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President Obama’s Cash for Clunkers program [1] where used cars in good condition were destroyed to increase sales of new cars seems to have been based on the broken window fallacy.

[1] https://en.m.wikipedia.org/wiki/Car_Allowance_Rebate_System




Although in this scenario, there’s (theoretically) an externalized benefit of improved fuel efficiency. So it’s possible that it is a net positive for society?




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