Broken Window Fallacy

Broken Window Fallacy Video

Discussion Question: Opportunity Costs

Explain why economists argue that the optimal crime rate is likely greater than zero.

Here is what one of the students wrote:

People committing crimes creates a need for labour. There are more police officers needed to patrol the streets and make sure that all is safe. There are lawyers needed to defend clients involved in crime, and the judges to run the hearings. After that there are more jobs created in needing people to construct the prisons and more people are then needed to guard them. With all of these new jobs that are created by crime, these people will be bringing more money into the economy as well as increasing the demand for these positions.

Is this a good answer? Explain.

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