not Seen  by Frederic Bastiat. Or, listen-on-the-go to the  Audio   (8.11); and (ii)Creating Jobs vs. Creating Wealth  by Dwight Lee (Audio, 8.58 minutes).    Directions:   Use your knowledge of the â€Å"Broken Window Fallacy† to evaluate each of the following claims.   These statements are used frequently by proponents to argue that government spending can help pull an economy out of a recession.  What does economic analysis indicate with regard to this argument? (Hint:   Write the â€Å"seen† and the â€Å"not seen† effect of each one of these proposals.) 2.1  Ã‚  Ã‚  Ã¢â‚¬Å"I propose that we hire all of the unemployed people as government workers and pay half of them to dig holes and the other half to fill them back up.   This way everyone who wants a job can have one!† This is a true policy that was implemented by the government to basically find a reason to spend. As of now, the focal point is in spending when the government must enact programs to stimulate growth. FDR has similar initiatives during the Great Depression as he forced the government to spend in public infrastructure even when it was necessary. This policy created jobs and reached its objectives of keeping unemployment rates low. 2.2  Ã‚  Ã‚  Ã¢â‚¬Å"The unemployment rate is high and, therefore, it is time to stimulate the economy!   I propose that we use tax dollars to pay car dealers to destroy older used cars by smashing them and sending them to the dump.   This will cause people to buy new cars which will increase economic activity and put us on the path to