You are currently browsing the tag archive for the ‘Public Policy’ tag.
The ‘Broken Window’ parable has lasted because the mistake it identifies is permanent. People keep confusing motion with wealth.
A shop window gets smashed. The glazier benefits. He is paid to replace it. Money changes hands. Work is created. Onlookers reassure themselves that the damage at least “helped somebody.” Bastiat’s point is that this is where bad economic reasoning begins. The shopkeeper must now spend money restoring what he already had instead of buying something new, improving his business, saving, or investing. The glazier gains work. The shopkeeper loses options. Society ends up with a replaced window instead of a replaced window plus whatever else might have been created. That is not growth. It is recovery from loss.
In That Which Is Seen, and That Which Is Not Seen, published in 1850, Bastiat gave this simple error its enduring form. The visible effect is easy to grasp: the glazier gets income, then spends it elsewhere, and activity ripples outward. But the visible beneficiary is only half the story. What disappears from view are the unrealized alternatives: the suit never bought, the tool never purchased, the apprentice never hired, the expansion never attempted. The fallacy survives because the gain is concrete and public while the loss is dispersed and hypothetical. One can be pointed to. The other must be reasoned out.
“People keep confusing motion with wealth. Visible activity is easy to celebrate. The wealth that never came into being is harder to see, and easier to ignore.”
That is why the broken window is not really about vandalism. It is about how easily public argument stops at the first visible effect and calls the matter settled. Once you see that, a great deal of modern economic rhetoric starts to look less like analysis than stagecraft.
The pattern is familiar in debates over stimulus spending. Governments announce major spending packages. The public is shown crews on worksites, contracts being signed, jobs being counted, funds “flowing into the economy.” The imagery is always immediate and flattering. Something is happening. Therefore something good must be happening.
But visible activity is not the same thing as net wealth creation. Government does not create resources from nothing. It taxes them away, borrows them away, or inflates them away. In each case, resources are redirected from other possible uses. The serious question is not whether public spending produces measurable effects. Of course it does. The serious question is whether those resources would have created more value had they remained in private hands, guided by price signals, local knowledge, and voluntary choice rather than political allocation.
That is where the unseen side of the ledger matters. We see the bridge. We do not see the private investment that never happened because capital was drawn elsewhere. We see the subsidized payroll. We do not see the household purchasing power weakened by inflation. We see the grant recipient. We do not see the startup that never secured financing, or the consumer demand that was blunted by higher taxes or debt service. Public spending can make its beneficiaries highly visible while leaving its displaced alternatives diffuse and mostly invisible. That is politically useful, but analytically weak.
The usual reply is that recessions change the equation. When labour is idle, capital is underused, and private demand collapses, government spending may mobilize resources that would otherwise sit dormant. That is the strongest counterargument, and it should be taken seriously. A deep recession is not the same as a fully employed economy. Slack matters. Timing matters. Liquidity panics matter. A blanket denial of all countercyclical policy is cruder than Bastiat’s actual insight deserves.
But this does not rescue the broken window logic from criticism because it does not actually answer it. Even in a downturn, the central question remains comparative: compared to what? If the claim is that temporary public spending can stabilize demand under exceptional conditions, that is at least a serious argument. But it is not the same argument as saying that destruction creates prosperity, or that politically directed spending is wealth in itself. It still matters what is being funded, how efficiently it is administered, what incentives it creates, and whether the spending is genuinely using idle resources or merely displacing better uses that are harder to measure in real time.
“Replacement is not creation. Redirection is not prosperity. A society does not become richer by repairing destruction and calling the bustle growth.”
That distinction matters because bad arguments often smuggle themselves in under good intentions. A narrow case for emergency stabilization can turn into a permanent political habit of treating state spending as inherently productive. Once that shift happens, Bastiat’s warning reasserts itself in full. Replacement is still not creation. Redirection is still not spontaneous enrichment. Measured output can rise while underlying wealth formation weakens.
The same mistake appears after natural disasters and during wartime booms. After a hurricane, people say rebuilding will “boost the economy.” During war, people point to full factories and rising production figures. But rebuilding what was destroyed is not the same as becoming richer. Producing goods for destruction is not the same as expanding civilian prosperity. These events may generate employment, contracts, and output. They do not erase the prior loss. The relevant comparison is not between disaster and inactivity. It is between the world after destruction and the world in which the destruction never occurred.
That is what makes Bastiat’s lesson both obvious and routinely ignored. Visible motion is emotionally persuasive. A ribbon-cutting is easier to celebrate than an opportunity cost. A government announcement is easier to narrate than a private investment that never happened. Political systems are structurally biased toward what can be displayed, counted, branded, and claimed. The unseen has no ceremony attached to it. It leaves no plaque.
So the broken window fallacy endures not because the logic is hard, but because the discipline is hard. It requires people to keep asking the next question after the applause line. Jobs doing what? Spending on what? At whose expense? Relative to which forgone alternative? In a free economy, resources are scarce and choices are real. To pretend otherwise because spending is visible is to confuse accounting entries with prosperity.
Bastiat’s point remains devastating because it cuts through so much noise. Destruction does not enrich. Replacement does not add net wealth. Spending is not identical with prosperity. A society becomes richer when it creates new value, lowers costs, improves production, expands choice, and allows people to direct resources toward ends they actually value. It becomes poorer when it burns wealth, redirects capital by force, and congratulates itself for the bustle that follows.
That was true in Bastiat’s time. It is true now. The forms get larger, the numbers get bigger, and the rhetoric gets smoother, but the underlying mistake does not change. The glazier is still real. So is the window. So is everything we never got because we mistook repair, diversion, and visible activity for growth.

References
Bastiat, Frédéric. “What Is Seen and What Is Not Seen.” Online Library of Liberty.
https://oll.libertyfund.org/pages/wswns
Bastiat, Frédéric. “That Which Is Seen, and That Which Is Not Seen.”
https://bastiat.org/en/twisatwins.html
Bastiat, Frédéric. “Chapter 1: What Is Seen and What Is Not Seen.” Econlib.
Encyclopaedia Britannica. “Frédéric Bastiat.”
https://www.britannica.com/money/Frederic-Bastiat
Cullen, Joseph A., and Roger H. Gordon. “Taxes and Wartime Mobilization in the U.S. Economy: World War II as a Natural Experiment.” NBER Working Paper 12801.
Garin, Andy. “The Wartime Origins of Industry Location and Economic Mobility in the United States.” NBER Working Paper 33418.
A University of Toronto Scarborough posting for an Assistant Professor in Computational Biology and Data Science looks like a standard academic hire. It isn’t. It is a restricted competition tied to a Canada Research Chair (CRC) nomination.
The posting requires applicants to self-identify as a member of one or more “designated groups” in their cover letter, namely women or gender minorities, racialized persons, Indigenous Peoples, or persons with disabilities. If you do not fit one of those categories, you are not eligible to apply. That is not an inference. It is in the posting.
That one detail captures the reality of modern equity administration in Canadian universities: what is framed as “removing barriers” often functions, in practice, as category-based exclusion.
This is not a rogue department. It is a federal program mechanism.
The university did not invent this framework on its own. The hiring restriction is attached to the Canada Research Chairs program, a federal initiative that allocates prestige and funding to institutions under defined rules. One major rule-set is the CRC equity framework, which includes population-based targets for the four designated groups. The program’s stated targets to be reached by the end of 2029 are: 50.9% women and gender equity-seeking groups, 22% racialized persons, 4.9% Indigenous Peoples, and 7.5% persons with disabilities.
Again, these are not vibes. They are published benchmarks tied to institutional plans and program governance.
The key point is the enforcement logic. Under the CRC’s settlement and enforcement framework, institutions that miss interim targets can face consequences that shape nominations and recruitment practices. In plain terms: the program can push institutions toward restricted competitions where eligibility is limited to designated groups.
So when you see a posting that excludes broad classes of Canadians from applying, it is not a one-off. It is a downstream product of rules that tie federal research prestige to demographic targets.
The problem is the normalization of identity gates
Defenders will say this is equity. They will argue that special measures are justified to counter historical bias and structural disadvantage. That is the argument, and it deserves to be stated fairly.
But there is a moral and civic cost to the method. When eligibility is restricted by identity categories, the institution is no longer selecting among all qualified candidates. It is selecting among those who clear an identity threshold first. That is not “equal opportunity.” It is a gate that sorts people before their work is even evaluated.
If you want a simple test for whether this is principled, reverse the identity labels. A posting that said “whites only” or “men only” would be condemned instantly, for good reason. You do not escape discrimination by flipping who benefits. You normalize discrimination by making it administratively routine.
A better standard
If Canada wants fairness in academic hiring, the standard should be straightforward: open eligibility, transparent criteria, and selection based on demonstrated excellence. If there are pipeline problems, fix the pipeline. Broaden recruitment, strengthen mentorship, reduce opaque networking advantages, and enforce accountable evaluation.
Do not solve bias by writing exclusions into job postings, then congratulating yourself for it. That approach trains young researchers to see institutions as political allocation machines rather than merit-seeking communities. And once that belief sets in, you do not get trust back easily.

References
1) U of T Scarborough job posting (Assistant Professor – Computational Biology and Data Science)
https://jobs.utoronto.ca/job/Scarborough-Assistant-Professor-Computational-Biology-and-Data-Science-ON/599939517/
2) Canada Research Chairs: “Establishing equity targets for 2021 to 2029”
https://www.chairs-chaires.gc.ca/program-programme/equity-equite/targets-cibles-eng.aspx
3) CRC Program representation statistics (lists the population-based targets and deadline)
https://www.chairs-chaires.gc.ca/about_us-a_notre_sujet/statistics-statistiques-eng.aspx
4) CRC: Equity, Diversity and Inclusion requirements and practices (overview, settlement context)
https://www.chairs-chaires.gc.ca/program-programme/equity-equite/index-eng.aspx
5) CRC: 2021 Canadian Human Rights Settlement Agreement page (program framing and enforcement context)
https://www.chairs-chaires.gc.ca/program-programme/equity-equite/2021_settlement-reglement-eng.aspx
6) House of Commons Standing Committee on Science and Research, Meeting No. 2 (witness panel includes Steven Pinker and Azim Shariff)
https://www.ourcommons.ca/documentviewer/en/45-1/SRSR/meeting-2/evidence






Your opinions…