Need To Re-Read Bastiat

The Obama administration, in the course of defending ARRA, try to argue that they aren’t falling for Frederic Bastiat’s broken window fallacy.  The problem is, they don’t understand the parable.  They’re essentially saying to people, “Hey, we know what you really want, and trust us:  it’s better than what you would have wasted your money on.”  They wrap their spending preferences in fancy terms and try to pretend that it will be better than what people would have spent their money on had they the opportunity.

That is the fallacy here, and exactly what the Obama administration has done with ARRA.