The Economics of Destruction

One year ago, on May 22nd the city of Joplin Missouri suffered a devastating blow from an EF5 tornado.

The city of 50,000 people completely lost over 8,000 homes.  Its hospital and many businesses were also trashed.  In all Joplin suffered well over $2 Billion worth of damage in the wake of a 20 mile tornado path.

But the high dollar figure isn't why we're featuring this on a blog about economics, we're putting this video up because it shows how monetary value is a big factor in determining the best use of resources.  Even though some some costs briefly sky rocketed we can also see great waste as goods that weren't needed used up money, time and effort which could have been better allocated.  Here is a story about economic recovery that doesn't fall prey to the age old delusion about Broken Windows being a positive thing. 

Economic Power

When it comes to economic power, who really holds the most weight and who do we hear most often about in the media, on campuses, and in conversations?  Is it the "rich"?

The State can not spend without taking from someone.  Centuries of taxation has shown that people focus more intently on their self interests when they have more at stake.  That brings us to Facebook in the news again, this time a founder is leaving behind his tax burden.  He is far from alone, it seems that Galt's Gulch is not confined to an actual geographic setting.  Which ties into the concept from the video above.

Thanks to Economic Freedom

A Dangerous Combination

This shows the potential for problems or even purposeful abuse when you mix the power of the economy with the power of those who know politics but have very little understand of what they are trying to control.

This combination is fraught with problems, this is only one example.

Here is a video of a politician trying to implement regulation on the economy.