The broken window fallacy

Here is a short video that explains why Paul Krugman is awfully WRONG.

For more information, read the works of Frédéric Bastiat:

“Society loses the value of things which are uselessly destroyed;” and we must assent to a maxim which will make the hair of protectionists stand on end – To break, to spoil, to waste, is not to encourage national labour; or, more briefly, “destruction is not profit.”